The ultimate checklist when choosing a collections agency
Before you choose a collections agency to work with you need to consider the important factors and ensure they have the right record, reputation and license to operate. Here we explore the ultimate checklist to follow when choosing a collections agency.
1. They meet the licensing requirements and are properly certified
Most importantly you need to ensure that the debt collector is licensed, certified and legally allowed to operate in collections.
2. They are fully insured.
You should expect a minimum of £1,000,000 of professional indemnity insurance just in case something goes wrong.
3. They are able to collect debts internationally
Having a global reach and an understanding of debt collection in a wide range of territories is important. You will often find that debtors leave the country or keep their cash elsewhere, meaning that this ability is vital in recouping losses.
4. They have good references
You should also ask to see references from previous arrangements that they have held. You should look for solid, reputable and verifiable references that can assure you they are capable of completing collection jobs professionally.
5. They follow policy and guidelines for correct collections practices
It is important that the debt collectors do their collections by the book. While it is not your company carrying out collections, it is your company that will be tarred with the same brush as the collections agency.
6. They have a regular remittance procedure
Remittance practices can vary massively so it is important to know when you will get reimbursed for the debt. Debt collection is useless if it then takes you months to get it back from the collectors.
7. They have relevant tenure
Banking on experience is worthwhile when using a debt collection agency. If they have been around for a long time then this means that they are doing things right and will have a greater rate of success in recovering your debt.
8. They have a respectable review
People having debt collected from them will always be unhappy but there is still a need to look at the feedback and reviews left by those who have had debt collected from them. Look out for any red flags referring to use of force or violence as these can indicate potential problems that you do not want to be involved with.
Complete this checklist before using a collection agency and you’ll be able to enjoy a better service and a higher rate of recovery.