Collection Services? Enable a Collection Agency to Go After Your Unpaid Invoices

Incassodiensten? Incassobureau inschakelen to go after your unpaid invoices can help you get back the money that’s owed. However, it’s important to understand the pros and cons of hiring a collection agency before you do.

What are the rules for collection agents?

Collection agencies, also known as debt collectors or credit-recovery agencies, act as middlemen to collect debts for lenders and creditors from consumers who haven’t paid their outstanding balances. These firms can negotiate repayment arrangements, agree on a settlement amount and even help consumers work through the process of disputing their debts. They’re generally contracted to work accounts for a certain period of time, and any that aren’t successfully recovered will be returned to the original creditor/lender.

While the benefits of working with a collection agency can be substantial, it’s essential to ensure your chosen collection agency is adhering to the Fair Debt Collection Practices Act (FDCPA) and other legal guidelines that protect consumer rights. Otherwise, you could find yourself on the other end of a lawsuit.

Before you choose a collection agency, make sure it offers a payment-on-collection model. In this case, your business turns over the name and contact information of the outstanding debtors to the collection agency, which then tries to collect on the debt for you. When they’re successful, the agency will pay your company the total collected minus their fee.

One of the biggest risks of hiring a collection agency is damaging your relationships with nonpaying customers. They may stop doing business with your company if they receive a phone call from a collections agent, so it’s important to have a clear strategy for communicating with these clients before sending them to collections.