Tips to Chose a Debt Collection Agency that will Represent Your Business Well

Need a debt collection service, but not sure where to start? Overwhelmed by the options provided by various collection agencies in NC, SC, VA, GA and other SouthEast stateS?

Relax. These guidelines will help you make an informed decision.

First step… evaluate their services, procedures, and policies. In other words, what do they do and how well do they do it?

A good agency has well established practices and highly trained employees. Investigate when and how often they work accounts and what other services they provide, like skiptracing to locate debtors with outdated contact information and account forwarding if they’ve moved out of the area.

Find out what kind of technology they use. How user friendly are they to both you and your debtors? You want an agency that offers convenient channels of communication and allows you to easily track their progress and access account information.

Do they have a strong working knowledge of your industry? For example, in the strongly regulated medical field, your collectors need to know common terminology, general health insurance information, and HIPAA laws.

Second step… visit their offices. Familiarize yourself with their day to day operations, check their professional credentials, and ask for references. Find out what degree of training their employees get and whether it’s on-going. Make sure they have policies in place to ensure compliance with the Fair Debt Collection Practices Act and all other government regulations.

Look for agencies with high recovery percentages and rates. Avoid those with up front and/or annual fees. Paying cheaper fees for an agency with a poor rate of recovery is not cost effective.

Remember that you’re paying for a service… to recover money that’s owed to you while protecting your professional reputation. If an agency can’t deliver on that basic need, they’re not worth your investment.