Using a Debt Collection Agency
People and Companies across the UK are increasingly using a debt collection agency to recover debts owed to them. This is a trend that goes against more old fashioned methods of expensive law firms, costly court fees and protracile procedures.
Your selection of Debt Collection Agency however can contrast greatly in terms of achieving the desired result. Using a Debt Collection Agency that is ‘fee earning’ clearly benefits from a lengthy scenario whilst the cowboy firms that carry the badge of ‘No Win – No Fee’ carry damage more than just your purse, they can damage your reputation also.
A professional and proficient Debt Collection Company can be of real benefit to any individual or business seeking to recover unpaid debts in a professional and expedient manner.
There are major factors to consider though. It is basically the same situation as employing a new member of staff for instance as basically you are looking to employ someone to work for your business. Their ethics should be similar and you will want them to be professional at all times.
FACT: Choosing the wrong Debt Collection Agency will be far worse than not choosing one at all. Why? Let us consider the implications of such.
Professionalism – This should be a key factor that should rank higher than most others. Instructing any company that is going to be an extension of your business needs deep consideration. You will want them to conduct themselves professionally at all times as effectively they are under your instruction.
Results – this is a key area of consideration also for if the results will be poor, what is the point?!
- Experience – Industry Experience
- Endeavour – A proactive strategy
- Efficiency – Diligent and Proficient
- Ethical – Compliant, lawful and Professional
- Effective – Results driven and Cost effective
- Established – Have a proven track record
The cost of recovering debt can differ dependant on the depth of service. Transparency is imperative as you do not want a fee earning or drip pricing service that has hidden extras. Using Private and Personal Debt Collectors can serve real benefits. Using the best debt collectors will maximise collections.
It is a fact that a results driven service will deliver more than a fee driven policy for obvious reasons. It is more lucrative to the fee earning entity for the matter to become protractile. Fee earning is a standard policy normally adopted by law firms however many Debt Collection Agencies have fee earning aspects too.
The ‘No win – no fee’ brigade will not work for free! It is a fact that many debt collection agencies have started and failed within their first 12 months, often taking their clients money with them as no business can afford to operate for free. When using a debt collection agency, it is very important you apply diligence and do your research.
Some companies charge ‘abortive’ fees where they will invoice you even if the debt is not collected. And there are also some that companies that will deduct spurious disbursements once the debt is collected. This is in addition to any commissions. You should also be aware that some will charge you even if they do not collect your money.
A Debt Collection Agency’s reputation will be based on what they have done, not what they claim to do. The best top Debt Collection Agencies in the UK include companies such as Frontline Collections & Federal Management. They deliver a low cost, fixed fee service that comes with low commission rates.
Anybody these days can pop a website up and claim to be a Professional Company. It really does matter on the kind of Debt Collection Agency you want to work with. If you are looking for a back street firm of thugs then be prepared for the consequences.
If you are thinking of using a Professional Debt Collection Agency, it really does pay to do your homework. The various review platforms around offer a great insight into the company’s ethics. Another option is to see how logng they have been trading. Frontline Collections have been trading nearly 15 years. We have collected millions of pounds in unpaid bad debts in the process.
Using a Debt Collection Agency can be a very positive thing indeed. Frontline Collections deliver the kodak effect – let us turn your negative into a positive!