4 Things To Know Before Hiring A Debt Collection Agency

It can be challenging to deal with debtors who won’t pay up. Outstanding accounts can put a lot of strain on your company as they can cause cash flow issues. When you’re starting to feel stuck with your debt recovery and nothing you’ve tried seems to be helping – it might be time to turn to a debt collection agency.

These professional agencies can greatly increase your chances of recovering funds and they will greatly reduce your workload and stress levels because they can take full charge of all debt recovery tasks. But before you reach out to a debt-recovery agency, there are some things you should know. 

Debt Collectors Will Handle Your Customers With Integrity

Many businesses are concerned about the way their customers will be handled during debt recovery. Your debtors are still customers who may become beneficial and supportive of your company in the future. The last thing you need is a debt collector who is going to treat your debtors poorly. 

When you hire a professional debt collector, this won’t be an issue at all. Professional debt collectors undergo strict training and they follow specific steps and protocols while attempting to recover debts. They are very careful to keep all information confidential and will handle all of your customers with great respect. 

All Sensitive Information Will Remain Confidential

When you hire a debt collector, you will need to trust them with a lot of sensitive client information. Debt collectors go to great lengths to keep sensitive information protected. To prevent online cyber-attacks, they keep online information secure through advanced security software. 

Debt collectors also need to be very careful to ensure that any contact or information shared with the debtor will receive the debtor’s ears and eyes alone. This means utilising safe platforms and telecommunications channels so confident information will never reach out to people who don’t have to know about the debtor’s financial situation. 

You Can Rely on Complete Transparency

Hiring a third party for debt collection is a terrific option if you want to keep processes clean and completely transparent. Debt collectors are not allowed to mislead or deceive the debtor in any way and they are not allowed to make any false claims or statements.

While communicating with the debtor, the debt collectors will be careful not to misrepresent their identity. This means they won’t falsely imply that they are working for a solicitor, court, or government so they can cause the debtor to pay. The debt collector also won’t falsely work under your business name and contact debtors under your name. 

They will act as an independent contractor to assist in the recovery of debts and will clearly inform clients of their identity and all steps that will be taken during the recovery process. This level of transparency instills trust and is invaluable for avoiding conflict or misconceptions. 

Debt Collectors Do Have Some Limitations

Even though debt collectors can be extremely helpful in recovering finances for your company, they also have some limitations. 

Debt collection agencies need to operate within legal limitations, such as ASIC and ACCC guidelines and in a way that keeps the legal rights of debtors protected. This usually means that debt collectors cannot perform certain behaviors like physical force or harassment. Debt collectors are not allowed to threaten or apply physical force to a debtor. They are also not allowed to mislead debtors with false information or threats. 

These limitations are there to protect the rights of debtors and ensure that businesses will maintain a professional front even when they are faced with difficult debtors. 

Get Help From Leading Debt Collectors in Victoria

It is very important to hire a trustworthy and professional debt collector like Vic Collect. With over 30 years of experience in debt collecting, we certainly have the experience required to handle all of your customers with the best respect while helping your company recover debts. 

To learn more, or to book a free debt recovery assessment, contact our friendly team of debt collection specialists on 5792 2708 today.