Because of the struggling economy, businesses are finding it hard to keep their profits high and their expenses low.
In fact, many financial institutions are now seeking the help of collection agencies to help gather as much lost revenue as they possibly can. But like any industry – especially one that concerns money – you’ll want to avoid collection agencies that engage in unlawful practices.
So what can you do?
You can always follow these three tips on how to you can choose the right collection agency for your needs.
Three tips to find the right agency
The first thing that you need to do when hiring a collection agency is to check the authenticity of that particular agency.
You can do this by contacting the Attorney General’s Office. A simple call will suffice. Give them the name of the collection agency you’re thinking about hiring and ask a few details about them. For instance, you can ask if there are complaints and cases against that particular agency.
Remember to avoid collection agencies with malpractice complaints including FDCPA or Fair Debt Collection Practices Act violations.
You may also want to check the BBB and ask about any past or pending complaints.
The second thing that you need to take note of is when collection agencies tell you that they’ll give you 100 percent of your money, without charging professional collection fee.
Though this sounds really promising, be careful as this arrangement can only be justified when the cost is “expressly authorized” by the debtor. This means that it is approved by the law, with the legal consent of the debtor.
This is a case where any ordinary contract or agreement will not be honored by the court.
There are only a few type of accounts that allow the cost of hiring a collection agency to be shouldered by the debtor. These include dishonored checks, government debts and personal accounts with a duly signed and express authorization by the debtor.
Of course, nobody would want to lose money to collection agencies, especially because there are a few that charge high fees. So be very clear about the costs involved when hiring a particular agency.
Ask for references or testimonials.
You can also ask to see what their track record is when collecting on past due accounts for businesses such as yours. Other questions you might want to ask would be their overall collection process. For example, do they contact your overdue accounts using your company name, or their own.
Finally, take a clear look at your overall debt situation.
If you can confidently say that collecting some lost revenue is better than nothing, then by all means it’s time to consider hiring a collection agency.
Find a collection agency today
To find the right collection agency for your business click the link below and get your free quotes from qualified and reputable companies…
Click and compare free collection agency quotes today.
After all, you really only have two choices:
- you can keep doing what you’re doing (and hope for a different result), or
- you can hire an outside company to help you collect the money you rightfully deserve.
Use the link above for your free quotes, or click to find commercial collection agencies for your State or Metro area that can help you recover lost revenue starting today.
Either way the choice is yours…