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The Benefits of Debt Collection Agencies
Agencies Take the Painful Task Off Your Plate
Your business isn’t in the field of debt collection. So, it doesn’t make sense to have your staff members take on the responsibility of debt retrieval. This is time-consuming and delicate work that your staff members are not trained for. Plus, it will distract them from their actual workload, which could potentially lose your business more money in the long run.
By outsourcing debt collection tasks, you can relieve your staff of this stressful task. Trained professionals will do it for you while you go about your regular work schedule so that you don’t have to sacrifice any time or energy to recover outstanding payments. Your workplace productivity and your cash flow don’t have to suffer.
Agencies Will Know the Laws and Regulations
You should hire a debt collection agency to retrieve outstanding payments because its agents will be well-versed in the laws and regulations regarding debt collection. Your staff members aren’t likely to know these rules, which means they are at risk of accidentally violating them. This is not a mistake that you want to make. Your business could receive a fine for violating these laws, which could disrupt your cash flow and tarnish your reputation.
A professional debt collection agent will know the laws and regulations of the land. For example, under the Fair Debt Collection Practices Act (FDCPA), creditors are prohibited from contacting debtors at odd hours and cannot make any false statements in order to retrieve funds. This is federal law. Certain states will also have specific rules and regulations that debt collectors must follow, like California’s the Rosenthal Fair Debt Collection Practices Act.
A professional debt collection firm will know how to comply with all of these legal parameters.
Agencies Can Find Hard-to-Locate Debtors
Some of your clients who owe outstanding payments seem to have disappeared into thin air. You have no idea how to contact them and get the funds that you are owed.
A professional debt collection firm like Summit A*R can help you find a client that’s gone MIA. The agency has a skip-tracing department run by a licensed private investigator. What is skip tracing? It’s using specialized databases and investigative strategies to find someone who has “skipped” town.
So, if a person has suddenly moved to another state or changed their contact information without notifying your business, a skip-tracing department can track them down. Then, debt collection agents will use this new contact information to reach them in hopes of retrieving outstanding payments.
Don’t take on the burden of debt collection. Contact the right debt collection agency and have them tackle the job for you.
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