Debt Collectors are plagued by misinformation and myth. Unfortunately, this often results in high volumes of bad debt, damaged credit ratings and event bankruptcy.
We are here to debunk the top 10 myths about debt collectors, and debt collection in England, to give you peace of mind and make outsourcing this tricky task so much easier.
MYTH 1: DEBT COLLECTORS ARE UNPROFESSIONAL AND SCARY
This is just not so. To be a good debt collector you actually need advanced people and negotiation skills, as well as an ability to be persistent and firm while retaining a friendly and professional relationship.
MYTH 2: IT’S EXPENSIVE
Debt collectors pay for themselves – with no up-front fees and a no-win-no-fee policy, they only get paid when you do. Under the Late Payments Interest Act you can even add a fee onto the debt collected that could cover all or part of the costs, so it could even end up being free!
MYTH 3: THEY ONLY WORK FOR BIG CORPORATES WITH BIG DEBTS
Some collection agencies do specialise in larger debts, but you may be surprised to learn that the majority of collectors will recover debts from as little as £450.
MYTH 4: IT’S BETTER TO USE A SOLICITOR
Appointing a solicitor to collect your debts as a first response could prove costly and more time consuming. Debt Collectors will often collect debt on the basis of a quick call or email with no long contracts and, with no upfront fees or big hourly rates, they are often a cheaper and more efficient option.
MYTH 5: DEBT COLLECTORS ARE GREEDY AND DON’T CARE
It’s generally in the interest of a debt collector to build a long-term relationship with their clients. By getting to know them, and their debtors, they become more effective at collecting debts quickly. With no-win-no-fee and fees taken as a % of the debt collected this isn’t as lucrative a businesses as some may assume, and we have to work hard to win and keep our clients to make our businesses stay afloat.
Hopefully that has put your mind to rest about appointing a debt collector to recover monies that are owed to you.
Our Debt Collection service is the cornerstone of our business, and we take great pride in the fact that the majority of our clients are very long-standing and we have fantastic relationships with them that lead to most of our new work coming from referrals.
If you are unsure whether outsourcing this thorny issue is the right thing for you and your business, give me a call and we can chat through how we can support you 0113 3229 555.
For more information visit our Debt Collection pages.
Chris – Director