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What to look for in a debt collector

On Behalf of | Feb 24, 2021 | collections

If you are struggling to collect on past-due accounts, you may be seeking the services of a debt collector. Choosing the wrong collection agent or agency could leave you stranded, however, still searching for solutions while taking on the cost of hiring a firm. The following considerations may help you as you make this important choice:

  • Overall ROI: Your return on investment should be the overriding concern. While some agencies may offer to collect debts for a small percentage of the debt owed, this selling point begins to diminish if they only collect a small portion of the total debt, or none at all, or if they demonstrate by inaction that your account is not important to them.
  • Personal service: A debt collector who gets to know you and your business can craft a strategy that is uniquely suited to your present situation. Are you more concerned with getting a fair result quickly or will you be satisfied with a more long-term strategy with a higher potential ROI? An impersonal collection mill may not have the resources to provide you with the attentive service such considerations require.
  • Versatility: Choosing the right strategy depends upon the debtor as well. In some cases, a carefully worded letter is all that is needed to obtain the desired result. Other situations may call for aggressive legal tactics from the outset. There is no need to use a sledgehammer when a scalpel will achieve the job more effectively and at a lower cost. On the other hand, sometimes a blunter approach is exactly the approach you need. Your debt collector should be prepared for any situation.

Not all creditor situations are the same, and the right debt collector for one scenario may not be the right one for another. Discuss your needs with an experienced debt collection lawyer so you can equip yourself with the knowledge you need to make the right decisions.