Debunking 5 Common Debt Collection Myths
Over the years, the number of debt collectors worldwide has rapidly grown. Which is why there are numerous myths and misconceptions that constantly float around debt collectors.
Debt Collection Company is a fantastic source to get rid of bad debt. However, many myths and misconceptions regarding debt collection make many companies hesitant to use their services. The aim of any Debt collection agency is the collection of their client’s debt, so that the customer is able to recover their losses due to non-paid bills or the balances of credit cards and other loans. They represent creditors when seeking the repayment of debts and employ different strategies to achieve the goal.
As stated above, there are many myths regarding the responsibilities of debtors as well as actions they should or should not do. Therefore, here are some of the most commonly held misconceptions regarding debt collection dispelled.
Let us quickly have a look at those points in detail!
5 Common Debt Collection Myths
1. Debt Collection is only for old debts
Many businesses believe that debt collectors are just to collect old debts. This is clearly not the case. Instead of chasing the debts you owe for months, you can hire an agency for debt collection. With this you can delegate the job to them. Engaging professional Debt Collection Agency early in the process will aid in building the brand’s reputation, boost recovery, and dramatically reduce the amount of accounts that are destined to bad credit.
At Debt Nirvana, we cater cost-effective and customer-oriented debt collection at all stages.
2. Hiring a Debt Collection Company is very expensive
Many businesses hesitate to engage with debt collection companies for their services due to concerns about budgets. However, in reality, debt collection isn’t nearly as costly as many believe. What’s costly is letting your debt payments disappear over time. A lot of agencies will use a contingency plan and you’ll only be liable when they are able to to collect your debt. Additionally there are Commissions that agencies charge, and that varies from company to company.
At Debt Nirvana, our high-quality collection services are built on a contingency basis and provide some of the most affordable commission rates you can find.
3. Debt Collection Agencies do not care about anyone else
Many people have said lately that Debt collection agencies do not care about their client’s and customers. Debt collection agencies have a bad reputation for being harsh and aggressive to people who are in debt. In the past, decades or years it was the situation. However, things have changed, and now many debt collectors have an approach that is customer-centric and connects with customers.
4. Only Big Companies need Debt Collectors
Whatever the size and industry, many companies struggle with inconsistency in cash flow and high debts with the current economic conditions. Small businesses in particular are experiencing a lot of difficulty with late payments. These businesses of smaller size tend to think that debt collection companies are just for large corporations. However, many small companies use debt collection agencies. This not only helps the company get rid of more bad debt, but also frees internal resources to concentrate on their main business.
5. It Will Damage Your Brand’s Reputation
One of the most common myths regarding debt collection is that the agency that collects debt could damage the brand’s image. It is possible to imagine debt collection agencies as unregulated, unjust and abrasive. Debt collection companies follow strict guidelines laid in federal and state laws, such as the FDCPA. They help safeguard customers from aggressive collection agencies. In actuality selecting an appropriate agency can boost the image of your company, especially when you are able to engage them early on.
Conclusion
We hope this blog helps you take yourself out of all such baseless myths. At Debt Nirvana, we have a dedicated team of professional debt collectors who provide you the best Debt Collection Services. We ensure that our agents adhere to the correct guidelines for messaging and conformity when communicating with customers. Our experts are trained to demonstrate compassion while working respectfully with debtors to assist them in settling their outstanding balances.
We also offer the best Credit Risk Management, Credit and Industry Reports, and Enterprise Risk and Advisory services.
To know more about us and our service or to get a quote, visit us now!
