| What Are The Key Points |
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| What Is No ‘Win No Fee Debt Collection’? |
| 5 Facts to Consider for No Win No Fee Debt Collection |
| What are the Alternatives to a No Win No Fee Debt Collection Agency? |
As the old saying goes “if something is too good to be true, then it probably is”.
You may think you have nothing to lose by using a cheap back street No Win No Fee Debt Collection company, but by using one you might end up dealing with even more issues than just a debt!
Whilst British Business remains in the grip of tight economic conditions, over the past couple of years, there has been a rise in the demand for Debt Collection Companies advertising themselves as operating a ‘No win No fee Debt Collection’ policy when this clearly is not the case. As this spurious practice continues to grow, so does the misinformation surrounding this ‘no win – no fee’ culture within the Debt Collection Industry.
The position of some is that as they seemingly pay nothing initially, the Debt Collection firm in question will work harder to recover the money and that there is nothing to be lost, only gained. The simple truth of the matter is very different and should be taken very seriously.
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What Is No ‘Win No Fee Debt Collection’?
The No Win No Fee Debt Collection term is simply being used by some as a marketing slogan in the Collection Industry to mask over a hidden ‘drip pricing’ structure and quite often companies that advertise themselves as ‘no win – no fee’, require a membership and/or joining fee which straight away, is an immediate contradiction of their key selling point which should give a clear indication of what is to follow.
Often these companies will charge exorbitant commission rates, quite often as high as 50% (even higher in some instances) and will have hidden costs contained within their services. It is also common that these type of companies are fronts for firms of fee-earning solicitors who will simply wish to matter to proceed to litigation so they can begin to apply their hourly fees (Average £250 per hour) as well as any other costs incurred therein.
There have been instances where a debt has been collected and the actual amount that was owing in recovery fees was nearly 3 times what the actual debt was in the first place
Other ‘No win – no fee’ companies have ties with Debt Management and Insolvency firms looking for free, direct and easy lead generation as once details of a debtor are supplied, they will bombard them wit