5 Tips to Ensure You Hire a Great Debt Collection Agency

In case your third party collector is a bad fit for you, the firm can easily get into trouble.

The harsh economic times has forced most people to fail in repaying their debts in time. According to recent research, 30 % of people with debts in the US are said to fail in repaying their debts in time.

You will always need assistance from a debt collection agency whenever your customers or clients fail to pay for the products or services you provided them at some point. However, this is much more than just as simple transaction procedure. It is a situation that will require a great responsibility for your collection partner and business.

In case your third party collector is a bad fit for you, the firm can easily get into trouble. The result can be bad publicity, fines and law suits. Any good debt collection agency should have a system that can avoid such situations. Here are five things you need to do when hiring a great debt collection agency.

Do Extensive Research

The debt collection agencies usually specialize in various areas. For example, there are agencies that are known in securing funds from large firms while others excel in smaller businesses. You need to find out the type of debtors the collection agency deals with in most cases and the type of businesses it serves. Ensure you go for an agency that has experience and specializes in your type of business. In case you need any type of assistance on how to find business debt recovery firm in Holland, ensure you first contact your attorney, accountant or other business contacts.

Find their Collections Methods

Different countries and states are known to have different rules and regulations for the debt collection companies. Anyone would be interested in hiring a licensed debt collector and one that will adhere to the Fair Debt Collection Practices Act rules.

Fair Debt Collection Practices Act will provide you with details on the collectors who are collecting debts for credit cards, mortgages, medical expenses, auto loans and household expenses. Even if you are not interested in collecting such debts, it will be a great idea to choose a company that will adhere to the practises. This will ensure that the aggressive debt collection tactics do not harm your reputation.

Check the Type of Technology

Good technology systems are known to increase returns and reduce inefficiencies. Ensure you look for companies that have skip tracing services capable of helping locate the customers that have disappeared. It is important that companies have algorithm processes using data to help in building customer profiles.

Ensure you understand their Fee Structure

Debt collection companies are known to have different fee structures. There are collection agencies that will charge a flat fee. Such fees are usually offered early in the debt collection process. There are also agencies that charge the contingency fees which are a percentage of the amount they have collected. Ensure you always compare the fee structures of each of the debt collection company to see which one will work best for you.

How Often You Will Be Updated

You debt collection agency needs to update you on the progress made with your delinquent accounts. Though it will hold you accountable, it will also help in ensuring you recover your debts quicker especially if the periodic updates are required. There are agencies that send several payment on a monthly basis while other offer online tools which will enable you to check on each accounts progress.

Check if the Agency is accredited

Though not all the states require accreditation, being a member in an organization such as ACA international will always be a great sign. In order to be a member of the ACA International, the members must be bonded and ready to take pledge in adhering to the non profit code of conduct for the debt collectors. Ensure you have a good grasp on their core values and practises before you make any commitment to your collection partner.

If you need assistance on top debt recovery agencies in Italy, the author of this article suggests First Collect.

If you’re seeking debt collection in Holland, the author of this article recommends First Collect International.