Many creditors or businesses may be quite hesitant about engaging the professional services of a debt collection company to collect accounts that have not been paid. They’re typically reluctant because they worry about maintaining the relationship with their clients and whether hiring an agency to collect debt could damage that relationship.
In the first place, they should ask themselves is this client really a good customer if they’re not making payments in time? However, if they find an efficient debt collection company and they are able to understand the relationship that you have with this particular client and adjust their approach to suit. This means that debts can be successfully recovered and relationships could be maintained with the client if they wish to, if they don’t then a stronger approach can be adopted by the debt recovery company to collect the money, but it should not be one style of collection for every case. The agency you wish to use with care as there are a lot of rouges, fly by night agencies and other companies who are able to rip you off.
Types of Debt Collection Agencies in the UK
There are many Debt Collection Agencies in the UK, some of them are part or fronted by huge firms, and some of these companies are based within the United States or somewhere else in Europe and they have contact centers abroad in countries such as the Philippines, India, Poland or other places.
These big companies are focused on a large number of accounts with a limited amount of customers, typically high street banks or credit card companies. They also handle utility bills. These types of organizations do not have to deal with businesses that are unable to send them large numbers of accounts for collection each year or month. The relationship between the debtor and creditor will be non-existent as the creditor has completed the repayment of the debt, and it is of no concern to them to lose the client.
Other firms that deal with debt collection Leeds only deal in debt that they purchased They are known as Debt Purchasers. They buy the debt from large organisations including high street banks or credit card companies. They also payday loan companies, or utility companies. They will pay sometimes only 1 cent in pounds or even a bit more for the loan that they own. They earn their money in the hopes that they will get more money from the debtor than the amount they paid to settle the loan. The original creditor for the debt again will have no interest in maintaining any sort of connection with the debtor, as they will not want to work with them in the future.
There are also specific Debt Collection Agencies to help and support all sorts of various businesses. Some agencies may only operate within specific fields like building or Oil & Gas, others may cover every area. They provide the most personal service to you as their client and in addition, for the debtor. Due to this they usually have a very high success rate due to the fact that they focus their attentions on each individual instance rather than tackling many cases. They tend to be small or medium size agencies which allows them to personalise their services to your requirements.
How do I choose the right Debt Collection Agency?
If you’re unsure about the agency you wish to work with, you may request references from a few of its current clients. We recommend that you contact the client after you’ve received the reference from the agency, just to check that it is genuine.
The agency that collects debts should be established and be operating for a long time.
Professional, reliable, and trustworthy Debt Collection Agencies will work on A No Collection fee basis. They won’t charge you any “upfront charges” or “registration fees” but this is just an opportunity to collect money from you . A many agencies will charge the fees and never hear from them once more. There have been terrible stories in this business of customers paying the debt collection agency in excess of PS2000.00 in advance to collect their cases up to PS10,000. If you know that a Debt Collection Agency has been operating for a long time on a No Collection – No Fee Model, then you’ll see they’re excellent at their job as they do not earn any money until they get your money against the person who owes you.
You should ask to see the Terms and Conditions before instructing them to conduct a collection for you or signing any paperwork. The agency must have clearly stated their rates in their Terms and Conditions, and there must not be any hidden charges.
The Financial Conduct Authority recently took over the regulation of the Debt Collection industry in the UK from the Office of Fair Trading. Do not ever use a Debt Collection Agency who are not registered with The Financial Conduct Authority.
Each agency needs to obtain the proper “permissions” from The Financial Conduct Authority in order to be permitted to be able to collect debt. Each agency will be issued an authorization number from the Financial Conduct Authority which is frequently found on the agency’s website, or on their stationery, etc However, you should inquire for the number , and make sure whether it’s authentic on the Financial Services Authority website.
Commercial Debt Collection Need more advice?
If you do some simple check-ups, it will enable you to select the right debt collection service for you, which will offer the highest performance and won’t cost you a fortune, or you could end up paying more in debt than you were before.
For more details on our services please do get in touch.
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