It is a fact of life in the business world that not all debts are paid on time due to a number of circumstances. Instead of your personnel trying to keep up with these accounts and make the necessary phone calls, it is much more beneficial to outsource this function to a debt collection agency. These companies understand the process and have the trained staff to develop letters, work with clients on payment plans and are dedicated to staying on top of the situation for as long as necessary.
All you have to do is send the account information over to them and they will take it from there, ensuring that as payments are made, you receive the designated amount. It is cost effective and smart time management to utilize this option, otherwise your employees are pulled away from their duties, and current accounts can then become an issue.
Collection agencies usually only charge a small fee for operating these accounts. However based on the authorisation that you give them, they can work with customers on creating workable plans that keep the relationship pleasant, whilst helping the debt to be lowered. They can offer reduced balances, lower interest rates (if that applies) or automatic withdrawal payments in order to try and encourage the customer to take care of this faster.
Deciding which debt collection UK company to work with is important. You need to partner with a company that is professional, customer friendly and polite because the goal is not to alienate your clients but simply be able to have someone else handle the task. You should also work with a company that has a system that can accept payment in a variety of ways such as online, mail and by phone. The more options the client has, the easier it is to deal with the problem.
A debt collector usually makes efforts to negotiate an acceptable arrangement with the debtor regarding the payment. They are willing to reschedule the payment as they recognise that the circumstances may make it hard, even for a responsible debtor, to pay back.
However, things are not always that easy. There are times when people simply refuse to respond and do not acknowledge the mails sent to them or return calls. In such cases, the debt collector is forced to explore more drastic measures to recover any overdue amounts.
The next logical step in this scenario is to hand the matter over to an attorney who is experienced enough to handle such cases. They would begin with the legal process immediately and send a notice to the debtor. Debt collection attorneys have expertise in recovering unsecured commercial and individual debts like student loans, purchase debts and medical defaults etc.
Attorneys work closely with debt collection companies, also offering legal consultative support during default amounts collection.
The law allows a debt recovery attorney to perform in-house visits to the debtor’s property. Although they are authorised to seize property, negotiating a payment plan is the preferred option. They may encourage the debtor to agree to take a part of their property, equivalent to the amount of the debt, to settle the outstanding amount.
If the debt collection lawyer operates along with a DCA internationally, they may serve one, or more countries, depending on their area of expertise.
If the situation demands, the recovery attorney may even file a statement of claim towards the court, requesting wage garnishment of the debtor.
Debt collection attorneys in the UK act under the Solicitors Regulation Authority (ext. link 6), the Financial Conduct Authority (ext. link 8), the Consumer Protection Act- ext. link 7, etc. Competent lawyers can use their expertise to squeeze the options available to debtors, forcing them to shell out the payment due.