# Debt Collection Agencies - Any Good



## Magunn (2 May 2009)

Does anyone have experience of using Debt Collection Agencies. I am considering using one and have been advised that a number of well known (notorius) individuals are offering their services.
They have been discussed on Nationwide media and I believe have received reasonable publicity.


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## Tentman (2 May 2009)

Like the Viper's one !!!


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## Magunn (3 May 2009)

Your on the right track. Scary though, the thought of dealing with such individuals, but the court system is a joke.


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## room305 (4 May 2009)

I have worked in debt collection and in my experience you need to really think about what you want from your debt collection agency _before_ you hire one.

For debts where there is some kind of contractual breach (e.g. early termination of service resulting in a penalty payment the client refuses to pay) I would generally advise using a solicitor, as negotiation will be required.

Debts where there is a clear breach of the credit payment period are more generally suited to using a debt collection service, since there is less likelihood of a dispute.

Whichever debt collection company you chose - the one I have been involved with is linked here in the recommendations thread:

http://www.askaboutmoney.com/showthread.php?t=107718

You need to think about what you are looking for:

- Are you looking to outsource your entire credit control function?
- Is it a hit-and-hope exercise of sending out a few vaguely threatening letters looking for payment, in the hope a few clients will pay up?
- Do you expect regular phone-calls or personal visits?

You should get in writing the clear terms and conditions of your contract with the debt collection company. This will specify your expectations for each debt pursued in terms of how many letters, phone-calls or visits will be made and what the procedure to be followed is.

Never leave this up to debt collection company as they will simply ignore any smaller debts (small for them, they may be big for you) you give them.

Also be sure all ancillary charges and commission are clearly specified in the contract.


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## Askar (5 May 2009)

Not clear to me how beneficial a debt collection agency is if all it does is write letters, make phone call(s) and visit(s). These are all something you can do yourself. Why would an agency be more pursuasive than creditor, assuming of course it is not an agency run by someone written about regularly in the Sunday World.


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## ney001 (5 May 2009)

Tentman said:


> Like the Viper's one !!!



I think this guy is disgusting and anyone who would hire a known thug and criminal on their behalf is the same no matter what the debt.  If it is a legit debt pursue through the courts do not send in the heavies!


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## Domo (5 May 2009)

The reason debt collection agencies (or other providers of this service, me included) do better than the business person can be:

They are independant and do not get emotionally involved - e.g. your customer is well known to you, pleads he will get the money to you "when he can", and you agree - this won't happen so easily with an agency.

The agency will follow up regularly.

They will be professional in attitude.

The above can help to get funds quicker - but of course, this is not guaranteed!!!!!


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## room305 (5 May 2009)

Askar said:


> Not clear to me how beneficial a debt collection agency is if all it does is write letters, make phone call(s) and visit(s). These are all something you can do yourself. Why would an agency be more pursuasive than creditor, assuming of course it is not an agency run by someone written about regularly in the Sunday World.



Apart from Domo's points about professionalism and lack of personal involvement, the company I am involved with can place a series of automated reminder calls. So it is impossible for the debtor to say "Oh call next week, Steve deals with those kind of invoices not me ...".

We find these to be quite effective for just this reason. It also cuts down on labour costs as well, which is the reason collection of small debts is often uneconomical.


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## Askar (5 May 2009)

Domo said:


> The reason debt collection agencies (or other providers of this service, me included) do better than the business person can be:
> 
> They are independant and do not get emotionally involved - e.g. your customer is well known to you, pleads he will get the money to you "when he can", and you agree - this won't happen so easily with an agency.
> 
> ...


 
These reasons would not convince me, but perhaps there are creditors who may find it difficult to ask for their money in a professional manner.


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