Collection agencies are in the news again, as the Consumer Financial Protection Bureau (CFPB) recently proposed a list of new regulations for collection agencies.
At issue are complaints filed by debtors who have felt bullied by companies attempting to collect.
And while members of the CFPB believe that new guidelines will provide extra protection for individuals and small businesses, professional debt collection agencies are on record stating that the new rules will make it harder for them to collect on behalf of their clients.
Proposed new guidelines
Is this another example of people shirking their responsibilities of paying companies what they rightfully owe? Or another attempt to prevent flagrant abuses of CFPB guidelines by fly-by-night collection agencies?
Of note is the fact that debt collection complaints make up almost a quarter of all issues reported to the CFPB.
If the new guidelines are approved the following changes would take effect:
- Limit how collectors can contact individuals.
- Put rules in place to protect individuals from debts that do not exist.
- Increase compliance costs.
Of note to small businesses that need to collect outstanding invoices, the third item on the list is most noteworthy.
For years we have advised business owners to outsource their collection headaches to professional and licensed outside agencies for the primary reason of compliance and limiting risk of lawsuit.
As compliance costs escalate this could affect how much you have to pay an outside agency to collect uncollected A/R on your behalf. However, any increased compliance cost would still be less than being taken to court by a group of former customers or clients seeking to avoid paying what is owed.
The bottom line?
When you need to collect it makes sense to hire a professional collection agency with a solid and proven track record collecting outstanding revenue from businesses like yours.
Find the right collection agency today
Save time, money and aggravation by hiring a professional who can help you collect some (or all?) of your outstanding revenue.
Click the link and compare free collection agency quotes today.
After all, when you get down to it you really have two choices:
- you can keep doing what you’re doing (and hope for a different result)
- you can work with a commercial collection agency that can help you recover what’s rightfully yours.
Either way it’s your money… you decide.