Companies with debt recovery problems that have decided to hire a
debt collection agency have come to an important crossroads. They have decided to pay for and
outsource an important function to a third party, in order to recover their company’s most vital
resource, capital. Now that the decision to outsource has been made, a debt collection agency must
be selected. When deciding which collection agency will handle your company's debt recovery, it's
important to remember that the agency becomes an extension of your company’s name. A debt
collection agency and it’s employees’ level of professionalism should absolutely be taken into
consideration.
Professionalism is key. Both in the way that the collection agency
conducts themselves with your clientele and they way they handle their interactions with you.
Certainly there may be situations in which the dynamic between the collection agency and a
delinquent customer becomes less than desirable. However, that does not mean that every exchange
between the collection agency and your clientele needs to start at an unpleasant and elevated
level. Until it’s established otherwise, there may be valid reasons that your client has had to
delay their payment. Common sense dictates that the collection agency should refrain from using
strong-handed tactics until a) more pleasant tactics have failed and b) you no longer desire that
specific client’s business.
Additionally, it’s imperative that the agency handling your debt
recovery comply with the federal laws governing collection in your area. Inquire into the approach
that the debt collection agency uses to collect. It’s your company’s name (and possibly more) that
could be at stake if the agency you use isn’t in compliance. Determining the agency’s credentials
can also take steps to assure their professionalism. One organization that tends to lend
credibility is the Association of Credit and Collection Professionals (ACA). Members of ACA agree
to be in compliance with state and federal laws related to debt recovery, as well as the ethical
guidelines that the organization uses to self-regulate. In addition to being an ACA member,
agencies that make use of Errors and Omissions Liability Insurance convey a certain level of
beneficial responsibility in terms of accountability issues.
Lastly, meeting with the debt recovery agency’s representatives,
at the agency’s location, may go a long way to validating that the agency works in a legal capacity
with proper standards. Request a tour of the facility and ask to be shown the business operation
and their debt recovery methods. Will you be comfortable if your clientele is being handled the
same way you are seeing the collection agency handle someone else’s clientele?
