Only Use Professional Debt Collection Agencies
Every single day we hear of the problems caused when less savvy business people opt for the ‘cheapest or the dodgy ‘no win – no fee’ option when it comes to instructing a Debt Collection Agency(DCA).
It is a simple fact that as with any sector or industry, not all Debt Collection Agencies are the same! There are some good and some bad, also some very bad.
Instructing a firm of amateurs for your debt collection requirements can cause untold problems, stress and possibly even worse in some cases. Your sole objective should be recovering the debt in a professional and swift manner with an ethical company that you would be pleased your company is associated with.
There is absolutely no doubt that a Proficient and ethical DCA can be a real asset in terms of maximising the return on your bad debts and saving you time so why is it that people would rather risk their businesses reputation and the value of their debts in the hope it might save them a few measly quid?! Huge gamble where the odds are not in your favour unless you take the right precautionary steps.
Amongst the problems we hear daily are people risking using unlicensed and non limited companies. By using a non limited company or a sole trader that promises the world, you are risking everything. Your reputation, your brand, the value of your debts, your stress levels and your legal liability.
There have been many instances of ‘sole trader’ DCA’s disappearing into the night as there is no accountability. Would you seriously risk using a unregistered plumber of builder? No of course not so why would using a dodgy debt collector?!
Key considerations when using a Debt Collection Agency
- Are they a Limited company & when were they established? – Increases accountability and is a good indicator of credibility.
- Are they appropriately licensed and/or accredited? – DO NOT use a DCA that is not a member of the Credit Services Association or is not regulated by the FCA
- Do they have Professional indemnities? – Any professional DCA will have adequate insurances
- What is their reputation? – Google is a great tool for verifying credibility
- Are clients monies ring fenced? – A DCA went into liquidation last month, resulting in some clients losing many thousands of pounds.
- Do they have professionally trained staff? – Experience of your industry is imperative to get great results and maintain professionalism
- Understand the costs – A new client of ours advised they received just £2,400 from a £8,000 debt after their previous DCA had deducted charges.
The fact of the matter is any old Tom, Dick or Harry can set up a website with a legitimate sounding name and give huge promises that are just not realistic. You have to trust your business intuition and make a decision based upon facts and ‘what has been done’ i.e. reputation, not what some fly by night outfit claims ‘what will be done’.
As in life, there are no shortcut routes to achieving a successful outcome. If you assume that there is ‘no risk’ is using a firm of amateurs then you are in for a very rude awakening! It really will pay to use a Professional Debt Collection Agency.