Debt collection agencies are a big help when it comes to tracking and recovering outstanding debts from past customers. You don’t have to stress about tracking those delinquent debtors since they will be the ones doing the task for you. Whether you have a small or big business, finding a good collection company is essential to be assured that all those outstanding debts get paid.
Here are some simple tips to remember when hiring a collection agency.
Know Their Specialization
Every collection agency specializes in different business types. Do a research and see what kinds of industry they usually deal with. You can ask for referrals or suggestions from the experts in the field such as accountants, attorneys or even some of your business contacts. Choose one agency that specializes in your type of business so their strategies is well suited to your needs.
Make a List
Creating a list of 3 or 5 collection agencies helps in narrowing down your options. From this list, weigh all the factors and see which among them is well suited to your business and your needs. You may arrange a meeting to assess their skills and expertise. Be sure to list down all the essential questions you want to ask the agents such as the strategies and technology they employ in doing their task.
A collection agency should be licensed in order to recover debts in a legal way. Skip tracing is an important skill of collection agencies that allows them to track and trace debtors that have moved into other states without leaving their contact number or their new address. If the debtor transferred to a place where the agency isn’t licensed, they cannot recover that debt. Be sure to choose a good collection agency that is licensed across multiple cities and states especially when dealing with moving debtors. Contact one of Queensland’s finest Gold Coast debt collector agencies to solve your debt recovery problems.
Another important factor to look for an agency is their insurance. There are times when a debtor refuses to pay and decides to sue you or the collection agency for employing steps to recover the debt. With an insured debt collection agency, you can be assured that both you and the debt collector are safe from any lawsuits. Make sure that the coverage of their insurance stretches up to where the debtor is currently residing.
Of course, debt collectors have their own different ways of calculating their service fees. Discuss this with them and see if it’s fine with you. Some offer standard fees while others depend on the amount of debt they successfully collected. It’s up to you to decide.
Follows the Fair Debt Collection Practices Act
Debtors also have their own rights and they can sue you or the collection agency when you cross the line. These acts include harassing the debtor, using profane language, annoying the debtor and other forms of violations and harassment. Choose an agency that abides in this rule to be safe from lawsuits and other problems.
It is no doubt that collection agencies are of great help no matter what type of business you have.