No Win No Fee Debt collection is very much something that is too good to be true. No Professional business can operate without the knowledge they will not get some form of payment for their efforts. Whilst there needs to be a carrot and stick situation, nobody can simply work for free.
The No Win No fee title comes from the personal injury industry mainly. It is easy to make such a bold claim when you are almost certain of being paid. In the question of personal injury, if there is no question of liability then the NWNF law firm is usually going to get paid. Usually by way of commission and legal costs. However, this too can also carry risk of how much the real cost of no win no fee is.
The same cannot be said for debt collection. No Debt Collection Agency can claim they are 100% going to collect on a debt. It is impossible to say as debt collection is not usually a straight forward process. Especially true in the case of a Personal debt Collection.
Careful consideration should be applied if you are looking for a no win no fee debt collection solution and there are many factors to consider.
No Win No fee debt collection – No fee, No Win?
It is safe to say a minimal amount of effort will go into a no win no fee debt collection service. Like any kind of business, their objective is to hopefully make a profit. They will only invest a certain amount of time and effort into each case they deal with. This is usually mitigated by playing the numbers game.
The percentage game is played. If you are expecting a persistent and relentless debt collection strategy, sorry but that is not going to happen.
Obviously the more effort that is applied to recovering a debt, the better. It goes without saying however some people see it differently.
A couple of emails or a phone call does not cut it in NWNF Debt Collection. Persistence is key to a successful debt recovery in all case. Obviously sometimes, a gentle nudge will prompt a debtor to pay but in our experience that is rarely the case.
The old adage is you get what you pay for and if you do not pay, do not complain if you get nothing at all. Cheap is not cheerful when it comes to delivering a professional service.
No Win No Fee Debt Collection – The potential pitfalls
Whilst the slogan ‘No Win No fee’ appears to be great, it can come with potential problems. Questions any person or business owner should ask themselves questions such as:
- Will they be professional?
- Will they be overly aggressive?
- What will actually be done?
- Am I liable for costs if they don’t collect?
- Will their actions be legal?
- Are they appropriately licensed?
On that note, it is important to recognise that you will be liable for their actions. Any improper conduct, actions or demanding money with menace, and you can be held responsible.
When seeking a debt collection agency to work with you should what to know will they be:
- Honest, ethical and transparent
- Have a secure ring fenced account for clients monies
- Have a disregard for your Business image and reputation
- have hidden fees or abortive costs
- Inform of progress and when they have collected any money
- Solvent, experienced and professional
There are a whole stack of possible ramifications that can arise from collaborating with cowbody debt collection firms. This is factual based advice.
There are also instances where a debt is collected then the money never passed on to the instructing party. Rogue Debt Collection firms have made the national tabloids in the past with tales of stealing clients monies.
It is no lie to say that choosing the wrong debt collection solution can be much worse than doing nothing at all. If you need a professional debt collection, contact us today.
At Best4DebtCollection.co.uk we work ONLY with Professional and proven Debt Collection Agencies.