Collection agencies have a tough job. They work for companies doing the jobs that those companies don’t want to do- attempting to collect debt from delinquent clients. Sometimes, collection agencies are successful in their efforts and sometimes they’re not. The problem, however, is when they’re being paid based on their success alone. For them, that means that a client who refuses to pay could mean a lack of income. That’s why collection agencies really have to watch their bottom line and regularly evaluate whether working with a particular client is worth it or not.
Making a Match
It’s not just the collection agencies who have it rough. Companies, too, have to work hard to find the right collection agencies to work with. If both can do their part, though, a lot of future problems and issues can be avoided. That’s why making the right match early on is so important.
Creditors and collection agencies both need to be upfront about their goals and how they will be accomplished. Creditors need to ensure that their collection agencies are following all the laws and regulations in place for collection agencies, and agencies need to make sure that they’re working with and for clients who will appreciate and stand by them.
Long before creditors and collections agencies ever agree to work together, it’s imperative that the two sit down and make sure they are in agreeance on how things will be done. From there, it’s easier for the collection agency to look out for itself and still make sure it is meeting the creditor’s requests.
Staying in the Know
Once a relationship has been formed between creditor and collection agency, the collection agency regularly needs to evaluate if the partnership is remaining beneficial for both.
Collection agencies also need to stay “in the know” when it comes to what their clients are doing because it will affect how the agency can and should do business. Collection agencies should be informed of consolidation of offices, system conversions, procedure changes, administrative changes, and any other changes that will or could affect how the collection agency collects debts. If the creditor is not doing its part at keeping the collection agency in the loop, the relationship is not going to work.
When to Walk Away
Sometimes, no matter how hard either party tries, however, it is best to end the professional relationship, and it’s important for both parties to know when that should happen. When there doesn’t seem to be a solution to an ongoing problem and all other strategies have been tried to work things out, then it’s usually best to part ways.
However, collection agencies should always strive to part ways with their clients amicably. This could lead to a future relationship if the creditor changes its needs or goals in the future. At the very least, it can lead to a good reference.
Collection agencies should never just leave creditors in the lurch either. They should always plan to part ways well ahead of time and leave time for the creditor to make other arrangements.
When both parties act professionally and fairly, everyone can come out on top even if a particular relationship isn’t a perfect match.