The Truth About No Win No Fee Debt Collection

If you are owed money by someone, you may be on the lookout for a debt collection service.

In the interest of recovering money that is owed to you, you will need an organisation that you can trust from the start.

You may come across the term “No Win No Fee” when conducting your research.

In this article, our professionals have put together some guidance on The Truth About No Win No Fee Debt Collection.

Find A Better Alternative to No Win No Fee Debt Collection

Our team of Debt Collection Experts are happy to help with your enquiries.

“No Win No Fee Debt Collection” – What Is It?

No Win No Fee Debt Collection has been handed across the industry for decades by many debt collection agencies.

It suggests that if a debt cannot be recovered (win) then there will be nothing to pay in the end (no fee).

Unfortunately, corporations use this as a marketing ploy to disguise the type of pricing structures they conduct.

Typically these consist of the hiding of fees along the way which turn out to be a large sum at the end of the debt recovery process.

Not only this, but groups working in this sort of way may force their customers into memberships without previously asking.

Having to pay upfront fees is a complete contradiction of what is promised on a no win no fee basis.

The cowboys of the industry will take on a debt regardless of whether they know the success rate is going to be positive or not, which can be extremely harmful to the sustainability of one’s finances.

what is the truth behind no win no fee debt collection?

No Win No Fee Services Are More Expensive

If the debt collection agency has promised you this service, the “no fee” element will notoriously be false.

You may be expected to pay a joining fee, and then charged random fees in quick bursts throughout.

This price-drip method almost always ends up meaning you pay a lot more than you realise.

Similarly to this, you may additionally be charged an abandonment fee should you wish to stop using the company in question or they cannot collect the debt.

What Is The Reputation Of The Agency?

Does the organization you are using have the ethics and traits of an honest debt collector?

You will find that most companies that work off a No Win No Fee Debt Collection Policy will have no licenses or authorisations by regulatory bodies.

For example, our partner Federal Management is authorised and regulated by the Financial Conduct Authority (FCA).

Agencies like this will most likely have a bad reputation when it comes to dealing with debtors and uses unjust methods for the collection of your monies.

At the end of the day, it is you who will have the responsibility for their actions and this could mean the relationship with your debtor is jeopardised.

Alternatives To No Win No Fee Debt Collection

Now that you are aware of the truth about No Win No Fee debt collection, you can see why you should avoid anyone with this label.

At the UK Debt Collection Bureau, we have collated a list of the most compliant and reputable agencies in the UK.

Our list is comprised of some of the most affordable and trustworthy agencies in the UK that offer “No Collection Costs = No Collection Cost To Pay” services.

This is different to No Win No Fee, as they will only take on debts if they believe they can successfully recover the debt in question.

For Commercial Debts, you should use Federal Management and Frontline Collections for Private and International Debt.

Find A Better Alternative to No Win No Fee Debt Collection

Our team of Debt Collection Experts are happy to help with your enquiries.

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