Are you a creditor, looking for the best debt collection agency out there?
This is a really important decision to make as an agency may make or break your business!
This article will outline some tips to ensure you find the best agency out there that suits your wants and needs in recovery.
Research the Best Debt Collection Agency
When beginning your search for the best debt collection agency, it is wise to start with the opinions of others; reviews!
You’ll want to start with the age of the agency, as we know that experience and perfection only comes with time.
An agency too old however may have older methods of collection that simply are less effective nowadays, so try to find a prime age of 5-15 years old. Now onto the reputation.
The reviews of an agency are the perfect way to find an unbiased opinion on the company and how it operates.
If creditors have had negative experiences with the agency in the past, there’s a good chance they will have spoken about it on some sort of public forum.
It is important to look for a business that will preserve the reputation of your business also, so try to find agencies that have been reviewed as polite to debtors and easy to speak and negotiate with.
Tailor your Search
When trying to find the most effective debt collection agency, it is important you refine your search to agencies that directly tailor to your needs.
You should try to find an agency adequately familiar with your injury and aware of commonly used terms or language in the business.
It will likely be difficult for an agency to collect your debt effectively and efficiently if they do not understand the nature of it! Don’t be afraid to question the business and dig deeper into the services they offer so you can make an informed decision as to whether the particular agency is right for you.
You may also want to take into consideration the specific details of your matter, such as the size of the debt, the status (personal or commercial), and, as mentioned, the industry in which the debt is regarding.
You may even want to take into consideration the hours in which the agency is available to communicate with and see how well they line up with the hours of your business to maximise the time efficiency of the collection and keep up to date on the proceedings of the recovery.
Best Debt Collection Agency Fees
The fees of the collection agency of your choice are also an important consideration in ensuring they adequately meet your needs and budget.
Fees for debt collection services will vary significantly across different businesses, so finding out the fees of agencies your considering is vitally important.
A majority of debt collection services will offer a “no collection, no pay” model, meaning their failure to recover your debts results in you not being required to pay for the service.
You should consider this model and pursue businesses that offer it to save you potential loss of money in the future. Furthermore, most agencies will work on a commission rather than an hourly rate, meaning they will take an assigned percentage of the debt recovered.
This commission can range greatly, some services charging up to 50%, so it is important to consider this before entering an agreement.
Remember to invest in a quality service, however, as the priority should be the return rate of the transaction and lower-priced services are likely to offer lower quality recovery.
Research Success Rates
This may be quite difficult, but it is recommended you research the success rates of a debt collection agency before agreeing to or signing anything. In your pursuit of debt recovery, the hiring of a debt collection agency will likely be a near last resort.
If clients are stubborn or hard to reach, you may want to try a professional’s methods on them.
Well, it is important to ensure that said professionals’ methods are actually effective! You may want to begin by looking for agencies that have clear reports on their rates of success, recovery rate, comparison reports regarding different types of debt, etc as those who do not try to hide their rates are likely to be more transparent and, more importantly, successful in the future.
Take your Time to find the Best Debt Collection Agency
It is important that you take your time with your search for the best agency for you and do not rush into any agreements, no matter how pressured you may feel.
It can take some serious man hours researching debt collection agencies and it may feel like a waste of time and, as we know, time is money! However, in most circumstances, you will find that a proper, thorough search is well worth the time it may take.
Imagine this scenario – You hire a debt collection agency, and all is well. You then find out they have broken multiple debt collection laws and the blame falls onto you. Sounds pretty bad right?
This is why a proper search through company policies and, as aforementioned, REVIEWS is vital in ensuring you get the best quality of service, and you are not left either in legal trouble or without any money recovered.
Ask about their Methods
When trying to find the best possible debt collection agency, it is wise to look into their methods also.
The most effective debt collection agencies will likely have a sound methodology and some of the best technology in the field, so be sure to ask questions surrounding this.
Furthermore, having an idea of the methods an agency will use will help to give you an insight into their likelihood of success, as modern methods are likely to be more successful, and exactly how they will recover your money.
You may also want to research the flexibility of the agency so you can gauge if they will offer multiple options for the debtor, as to increase success rates.
As aforementioned, there are strict guidelines on the action a debt collector may and may not take, and violation of said guidelines will land the creditor in legal trouble.
Checking in on the methods an agency will use will help you to avoid just this, as any unlawful methods or resistance to inform you of the methods is a red flag to avoid.
Key Takeaways – The Best Debt Collection Agency
Searching for the best agency can be a difficult task, so it is important you actively invest some time into it!
Remember to invest in an agency that will bring you the best results and act lawfully and politely to ensure the reputation of you as a creditor will remain untarnished.