When the topic of debt collection is brought up, many of us automatically imagine a couple of roughly-hewn men with clubs or even more lethal weapons in tow. While there may have been a time when this was the most common method of debt collection, it is not advisable to pursue this path in this day and age: beyond being uncivilized, it is illegal and it can totally tarnish the reputation of the creditor entity. When outstanding debts have to be collected, then it is time to consider contracting the services of a debt collection agency. Choosing the right agency can be a bit of a tricky matter, however, so let’s go ahead and take a look at some of the more important points to bear in mind:
Finding trust… If you are going to delegate your debt collection work to an outside (third) party, then you will want to ascertain that the agency is trustworthy. Though trust is a subjective and somewhat slippery concept, a good way to find it is through references from friends, family, peers—anyone that you already trust. You don’t want to blindly fumble for the agency you think has the neatest sounding name; you want to get the opinions of people you trust that have used the services of X, Y and Z collection agencies, and to draw your own conclusions from there.
Customization… When looking around for a collection agency that suits your needs, you want to make sure that they will be able to suit those needs as closely as possible, adapting to changes that may arise. Customized plans are an indicator of a highly reliable agency, as it proves (in part) the entity’s commitment to getting solid results for its customer. Customized payment options are particularly important: for many businesses and individuals, the best agency is going to be the one that offers them a flat-rate fee that can be honored in one of several ways. Finally, though not always an option, it’s a good sign when the agency commits to not charging anything until the debt has been collected (either in full or in part).
Licenses and permits… A debt collection agency may meet all of the criteria detailed above, in which case you’re practically sold on them, right? Well, if they’re not licensed then you shouldn’t make that leap, as you don’t want to have anything to do with agencies that are operating on the margins of or completely outside the law. Check to see whether the agency has all the appropriate licenses and permits to operate; similarly, check to see whether the individual agents it sends out into the field/courts have the proper certification. Failing to look into these details could come back to haunt you.
Local, national, and international reach… A business’s debts may be scattered around their local area, or they may be held by people or organizations in other parts of the country or even other parts of the world. Many debt collection agencies are licensed and certified to operate across vast geographical areas, including overseas, but you will want to pull that information up and compare it with the nature of your debts to be collected.
The Cash Protection Agency are leading providers of debt collection in Leicester.