How to Choose the Right Collection Agency?
For the big companies that offer products or services, pursuing people who haven’t paid their debts is not easy because some of the people don’t have the right techniques to handle the debtors. That is the reason why hiring a debt collector agency is the suitable way to get your money back quickly.
What is a debt collection agency?
A debt collection agency or a debt collector is a person or a company that specialises in debt collection and has the role in pursuing the debtors by individuals or businesses. There are several types of collection agencies including:
- A First-party agency
A first-party agency is the subsidiaries of the original company the debt is owned too.
- A third-party agency
A third-party agency is separate companies that had contracted by a company. Their role is collecting debts on their behalf for the fee debtors will purchase their debts at the percentage of its value, then, try to collect it. Usually, every country has its own rules and regulations related to them.
How to choose the right collection agency?
- Hire a licensed collection agency
Typically different countries have their own rules for debt collection agencies. So, make sure that the collection agency will be hired is licensed, bonded and the collection agency can adhere to the rules of the Fair Debt Collection Practice Act (FDCPA). This is to avoid any risks of unlicensed collection agencies that can exist in the future.
- Do the research
Some of the collection agencies usually will be specialised in the certain area. So, it is recommended, you do the research before choosing the right collection agency. You can choose the collection agency that closes to your company or home and chooses the collection agency that has suitable programmes to your company. Also, consider hiring the collection agency that has been having wide experiences and
- Think about the fee offered
When you have found a collection agency that may suitable to your business, you should also see the costs provided because different collection agencies have their different charges. There are the agencies that ask you to pay in high prices but you just get the unhappy services so that doing research before choosing the right agency is very important.
- Choose the collection agency that has insurance
Most of the collection agencies have their own tactics to pursue the debtors pay, but, it can cause other problems such as the debtors feel that the agency in bad faith. So, you should make sure that the collection agency has an insurance to keep you both.