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Oct 31 2018
Debt Recovery

Three reasons debt collection agencies provide a vital service

When mentioning debt collection agencies to members of the public, on occasion the reaction can be fairly negative. People very often have a stereotypical idea of the burly and threatening debt collector with his shaved head and imposing build, scaring the life out of old-aged pensioners or other vulnerable people.

 

There is very often also a notion held that debt collectors work only on behalf of banks or big-business organisations – companies who could very easily afford to lose such amounts without it affecting their business model.

 

This is very far from being the case, however, and in actual fact, debt recovery agencies work on behalf of a wide range of clients and individuals – the vast majority of whom simply cannot afford to have their clients relinquishing their obligations to pay for what they have bought.

 

These organisations and individuals can include landlords, local authorities and councils, self-employed people and sole traders providing a service, as well as private individuals.

 

So, far from being a menace, legitimate and fully-registered debt collection agencies actually offer a vital service to the community in combating the scourge that is deliberate non-payment.

Here are three reasons why this is particularly the case.

 

1) Small organisations can go out of business

If a small business or self-employed person/sole trader is consistently finding themselves having to deal with clients who do not pay their bills on time, it’s very possible that they could end up going out of business without the assistance of a good collection agency. Doorstep collections and debt recovery services are crucial in making sure that small traders receive the money that is owed to them, so they can carry on trading.

 

2) Organisations may have to lay off staff

Another reason debt recovery companies are vital is that when they are not receiving payment for services rendered, organisations and businesses may very well have to find other ways of compensating – and one way might be to have to lay off employees who they would really rather not lose if the circumstances were different.

 

3) Non-payment for services given causes great stress

Finally, one more good reason for the existence of debt collection agencies is that not receiving payment is a real hardship on those to whom the debt is owed – and it can cause significant financial and psychological misery. This is an aspect of the non-payment of debts that is looked at all too little, but nonetheless, the suffering caused by those who consistently fail to pay their debts is very real.

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