How A Decent Debt Collection Agency Operates

When a business or an individual is owed money, there are many questions that need to be answered.

This is especially true for those who aren’t experienced in the debt collection process.

For smaller businesses, debts can be extremely troubling and could lead to situations as bad as insolvency proceedings.

Much like paying back credit cards or student loans, these are extremely important and require collecting immediately.

The whats, whos and whys of debt collection can be a confusing challenge to face, especially if you are already stressed due to the money owed.

These questions usually consist of:

• What is the debt collection process and how expensive will it be?
• Should I attempt to collect the debt by myself or abandon the debt?
• Who is the best debt collection agency to use?
• What makes a good debt collection agency?
• What is the statute of limitations on the debt in question?
• Should the debt I have be sold to a debt buyer to save the hassle of the collection?

For those in the situation where they are owed money, these are very valid questions to ask.

The owing of money can cause very real financial issues for any business so these questions need answering.

The original creditor may try to recover this by sending a county court judgement to the debtor via a written notice.

Choosing a good debt collection agency that operates in a compliant manner is of the highest importance.

There are many types of debts which mean there are many types of debt collection agencies to choose from.

In this article, our experts have put together a comprehensive guide on what to look out for when choosing a debt collection agency.

What Makes A Good Debt Collection Agency?

When it comes to choosing a debt collection agency to undertake the recovery of monies owed, there are many attributes you should look out for.

These attributes define what is a good debt collection agency, and if you are unaware of these you may end up choosing the wrong one.

Fortunately, there is a law that governs how agencies can undertake the debt collection process.

This will give you peace of mind that the relationship with your debtor will not be jeopardised in the process.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) was put in place in 1977 and prohibits entities from engaging in abusive practices in the collection of consumer debts.

The act does not cover business debts and only relates to those on a personal level.

This means that debt collection agencies must, by law, carry out the collection process in the most compliant way possible.

It also means that the relationship between yourself and your debtor will not be jeopardised during the recovery of the debt.

The Attributes of A Bad Debt Collection Agency

To understand what makes a good debt collection agency, you first need to know what makes a bad one.

There are more good agencies than there are bad ones, however, the cowboys of the industry could still catch you out if you are not careful.

Some of the key points to watch out for are:

• Lack of online reputation i.e. poor or no reviews from clients.
• No demonstration of success rates or client testimonials.
• A lack of industry accreditations or awards.
• Abortive fees (being charged even if the recovery has not been successful).
• They do not provide debt validation letters to the debtors.
• Credit Bureaus information that shows a weak or bad credit report.

If you have delinquent accounts that have not paid you in a reasonable time limit, these are some traits you should look out for.

Good Debt Collection Agencies

Now that you have the knowledge of what makes a bad debt collection agency, you should know how to choose the right one.

At the UK Debt Collection Bureau, we have a list of recommended partners that we believe are the best agencies in the industry.

Our partners are able to trace and collect debts successfully, even if you only have your debtors phone number or email.

If you are wondering “How A Good Debt Collection Agency Operates”, look no further than our recommendations.

Commercial Debt Collection – Federal Management

Thousands of businesses in the UK struggle with unpaid accounts every year, with unpaid invoices being among the most common.

HRNews.co.uk reported that UK SMEs are currently chasing around 61 billion pounds worth in unpaid invoices.

When owed money by a client that refuses to pay, you should contact Federal Management.

Federal Management has been collecting debts since 2004 for businesses in almost every industry sector.

They are the only agency in the UK to be regulated by the Financial Conduct Authority, which demonstrates the calibre of the services they provide.

Private and International Debt Collection – Frontline Collections

Frontline Collections are the best debt collection agency for the recovery of private debts.

These can range from debts owed from friends or family members to customers not paying for services.

The service that Frontline Collections delivers provides superb results and they can recover up to 90% of undisputed cases instructed to recover.

They have collected debts on behalf of many different sectors, including independent schools, vets, dental practices and nurseries.

They can also collect monies from debtors based anywhere in the world thanks to their team of international debt collectors.

Both of the agencies above are the most trustworthy and aare the answer to a “good debt collection agency”.