When it comes to collecting unpaid debt, working with a debt collector can be of enormous help. These are professionals who specialise in using persuasive and legal techniques to collect payments from difficult customers. When looking for a debt collector, there are the typical things you look for like extensive experience, an impressive track record and reasonable rates. In addition to these, here are five essential features you should add to the list:
1. Compliance with the Law
Many debt collection agencies are not licenced to collect debt in various states in Australia. Ensuring compliance is a crucial step in the debt recovery process. If the debtor finds out that the collector is not compliant or is using illegal collection practices, they may file a lawsuit. To avoid this, always verify that the agency is up to date with compliance licences and certificates and uses legal methods to recover debts.
2. Cybersecurity Systems
Debt collectors gain access to sensitive customer information such as their names, identification details, addresses and so forth. They need to have security systems in place to protect this data from access by unauthorised personnel. In today's era where cybercrime is rampant, holders of sensitive personal information should stay on top of cybersecurity. If your debtors' data leaked, you'd face lawsuits that could tarnish your image and hurt the business.
3. Second Placement Services
If you have worked with a debt collector who failed to recover debt, your next agency should offer second placement services. A second placement is any account assigned to a debt collector for collections that were previously attempted by another firm. The new firm should take on the accounts and collect on them. If possible, ask to see the agency's performance on the previous second placements as this will give you a clue into what to expect with your uncollectible debt.
4. Skip Tracing Services
Most debt collectors have skip tracing services, but it's good to be sure from the get-go. Skip tracing is where the firm collects as much information as possible about a debtor. They obtain the data from resources such as public records databases, utility bills, job applications, criminal background checks and loan applications among others. This step is crucial for debtors who have moved to another town or country and are untraceable.
5. Legal Services
A time comes when you have to take legal action against difficult debtors. One way to do this is by filing a lawsuit. Working with an agency that offers litigation services is affordable and time-saving. You don't have to find another firm or start fresh fee negotiations. What's more, since the agency has all your debtor records and history, they can act on the data immediately and take the necessary legal action.
As you look around for a suitable debt collector, ask about these issues as they will go a long way in increasing the success of the operation. For more information, contact local professionals like those found at Stokes Legal.