When it comes to collecting bad/old debt there is not only a list of rules and laws that one must follow but also, a certain level of skill and professionalism must take place in order to be effective and efficient. The following is a list to consider when deciding to outsource your collections or to keep them in house.
1. Collection agencies are monitored by the Fair Debt Collections Practices Act (FDCPA) which ensures that we treat the debtor on the other end with courtesy and respect, allowing them to maintain their personal integrity as we strive to collect your debt. If an agency adheres to this act, your client/debtor should be treated with a certain level of respect therefore representing you well.
2. An effective collection agency does much more than making 1 or 2 phone calls and sending out a letter. At ACM we have a series of letters that we use as the debt moves through our system (and if not addressed closer to legal action). We intertwine those letters with phone calls and messages giving the debtor every opportunity possible to get in contact with us and get the debt squared away. Being members of the credit bureau we will report the debt to their credit which is often a good bargaining tool. We encourage monthly payment arrangements if the debt cannot be paid all at once and have an attorney on retainer if that is the route we need to take. In short, we have a number of resources to locate the person and then get the debt paid. Resources that most businesses outside of this field don’t have the time or expertise to monkey around with.
3. Doing in house collections is only cost effective to a certain point. Most of the time the person doing the collections for any given business has other responsibilities on their plate so the amount of time dedicated to collections, either isn’t sufficient enough to see results or isn’t cost effective as your time is better spent elsewhere. Collections is a full time job. Let us take that burden out of your office.
4. We work on contingency so if you don’t get your money, we don’t get paid. Yes, you will be getting less than is actually owed to you by the time you pay the collection agency but… it is better than nothing at all. Most of the time when you send a debt over to a collection agency you have already written the amount off so anything you get at that point is just a bonus.
5. A good collection agency views themselves as an extension of you. It is important that you choose an agency with this mindset because you can ensure that your customers will be treated with a certain level of respect. We have found that by using the Golden Rule as our guide, people are more willing to work with us and our rate of collection is increased. We are an extension of your business and therefore will treat your clients the way that you would want to be treated.
There are many more reasons why it makes sense to use a collection agency rather than keep it in house, but these are just a few. If you would like to know more, please call our office and one of our associates would be happy to speak with you!
