Can I Use a Debt Collection Agency

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Can I Use a Debt Collection Agency?

Regardless of the type of debt you are owed, if someone refuses to pay you must take action. Failure to do so can leave the original creditor in a difficult financial position. In some cases, it can put their entire enterprise at risk.

There are many reasons why somebody might need debt advice. For example, they may have an issue with recovering payment. They might have done work for a client that has not paid. Or, debt has been passed to a debt purchaser, who now wants to recover that amount.

No matter what the case is, collecting debts is something that most people will need to do at some point. The confusion begins when people begin looking at how to actually perform the debt recovery process.

Questions are asked, such as: “can I use a professional?”, or “is it better to do it myself, or hire a debt collection agency”. In most cases, the best solution is to hire the services of a professional debt collector. They will have all of the necessary skills and expertise to carry out the task quickly.

However, many people are reluctant or simply worried that the cost of doing this will be too much for them. Some people have hired professionals in the past, but they have often been too expensive or produced few results. Other people are simply unaware that this option exists.

If you are asking “can I use a debt collection agency”, the answer, more often than not, is, “yes!”.

We asked our debt recovery experts to explain what the benefits of a collection agency were. They also outline who can use their services.

Instruct a Debt Collection Agency – The Benefits

If the person that owes you money has failed to pay the debt, it is time to begin the collection process. Many people may think of taking court action or will seek to sell the debt. However, a debt recovery agency provides a more beneficial option.

Low Cost

Whilst instructing a debt collection agency does incur a cost, this is drastically lower than other methods such as court action.

It is common for agencies to operate on a commission pricing structure, subject to the unique circumstances of the case. For example, our award-winning partners have some of the lowest commission rates available, starting from as little as 6%.

This cost should always be taken into account when you are making a decision. However, it is often the lowest priced and quickest way to recover a debt.

Effective and Proactive

Alternative methods of debt collection are effective in certain cases. However, a good debt collection agency will have a proven track record of success. For example, court action has always been a way to recover debt> The disadvantage is that there is always the risk that a case may be lost.

If the debt has been sold to another country, there is no way for the original creditor to get the full amount. Instead, they must settle for a drastically lower value from what they were offered.

Our partners will conduct a free, full pre-action appraisal when you first reach out to them. This will assess the chances of the debt’s recovery. If it is possible, the case can proceed, with the agency working towards a successful outcome.

The best debt collection agencies are experts at recovering owed money. Many often specialise in specific locations, working sectors or types of debt. For example, some focus on collecting private debt in England and Wales. Whereas others collect international commercial debt such as credit card bills for corporate entities.

As well as this, many agencies take proactive measures to ensure they deliver the best services possible. One of our partners is even the only agency in the UK to be regulated by the Financial Conduct Authority (FCA).

This level of commitment ensures that the best agencies deliver the most successful and professional service possible.

Professional and Conscientious

For a debt collector, the main goal will always be recovering the owed money. As well as this, a good debt collector will take every step possible to resolve the matter in an amicable manner. For businesses, this is critical. If the collections process is handled poorly, then the business/client relationship would be damaged forever.

Instead, our award-winning partners ensure that every case is handled with discretion and professionalism. This allows them to benefit from the increased revenue available from a good business relationship.

As well as this, the debtor’s position should always be taken into account. It may be that there is a valid reason why the debtor has not paid. For example, they may have fallen into a bad financial position, and so a payment plan must be set up. In this scenario, the debtor makes smaller payments towards the debt as opposed to paying the full amount at once. 

With a conscientious process applied to all cases, a good agency can recover owed money and maintain client relationships. This is as well as boosting the reputation of the original creditor.

Finding a Debt Collection Agency

If you are asking yourself, “can I use a debt collection agency?”, then the answer is usually, yes! 

Finding the best agency for your specific circumstances is often a time consuming and challenging task. Best4DebtCollection provides the UK’s leading debt collection comparison service.

Complete our easy to use web form today – our service is completely free and open to anyone.