Using a Debt Collection Agency
People and Companies across the UK are increasingly turning to using a debt collection agency to recover debt owed to them. This is an increasing 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.
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.
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 in addition to any commissions.
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 who specialise in a low cost, fixed fee service that comes with the UK’s lowest commission rates.
If you are thinking of using a Debt Collection Agency, it really does pay to do your homework. Look for the kodak effect – and turn a negative into a positive!