Every collection agency is going to tell the client they will collect the debt quickly.
But, no agency can guarantee how fast they can successfully collect.
All collection agencies want to collect the debt quickly because this is the least amount of work for the agency which therefore generates the highest profit margin for the agency.
What are the typical reasons why some debts are not collected quickly?
- The debt collector is unable to contact the debtor.
- The debtor truly has no money. How can the collector respond to this objection?
- Can the debtor get the money elsewhere?
- Or, how can they come up with payments over time?
A proxy for how fast collection agencies collect understanding their process.
The creditor should try to answer two key questions:
- How fast and persistentis the collection agency with new claims?
- When will they start the debt collection process?
- When will you receive your first report?
- Does the collections agency commit to this in writing?
- If the collection agency can’t collect quickly, what level of effortdo they put on the claim at this point?
- What is the quality of skip-tracing?
- Persistency – what is the agency’s definition?
- Does the agency devise a plan to pursue the debt again at a later date?
- Or does the agency give up and move on to other claims?
- Does the agency immediately move towards litigation which may be expensive?
An alternative indicator relating to how quickly the agency can collect is to look at how quickly the agency actually starts working on a claim.
- What does the collection agency promise?
- What does the agency deliver? (If you have several claims, give them a few to see how it starts).
How to Select a Collection Agency