If collections are a part of your business one of the best things to do would be to hire the services of a debt collection agency. They also help you in collecting old debts from people who become delinquent. Far away from the common myth of agencies serving threatening calls and violating people’s rights, collection agencies are handled by professionals who collect debt on your behalf. The Internet has become the best place to hire these agencies. Here are a few tips which will help you in hiring an online debt collection agency:
Do Your Research – When you plan to hire a debt collection agency make sure you carry out a thorough research. Check the background of the company and see if any criminal cases are registered against them. Having a spunky website doesn’t guarantee them to be a good agency as there are many dupers around in the online market. See how long they have been in business of collecting debts and whether they have handled cases similar to yours in the past.
Ask For A Reference – The best way of finding a debt collection agency is to ask for references from friends and family. Someone among your friends or family might have used a collection agency in the past and you could use the services of the same. This will save you from the ordeal of carrying out a background check on the agency you engage for debt collection.
Remember some agencies may not be able to provide a reference for small collection clients or they may be unable to because many people and companies don't like to admit having a debt collection problem.
Fee Structure –Some online debt collection agencies have two models of charging. In one they charge a flat fee up front where as in the other they charge you a percentage of the recovered money. Both of these models have their pros and cons so you should make a decision accordingly. If your recovery amount is substantial a flat fee structure is advisable as it will cost you less than a certain percentage of the debt.
Hold Harmless Agreement – Debt recovery works in a narrow line of margin where violation of rights isn’t uncommon. In such cases make sure the collection agency allow you harmless agreement which shield you and your business from any legal liabilities on the part of the collection agency. Without this you can be held accountable for any of their actions.
These tips will surely help you in selecting the best debt collection agency online and recover your old debts without any trouble.