Debt Recovery for Claims Management Companies

Debt Recovery for Claims Management Companies

The United Kingdom is home to around 3,000 claims management companies, with most operating within the personal injury and financial services sectors.

CMCs are businesses or self-employed individuals that help make claims for compensation or other benefits. This is provided in exchange for a percentage based fee, paid when the services have been completed.

A growing number of CMC business owners across the UK are seeing customers refusing to pay these fees for one reason or another.

Spotting the warning signs of a customer that will fail to pay your management fees can be a challenge in itself.

We asked our specialists to provide us with the top ways of spotting someone who has no intentions of paying.

Debt Recovery for Claims Management Company Warning Signs

Across our long history, we have experienced every debt collection scenario and all excuses related to why money is not paid on time.

The sad reality of services that are not paid upfront is that there will be delinquent customers who abuse this.

This can be extremely disheartening for any business that provides a supportive service for its customers.

Lack of communication with the customer

Towards the end of the claims management process, your customer may start to reduce communication.

You may have tried phone calls, texts, letters and emails that are all starting to go unanswered.

This may be an indication that once you have provided what they want, they will ignore the payment.

There may be perfectly reasonable explanations for why communication has dwindled, however, it is better to prepare should the worst happen.

Excuses after excuses for why they can’t pay

If payment dates are closing in and the customer is making excuses for why they may not be able to pay on time, this should be investigated.

Some of the most common excuses to listen out for are:

• “I do not have the funds to pay for this right now.”
• “The person that is going to pay is out of the office.”
• “I am still waiting for you to send the invoice to me.”

One excuse is reasonable, as they may have a genuine reason for their financial troubles.

Should excuses start to become more frequent and varied, they may be stringing you along.

Broken payment promises

A common warning sign of someone who isn’t going to pay you is broken promises related to the payment.

Your customer may promise you that they are going to pay on the invoice due date, only to withhold this on the day.

Promises may be made in good faith, however, any customer intending not to pay will happily break these in a heartbeat.

You should only remain lenient for so long, as further broken promises can result in more damage to your finances.

Undertaking Debt Recovery for Claims Management Companies

In most situations, if someone has the mindset that they are going to not pay you, there is no stopping this.

Only so much knowledge of the warning signs can help you prolong the effects this has on your cash flow.

If you or your claims management business are in a situation where fees have not been paid, it is beneficial to speak to a professional.

Frontline Collections, for example, have helped a great deal of claims management companies recover fees owed to them.

We are renowned as the UK’s leading private debt collection agency for recovering claims management fees.

If debt recovery for claims management companies is what you need, speak to our friendly specialists today.

Debt Recovery for Claims Management Companies – Frequently Asked Questions

Our claims management customer has not paid, what should we do?

When a customer fails to pay, the only solution is to use a debt collection agency such as Frontline Collections.

How much do Frontline Collections charge to recover debts?

We operate the lowest commission rates across the industry, which means you will only pay as little as possible.

Do Frontline Collections provide high success rates?

We are known as the leading debt collector in the UK for private fees, and our success rates are on average 90% and above.

What happens if my debtor is ignoring me?

If you are being ignored by a debtor or they have absconded, we have a tracing system that can track them down.

Can unpaid management fees be collected anywhere in the UK?

Yes, we collect debts for those registered in England and Wales, as well as Scotland. We also have a global network of experts, allowing us to recover unpaid fees virtually anywhere.