Step I - Choosing A Debt Collector
Selecting a credit debt collection agency is maybe the most tough and crucial job. Some factors you should think about while picking a debt collector are:
- Experience and professionals
- Geographical presence
- Fees and charging model
- Consumer referrals
- Debt Collection Agency Solutions has actually covered this subject in depth through numerous free collections reports and short articles on this website.
Action II - Working With the Debt Collector and Establishing Procedures
Once you choose the debt collection agency, the very first 2 actions you need to take are:
Enter into a contract with the agency;
Establish processes on how you are going to interact with the agency.
An agreement is the legal file and your legal experts will, naturally, prepare it properly. Just make sure that you include essential provisions such as confidentiality and non-disclosure. You are likely to pass sensitive info to the collection agency such as your balance due, client contacts, services and product prices, etc. to facilitate faster debt collection. You want to be sure that this info does not fall in the wrong hands.
Establishing procedures is a crucial step in handling the debt collection agency. The success or failure of your collaboration will depend a lot on how well-defined your processes are and how strictly they are followed. Important processes you need to specify are:
Internal procedures: You need to put in place a clear procedure on specifying uncollectable bill and referring the case to the debt collection agency. You do not want to refer the case to the collection agency before you make a sincere effort to collect the dues internally.
Information transfer: How will you move the details to the debt collection agency about your fees and defaulting customers, and how will you get the details from your debt collector? Debt collection software can make the information transfer process simple and protected.
Third party dealing: As mentioned previously, it is crucial for you to guarantee the security of the info you give to the debt collector. The debt collector may use several of its involved companies to get details about defaulting consumers. Thus you need to set up a clear procedure on just how much info they can share with such 3rd parties.
Interaction: You need to establish single point contacts for interaction within the company and the collection agency. In debt collection practices, the timing of interaction is incredibly important and for this reason it will go a long way in deciding the success of your debt collection procedure. Once again, the importance of debt collection software can not be overstated here.
Step III - Efficiency Tracking
Once all procedures are set, start monitoring the efficiency of the collection agency. When dealing with a collection agency, this is a continuous process. Crucial specifications to monitor are:
- Variety of cases referred to the credit debt collection agency and percentage of cases effectively solved by them.
- Portion of debt recovered by the debt collector from all cases referred.
- Percentage of debt recuperated by the debt collection agency from fixed cases.
- Percentage of amount paid as fees/commission to the collection agency to the total uncollectable bill cases referred to them.
- Typical number of days taken by the debt collection agency for full/partial credit collection.
* How well do the collection agency professionals handle your clients?
* Has the debt collector followed all legal requirements mentioned in the Fair Debt Collection Practices Act?
* Has the collection agency surpassed the provisions of the Fair Debt Collection Practices Act?
* Has the debt collection agency followed all procedures and guidelines set by you?
Action IV - Agreement Closure
Hopefully, the picked collection agency will 888-591-3861 work best for you. However if it doesn't, then you need to move all your debt collection processes from the agency. You need to remember the following crucial points when you are ending the contract:
Confidentiality and non-disclosure stipulations apply after completion of the contract with the debt collection agency along with its workers. The debt collection agency returns all files related to your company and damages all information related to your service from their information storage.
You are likely to pass sensitive details to the collection agency such as your account receivables, customer contacts, product and services prices, and so on to facilitate faster debt collection. Setting up processes is a really important step in dealing with the collection agency. The collection agency might utilize one or more of its associated companies to get info about defaulting consumers. In debt collection practices, the timing of communication is very crucial and hence it will go a long way in choosing the success of your debt collection procedure. If it does not, then you require to transfer all your debt collection procedures from the agency.