What happens once I action a debt collection agency?

Instructing a debt collection agency shouldn’t leave you feeling nervous or powerless – if anything, the opposite should be the case.

instructing a debt collection agency

When you action a debt collection agency, you are instructing them to act on your behalf to recover your money.


In every practical sense, it is equivalent to chasing the payment yourself – with the exception that the person or organisation doing the work is an external third party, rather than an internal individual or department of your own company.

The important thing is to work with a debt collection agency with a proven track record, so that you know they will be on your side – don’t simply sell off the debt and lose any rights to the interest or penalty fees that might accumulate on it.

Once you have a debt collection agency on your side, it should relieve a lot of the burden from your shoulders, as they will chase the payment for you, and simply keep you informed of their progress.

In the best cases, all it might take is a formal letter or other contact from the debt recovery agency to kickstart your non-paying customer into action to settle their debt in full.

Where this does not happen, the debt recovery agency can advise you on the best action to take next, which might mean adding statutory interest and other fees to the debt, or even taking the debtor to court in order to force them to pay.

The benefit of having a debt collection agency acting on your behalf is that they have the experience of dealing with debtors, including all of the usual excuses – and how to prevent these excuses from being treated as legitimate reasons to delay payment.

A good debt recovery agency will never advise you to go to court if there is little to no chance of recovering your money, so listen to the recommendations made, and then decide whether or not to authorise each action as the case escalates.

In every instance, the aim is to recover your money in full, as quickly as possible; ultimately, a reputable debt recovery agency will share the same aims as you yourself, making them a valuable ally in pursuing non-paying debtors for full settlement.

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