It seems that collection of unpaid commission and fees become a big challenge for a recruitment firm. These debts sometimes lead the recruitment companies towards loss. I order to tackle the debt collection they generally need to get a help of Debt Collection Agency.
Today, in this blog we are going to discuss how Debt Collection Agency
is helpful to recruitment agency for their master collection procedures. Debt collection firms have in-depth knowledge of business terms of an industry, market operations and general excuses and disputes that may arise. The chunk of this information helps debt recovery agency to precisely explain debtors about their responsibilities as per terms and conditions of business and also about the consequences of legal actions. In a majority of cases, a full amount of payment is collected without any legal action, with the help of debt collection agency.
Debt collection agencies are very beneficial for handling complicated cases and disputed debts, such as:
Temp-to-perm conversion fee.
The debtor reserves the candidate for a designation other than the one CV was intended for.
The candidate enters into a contract with the debtor as a sole trader or a 3rd party.
The candidate is provided with rebate period but if the debtor breached the terms of business than their right to the rebate would be negated.
Sometimes, legal actions are necessary for debt collection
, under such circumstances a collection agency discusses the advantages and risks of legal action and they will also advise their clients to perform an action if affirmed results are assured. But as we said above a majority of cases are settled without any legal concern.
Want to know more?
If you are a recruitment firm which needs someone to collect their debt then you can get help from the professional and legal firm- Debt Nivarana
, contact us for a free debt recovery
Handling unpaid debt
is really an option not many people can afford. You send out an invoice to your customer, but the customer does not pay it. You wait for a few days, send reminders, and still you don’t get the dues cleared. One way is to get frustrated; the other way is to take the legal route and send a demand letter, before going ahead and taking extreme measures.
Demand letter all the way
A demand letter is custom made for customers’ who refuse to clear their pending dues. Ideally, a demand letter is a legal notification drafted by the attorney of the company, which demands a customer to clear what they owe to the issuer of the demand letter. However, the question to ask is, “Does a demand letter work with stubborn customers also?”
Ask a lawyer this question and the standard answer one would get is, “It depends”. It won’t be wrong to say that demand letters will also work in some situations and they won’t work in others. In a normal scenario, most attorneys tend to ignore demand letters from opposing counsels; on the other hand, there is always a possibility that your request for repayment might not fall on deaf ears and you just might get what is due to you.
While some people want to send multiple letters to the debtors, many others prefer to go ahead and hire a collection agency to do their bidding. By hiring a collection agency
, they are able to assimilate a ray of hope for recovering what is due to them.
Hiring a collection agency:
A collection agency is a third party company, which uses different methodologies to help another company/individual recover their pending dues. However, before hiring an agency, it’s imperative to have exhausted all possible sources of recovery. Once you are sure there is no other trick in the book left with you, you should go ahead and hire an agency.
Now the main part comes into the picture. How do you hire an agency? In an ideal situation, you need to hire an agency, in pretty much the same way as you would hire a lawyer. You ask around, check with family and friends, gather opinions and read reviews before taking the final call. Once you have narrowed down on the agency which caters to your needs, you are ready to take the plunge.
Winning the judgment on your terms
In normal circumstances, you need to consult your attorney and be ready for negotiations when the time for settlement comes. In the scenario that your negotiation attempts fail, you should initiate arbitration. Even if that does not get you the desired results, only then you should consult and hand over your pending debt to a collection agency. However, before you do step over to a collection agency, you should keep one thing in mind; there is no guarantee to get a full recovery on the pending debt, which might act as a spirit dampener in the end.