Using Debt Recovery Companies in the UK

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Using Debt Recovery Companies in the UK

Are you owed money from someone who is refusing to pay?

This is a very common situation to be in, and many people across the UK are in this position daily.

This affects both businesses and private individuals alike.

There are many reasons why someone might owe you money.

For example, you may have loaned some money to a friend or family member who needed it when they were struggling.

Or, if you are a business, a client may have chosen not to pay you for goods or services that you have provided.

Regardless of the reasons, you need to resolve an issue of debt before it begins to cause more problems for you.

This is especially true for businesses, as clients that delay payments for too long can put the company at risk.

We asked our collection experts to help us to understand what the key points of using debt recovery companies in the UK are.

Should I Use a Debt Recovery Agency in the UK?

If someone owes you money, you might be unsure of what you can and cannot do.

For example, many people believe that instructing a debt collection agency is something only a business can do.

In reality, private debt collectors help both businesses and individuals.

As well as this, many people are hesitant to reach out to a debt collector as they consider the option as a last resort.

Whilst this perception is understandable, it is often better to contact an agency sooner rather than later.

If you hesitate to collect a debt for too long, it may make the recovery process harder and more expensive.

If you leave a debt idle for a long time, it may take more of your time to take the required steps needed for its collection.

Generally, people tend to choose one of three main options when choosing the best way to collect a debt:

Recover the Debt by Yourself

Attempting to collect a debt alone can, in some cases, be a good option.

Most businesses have some form of credit control in place.

If a client has not paid, the first step in this process is to chase them for payment.

Whilst this can be effective, it may not be a good solution for more complex cases.

Many non-payers will go to almost any length to avoid paying a debt.

If this is the case, then you should seek a professional solution.

If you attempt to recover the debt after this point, it may cost more for you to do so.

Recovering a debt alone can be appropriate in some cases…

…but it is not a permanent solution that you can use for any debt collection situation.

Hire a Debt Collection Solicitor

A debt collection solicitor is another option when you are looking at ways to recover a debt.

Many people look to the court system for justice when it comes to the subject of someone owing them money.

This is another viable method, but it does take a great amount of both time and money to work.

Many of us know that solicitors can be very expensive, with most charging as much as £200 an hour for their services.

This cost can mount up, as each court action case can take months to process.

As well as this, you will need to spend more of your own time to help the solicitor work as they need to.

If the solicitor wins a case, then the debtor may only receive a County Court Judgement (CCJ).

This is a good result, but a professional will still need to enforce the collection of the debt.

This will make the cost to you even greater.

As such, many who choose the path of court action may risk the possibility…

…of the cost of collection amounting to more than the value of the debt.

If this happens, many people choose to abandon the debt and write it off.

This should never be an option, especially as more beneficial and effective solutions exist.

Using Debt Recovery Companies

Instructing a debt collection agency is the best way for you to recover any money that someone owes you.

A professional agency will be able to recover your money promptly.

This ensures that the financial impact you suffer is minimised.

Many agencies specialise in one of the main types of debt collection:

• Commercial debt collection
• Personal debt collection
• International debt collection

A professional debt recovery agency is a better option than the others we have listed here.

They provide the best service possible at a low cost.

The best agencies have a high average debt recovery rate of 90% or above…

…and are regulated by organisations such as the Financial Conduct Authority (FCA).

Finding the Best Debt Recovery Companies

Regardless of whether you are a business, self-employed or acting alone as a private individual…

…if you are using a debt collection agency you need to find the best firm possible.

Finding an agency can sometimes be a challenge, and knowing what to look for can help when making a decision.

This choice is very important, as the agency you instruct will be acting on your behalf.

You must spend a long time searching for debt collection companies in the UK to find the best results. When comparing debt collection agencies it should be considered the same as comparing insurance or the best broadband deals.

Finding an agency that provides the best service levels, an effective solution and provides the best cost can be a trial and error exercise.

Best4DebtCollections provides the UK’s leading comparison service of debt recovery companies.

Our service is completely free and open to anyone.

By completing our 30-second web form, you will receive the best quotes for the recovery of your debt. This will give you a clear idea of what your options are when it comes to debt recovery companies.

Debt Collection Agencies – Frequently Asked Questions