How to check the validation of debt collecting agency?
Debt is something your business will face from time to time because most business works on credits and dues. People often trust big and old clients to pay the amount sooner or later. If they pay sooner, it is well and good but if later the option is, it could change to never.
People often in good faith are hesitating in asking for payment collection and that’s when Debt collection agency comes into the picture. Hire a debt collector could benefit your company with the development, time-saving and reputation management. So, here are the things you must check before hiring a debt collector:
- Certification Validity: Members of commercial collection agency association are the ones who receive the certificate from commercial Law League of America with some strict stringent tests. For example, they should have collected commercial claims for 4 years, should have strength of at least 5 employees, be in compliance with all state and federal laws concerning debt collections, etc. There is a long list of requirements necessary for an agency to become certified that you can check the CLLA’s site.
- Licensed in my state: For example, if you live in Surrey, Vancouver, then your debt collection agency must be registered in Surrey. If all your debtors are located in one state, it’s easy to hire an agency located in that state, but if not, you may want to consider hiring an agency that is licensed in all 50 states.
- Specialize in your industry: It will be better if your debt collection agency has worked with your industry. This means it already has the knowledge of intricacies. When interviewing agencies, ask them how many clients they have worked for in your industry, and what their recovery rate is for those types of clients. Also, talk to professionals like your lawyer or accountant or ask for referrals.
- Communication process: Some clients prefer to stay in a loop while collection agency deals with their customers while some leave it all on their agencies. It should be your choice and the collection agency should keep you informed about all the dealings if you want to be.
- Their tactics: The collection agency never shows its tactics to their clients. However, you could ask for the ideas they will use to collect the money, as you do not want them to harm your reputation. For instance, refusing to negotiate if the debtor is having difficult financial times isn’t illegal, but you might not be comfortable with it. Talk to the agency about their methods they use and then work with your contact there to devise a collection strategy you feel comfortable with.
Hiring a collection agency is for your own good, but hiring a good collection agency is a bit tough task. Thus, turn to ICON Debt Solution — the best debt collection agency in Vancouver.