How to Hire a Debt Collection Agency

No matter what kind of business you are in, there will always be certain clients who will not pay bills. At this stage, most companies run to debt collection agencies in hope of getting the bills paid. Before hiring a debt collection agency, the creditor must analyze how important the client is to them. Will he be in business with the debtor again? Informing the debt collection agency about how important the client is to you should be important. The agency will approach the debtor accordingly. Types of Debt Collection Agencies: Some of them are the face of huge companies and deal with high street banks, credits card companies. These companies do not deal with the business which will not return them bigger profits when compared to the debts. Debt purchasers,purchase debt for a reduced price, sometimes pennies on the dollar and keep all the money they collect. Generally, high street banks, credit card companies, pay day loan companies or utility companies are their clients. There are specialist debt collection agencies, which offer a very personal service to their clients and also for the debtor. They usually have a high success rate, as they focus their attention on each individual case rather than dealing with a high volume of cases. Choose a Suitable Debt Collection Agency: When it comes to debt collection, it’s important to which agency you choose to work with. Ifyou are unsure of the agency you wish to hire, ask the agency to supply references from some of its existing clients and check its genuineness. If a Debt Collection Agency has been trading for years on a No Collection – No Fee Basis, then they are excellent at their job as they don’t make any money unless they recover your money from the debtor.Go through a copy of the debt collection agencies ‘Terms and Conditions’ before instructing them to carry out a collection for you or signing any paperwork.Each agency needs to obtain the correct “permissions” from The Financial Conduct Authority in order to be permitted to collect debt. They will be given a registration number by The Financial Conduct Authority which is sometimes found on the agencies website. You should ask for the number and check it on The Financial Services Authority website. Carry out a few quick simple checks and this will allow you to have the best success rate, otherwise you could be more out of pocket than you were.

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