Many business owners and creditors can be extremely hesitant to engage the professional services of debt collectors in Manchester to retrieve accounts that have not been paid. They’re typically reluctant because they worry about maintaining the relationship with their clients and the risk that hiring debt collectors could undermine that relationship.
The first step is to think about whether the client is one they can trust if they’re not paying in time? However, if they find a good debt collection agency that understands the relationship that you have with this particular client and adjust their methods to meet the needs of. This means that the accounts can be successfully recovered and relationships could remain with the customer if they want to. However, if they do not then a stronger approach can be used by the debt recovery company to collect the money however, it shouldn’t be the same method of collection for every case. Choose the company you would like to use with care because there are plenty of scammers, fly-by night agencies and other companies who can rip you off.
Types of Debt Collection Agencies in the UK
There are numerous Debt Collection agencies in the UK Some of these are owned or run by large firms, and some of these companies are based on the United States or somewhere else in Europe and they also have contact centers abroad in countries like India, the Philippines, India, Poland or in other countries.
These large organisations are focused on a high volume of accounts with a limited number of customers, which is typically high street banks or credit card companies. They also handle utility bills. These types of organizations are not able to handle an enterprise that is unable to give the large number of collections each month or year. The relationship between the debtor and the creditor will be non-existent as the creditor will already paid off the debt and it will be not a concern for them to lose this customer.
Other firms that deal with debt collection only deal in debt that they purchased and are referred to as Debt Purchasers. They purchase debt from large companies such as, high street banks as well as credit card companies, pay day loan companies or utility companies. Sometimes, they will only pay one cent or perhaps a bit more for debt that they now have. They make their profits with the hope that they can recover more money from the debtor than what they have paid in the first place for their debt. The creditor who originally incurred the debt again will have no interest in keeping any sort of relationship with the debtor because they will not want to be dealing with them anymore.
There are also specialists Debt Collection Agencies to help and assist all kinds of diverse businesses. Some agencies may only operate in specific areas such as Construction as well as Oil & Gas, others may cover every area. These kinds of agencies provide the most personal service to you as their client and equally for the debtor. Because of this, they typically have a very high success rate since they can concentrate their attention on each instance rather than tackling the complexities of a large number of cases. They’re typically small to medium size Agencies and are able to personalise their services to your needs.
What is the best way to choose a good Credit Collection Agent?
If you aren’t sure of the agency you want to use then you can ask the agency for references from a few of its existing clients. We would suggest that you actually phone the client yourself once you have received the agency’s references in order to verify that it’s true.
The agency for debt collection should be well established and should have been in operation for some time.
Trustworthy, reputable and professional Debt Collection Agencies will work on a No Collection fee basis. They will not charge you any “upfront fees” or “registration costs” This is simply an opportunity to collect funds from you. A number of agencies will collect this money and you could not hear back from them again. There have been horror stories in this industry of clients giving the debt collection company sometimes in excess of £2000.00 upfront to be able to collect cases in excess of £10,000. If an Debt Collection Agency has been trading for years on a No Collection No Fee Basis, then you’ll see they’re skilled in their work as they don’t make any money until they get your money to the lender.
You should request the terms and conditions of debt collection agencies Terms and Conditions before asking them to conduct the collection on your behalf, or signing any documents. The company should be able to clearly state their fees in their Terms & Conditions and there should there be no hidden costs.
The Financial Conduct Authority recently took over the regulation of Debt Collection industry in the UK from the Office of Fair Trading. You should never use an Debt Collection Agency who are not registered with the Financial Conduct Authority.
Each agency needs to obtain the correct “permissions” from The Financial Conduct Authority in order to be allowed to get debts. All agencies will be issued an authorization number from the Financial Conduct Authority which is sometimes found on the agencies website or their stationery etc but you should request for the number and ensure whether it’s authentic on the Financial Services Authority website.
Commercial Debt Collection – Need more advice?
If you conduct the simplest of check-ups, it will enable you to choose the correct debt collection option for you, which will offer the highest chance of success and won’t cost you a fortune, or you could be more on the hook than you were before.
To find out more about our services, do not hesitate to contact us.
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