Why a debt collection agency’s level of experience is so important
Choosing a debt collection agency to represent your business can be a difficult process. There are many things to consider, and many businesses fall in to the trap of letting cost be the thing that ultimately guides them. There’s no doubt that an affordable debt collection service is important, but there’s something even more important that’s worth investing that little bit more in – experience.
Here’s why experience matters in debt collection.
The right approach
Debt collection can be a tricky business. No two debts are the same, no two lenders are the same, and no two debtors are the same. This means there’s no such thing as a “cookie cutter” debt collection service. But a debt collection agency offering an unusually cheap service may be skimping on what’s really important. Time is necessary to understand the individual details of the case, everyone involved, and determine the right approach.
This is where experience is pivotal. An experienced debt collection agency will know instinctively how to handle the case with the tact it requires. Debtors can be difficult, and debt collections can occasionally go awry – it’s essential the people you trust to represent you have the experience and training required to diffuse an escalating situation without sacrificing their professionalism.
Experience carries with it an understanding of the technicalities of the debt collection process that you simply can’t find any other way. Knowing the appropriate legislation and regulatory guidelines that govern debt collection ensures not only that you get a better service, but that your business is properly represented. Understanding those regulations takes time – there’s no “fast track”.
For example, First Capitol can claim up to 8% interest per year on your behalf, due to section 69 of the County Courts Act 1984. Late payment interest and compensation can also be claimed under the Late Payments of Commercial Debts Regulation Act of 2013. Knowing what you’re entitled to is a big part of a professional debt collection agency’s service.