7 tips to Find the Best Debt Collection Agency
More and more companies are finding that offering credit terms expands their customer pool. But with credit terms comes the issue of the increased number of debt defaulters.
This is where debt collection agencies come into the picture. These agencies take care of recovering all the debts which are past the due date by your customers and lets your business focus on more important activities. By hiring a debt collection agency you can sit back and watch the professionals do their jobs.
Let’s take a look at these few tips that will help you in selecting the best debt collection agency.
Here are 7 tips to select the best debt collection agency
Do Your Research
Each debt collection agency has expertise in certain areas like commercial loans, medical bills, auto loans, and etc. You need to first check your requirements like – where are most of the loans, is the agency licensed in those states, does your portfolio (accounts, type of debt, size of debt) fits the agency.
It is rightly said that experience is a teacher of all things – the same goes for debt collection agencies. If you want guaranteed good results, then go for an agency that has been in business for at least 5 years. Also, It’s a good idea to pick an agency that is accredited by the Better Business Bureau and has an A rating.
Debt Collection Compliance
A professional debt collection agency will always choose best practices that follow all state and federal regulations. Reputable agencies like First Credit Services, take compliance very seriously and meet proper messaging and compliance standards while communicating with your valued customers. Choosing the right agency will help uphold your brand image and minimize your liability exposure.
The best debt collection agency will also be equipped with the best technology in the industry. When assessing the technologies of a debt collection agency, make sure they are incorporating an omnichannel platform that employs modern forms of communication. Traditional methods like calls and letters are not as effective anymore. It’s also important to verify that the agency utilizes data analytics and machine learning tools like First Credit Services’ EngageRight to ensure contact optimization and prioritization.
In many cases, the debtors might try to skip town to avoid paying their dues. To deal with such cases good debt collection agencies use the practice of skip tracing which equips them with access to several databases which allow them to track down the debtor.
Fees of debt collection agencies can vary greatly. Going for a company that has a commission model can be a good option. In a commission model, the collection agency charges you a percentage of the debt collected. This eliminates the burden of paying to the collection agency if the target is not achieved. Check for all the details while selecting the collection agency but keep in mind the lowest rate does not always mean the best results. So choosing a debt collection agency with the lowest fees might also mean choosing one with that will provide the least effort or not have a lot of experience
A common mistake of many collection agencies is a failure to provide a routine report of collections. Check with the collections agencies, if they are providing real-time reporting, as it will give you full visibility into everything that is happening with your accounts.
Dealing with debtors can be challenging and time-consuming. It can hinder your business activities by draining your resources. In such cases, it is best to outsource your collection and hire a debt collection agency to make your business more efficient. First Credit Services can be a good option for your collection work -it has 25 years of compliant experience in the collection industry.
Working with a good debt collection agency like First Credit Services will maximize the amount of debt collected and returned to you with complete transparency while ensuring that you stay on good terms with your clients. They provide many services like First Party collections and Third Party Collections. Through their omni-channel platform, they provide a unique experience to each consumer, thus ensuring a smooth debt collection process. Furthermore, they also provide other parallel services like Customer Engagement Outsourcing and Extended Business office under the same hood.