When your debt collection agency is not performing well as it used to be, you need to think about finding a replacement. There are many debt collection agencies out there who would love to do business with you. Staying with your current agency may prolong the collection of your much needed funds. Here are some things to think about:
Detecting the Problem
Some debt collection agencies may be having problems with handling their accounts due to problems with manpower, finances and licenses. Compare the current performance of your collection agency with the previous month’s, quarter’s or year’s progress reports. This will give you an idea how they have been performing over time.
Call Attention to Poor Performance
You may want to inquire on the progress of your accounts and remind the agency of their sluggish performance recently. The agency should treat that reminder as a warning. You can write them a formal letter as a way of stating your concerns or you can personally talk to the manager of the collection agency to voice your opinion on the matter. Informing the agency of the problem will give them the opportunity to correct it and improve their performance in the coming days.
Review the terms and conditions between you and the agency. There should be a section detailing the conditions for the termination of agreement. Check if one of the conditions applies to termination of contract due to poor performance. This will serve as your valid reason for terminating the services of the collection agency. If the agency continues to show poor performance without any significant improvement, it’s time to settle your fees and move your business somewhere else.
Search for a New Collection Agency
Once you have settled the fees from your previous agency, you would not want to hire another one like it. This time around, you have the chance to choose carefully. Ask for a referral from friends and acquaintances. This will help you narrow down your search for a reputable collection agency.
Set New Standards
List all the things you want out of a collection agency. The list can contain the criteria or standards you want to implement when you hand over your accounts to the new agency. You may need to check a sample of their collection reports and other pertinent data to have an idea of the agency’s output. Visit offices and talk to managers in person to get a feel of how they operate. Inquire about fees and collection methods.
Once you have gathered the necessary information, it is time to select your new collection agency. The agency should be licensed and charge reasonable fees. You do not want to add more costs to debt recovery than what you have already spent with the previous agency. Make it clear to the new agency that you will not tolerate poor performance this time. Give agents the assistance needed to collect from your debtors to help them succeed in recovering the money owed to you.