Debt Collection Agencies and Their Tactics

Debt collection agencies are the one business nobody wants to urge a call from. However, in our current economy it is a fact that greater numbers of individuals and businesses are finding themselves on the receiving end of calls from debt collectors. In fact, debt recovery has become a big business given the dismal state of credit markets. Businesses are finding that they need to call collection agencies with greater frequency simply because they can no longer handle the number of defaulting accounts. Despite the usefulness of collection agencies, they are mandated by law to follow certain guidelines and to follow certain behaviours in order to prevent their collection tactics from getting out-of-hand.

Some rather unscrupulous debt collection agency would cross the line to unacceptable behaviour. Debt collectors are not allowed to intimidate or otherwise threaten the people from whom they are wanting to collect from. They are not allowed to contact a private at their place of labor, to talk to their colleagues or their boss unless it's to seek out out the way to reach the person. They are not allowed to contact an individual before 7am or after 9pm at night and they are not allowed to contact the person's neighbours, friends or colleagues unless it is to seek out out the way to reach the individual. Unfortunately, despite the principles, many debt recovery businesses find ways to bypass the principles and still find yourself harassing the people with outstanding accounts.

If you are a business owner and you are faced with having to hire a debt collector to help with debt recovery, then you should definitely vet the available debt collection agencies very carefully before hiring just anyone. The last thing you want is for your reputation to get tangled up with the tactics of an unscrupulous collection agency. It is always in your best interests to find the scrupulous debt collectors so that your company's reputation does not suffer due to a third party's actions.

That said, it does not mean that all collection agencies use such tactics to get what they want. In fact, the overwhelming majority of debt collectors follow the principles and collect in a suitable manner. However, the best way to start, when it comes to debt collection, is to take preventative measures before it gets to a point where you need to call in collection agencies. When you first notice that someone is more than 30 days behind in their payment, you should contact them immediately in order to ascertain whether it was just an oversight on their part or if they seem to be in some sort of financial trouble. Sometimes, if you find out that a client is unable to make a complete payment, it is best to settle for less and to write the rest of the debt off. If you are unable to even negotiate such a settlement, then it is best to pass on the debt to a collection agency.

By hiring a debt collector to assume your debt, you will at least get a portion of your debt repaid and then the trouble of recovering the unpaid balance belongs to someone else.

Khushi is a highly passionate writer, who loves creating an imaginary world with his writings. Business Development Consultant, Strategist, Blogger, Traveller, Motivational Writer & Speaker.