Five Secrets to Choosing the Right Debt Collection Agency
Here are five secrets to choosing the right debt collection agency:
The Five Secrets
- Do your research. Before choosing a debt collection agency, first read online reviews, then check with the Better Business Bureau, and finally talk to other businesses that have used one.
- Get quotes from multiple agencies. Because pricing varies, comparing quotes helps you evaluate cost and service side by side.
- Make sure the agency is licensed and bonded. Every debt collection agency must carry a license and bond in its state. This protects you if the agency fails to collect your debt or violates the Fair Debt Collection Practices Act (FDCPA).
- Ask about the agency’s success rate. This is the percentage of debts an agency actually collects, so look for a consistent track record.
- Make sure the agency knows the FDCPA. This federal law regulates how debt collectors operate, so choose an agency that follows it and collects your debt fairly.
Following these secrets will improve your odds of choosing the right debt collection agency for your business.
Additional Tips to Keep in Mind
- Ask about fees. Most agencies charge a percentage of the debt they collect, so confirm you’re comfortable with that rate upfront.
- Ask about policies. For example, find out how the agency handles communication, payment plans, and credit bureau reporting.
- Get everything in writing. Once you choose an agency, therefore, put its fees, policies, and any agreements you make with them in writing.
At New World Collections we are experts in all aspects of bad debt recovery. We have the answers! Contact Us
