Guide To Choosing A Debt Collection Agency

Debt is a sensitive, but important, topic that needs to be discussed openly in society. When you borrow money or procure goods on credit, it is expected that you will pay for the goods or repay the money according to the terms and conditions you agreed with the supplier or lender. If you fail to honor your end of the deal, the lender or supplier can invoke debt recovery clauses in the loan agreement or sale agreement. Consequently, the creditor can decide to hire a debt collection agency to help them recover the debt. 

Why Hire a Debt Collector?

The main reason for hiring a debt collector is to recover unpaid debts. This will save you a considerable amount of time. After all, you have better things to do than chase debtors and try to force them to pay back your money. The job is best left to professionals who have the legal expertise, experience, knowledge, time and resources needed to help you recover bad debts. Since there are many debt collection agencies, it may be challenging to find the right agency for your needs. You may need to spend a little bit of time comparing all the top debt collection companies in the UK by considering the following factors:

i) Accreditation

Only registered, accredited and regulated debt collection firms should be added to your shortlist. If a debt collector does not seem to be regulated, you should avoid them. You do not want to hire a firm that normally uses illegal tactics to recover debt as they can land you in legal problems. It is useless to recover your debts fully, but end up losing more money fighting a lawsuit filed against your business. Therefore, the first thing to check is whether or not a firm is registered, regulated and accredited. 

ii) Experience

Debt collectors with plenty of experience in the industry understand consumer behaviour. They also know every possible reaction that debtors may have during the debt recovery process. More importantly, however, they know the expectations of clients. To get the best possible outcome without embarrassing debtors, it is best you work with an experienced debt collection firm. The number of years a firm has been in business, types of clients they have been serving and types of debts they have previously recovered are all key factors to be taken into consideration when conducting your research. 

iii) Fees and Commissions

Obviously, debt collectors are usually paid for their services. However, there is no need of paying a debt collector if they fail to recover debt. Therefore, the fees or commissions they charge should be based on the amount of debt they recover. In addition to that, the fees and commissions charged should be competitive. For this reason, you should do some research on the rates charged by different debt collectors and give special consideration to the most affordable debt collectors. 

iv) Reputation

It is recommended you do a bit of research on the reputation of the debt collectors on your list. This is because you are looking for a trusted and reliable debt collector with many glowing reviews and plenty of testimonials.