Let’s Shatter Some Misconceptions About Debt Collection
Whether you’re a large business or a small enterprise, you may have considered using a debt collection agency to recover your revenue. You know that your finance department is unlikely to be as effective as a team of professionals that specialize in recovering debts. Your employees may not have the time, skill, training, or aptitude for debt recovery.
Yet, you may hesitate to use a debt collection agency because of certain misconceptions. You may have watched sensationalist TV shows that further exacerbated these fears. You want to recover your revenue, but you don’t want your customer to be mistreated. You want to be paid but you don’t want to damage the relationship with a debtor who may become your best client.
At Summit A*R, we’ve been in the recovery business for over two decades. In that time, we’ve worked with many businesses of different sizes across many industries. As your trusted agency for consumer debt collection across the nation, we understand these concerns. They are fueled by myths due to a few bad actors. Such bad actors are in the minority and their deeds are magnified. Here are a few misconceptions about using a debt collection agency that we’d like to clear:
Misconception 1: Most Debt Collectors Use Underhanded Tactics
It’s a misconception that most debt collectors use shady tactics. Such unscrupulous agencies quickly get blacklisted and fined by The Federal Trade Commission (FTC) for violating the Fair Debt Collection Practices Act (FDCPA). This is a guide that all debt collectors must adhere to. While some collectors ignore the FDCPA, it’s easy to avoid them.
At Summit A*R we’re proud to be affiliated with the following organizations:
ACA International: Previously known as the American Collection Association, this 80-year-old trade group promotes values like leadership, integrity, respect, responsibility, and education. They encourage debt collectors to treat debtors with dignity and respect.
International Association of Commercial Collectors: This prestigious membership group promotes professionalism, ethical behavior, mutual support, education, and leadership among commercial collectors. It also offers certification to its members.
Both premier groups boast hundreds of thousands of members. These are debt collectors that believe in good values. At Summit A*R, we’re also proud of our A+ ranking from the Better Business Bureau (BBB). This ranking is only given to organizations that have an excellent reputation and minimize complaints by addressing them quickly.
Misconception 2: Underhanded Tactics Are Effective
Not only are shady tactics illegal and a source of bad karma, but they’re also ineffective. As an ethical collection agency, we pledge to avoid using the following tactics:
- Harassment: We don’t threaten, abuse, or harass customers. Instead, we follow a P.H.D. Philosophy” (Preserve Human Dignity). This means that we bring humanity to debt collection. We treat everyone with dignity and respect.
- Robocalls: We don’t use this computerized auto dialer system to pressure a client.
- Misrepresentation: We never misrepresent ourselves to pressure customers.
With 23 years in the industry, we have an excellent reputation. Our involvement in the debt recovery process is often enough to quickly recover payments. We use a campaign of phone calls and demand letters. Usually, this is enough to collect a debt.
For more stubborn accounts we rely on skilled negotiation to convince debtors into paying their dues. We can also report delinquent customers to the major credit bureaus. Most people are willing to pay what they owe when they realize that their credit rating may be affected.
Our strategy works. We boast twice the national recovery rate. We’ve also earned good reviews from our clients and debtors. You can find handwritten testimonials on our website.
Misconception 3: Small Businesses Can’t Afford Debt Collection Services
Many small businesses assume that they can’t afford to partner with a debt collection agency. While some agencies only work with large business, we offer services to a business of any size. We work on a contingency basis. This means that we don’t charge anything upfront nor do we have mandatory minimums. You don’t have to guarantee a certain number of accounts to work with us.
We’re the collection agency that small businesses trust because we understand that business relationships are especially valuable to smaller enterprises. Our diplomatic and effective approach means that you can recover your revenue without jeopardizing your standing in the community.
Misconception 4: Debts Can Hit a Point of No Return
It’s true that debt becomes harder to recover with time. However, each case is different, and it’s always worthwhile to contact Summit A*R. Over the years, we’re proud to have recovered some seemingly impossible-to-recover debts.
If your customer is ignoring your invoices, phone calls, and letters, then don’t wait. Get in touch with us as soon as possible, even if a significant amount of time has passed.
At Summit A*R we have a state-of-the-art skip tracing department led by a highly skilled and experienced private investigation team. Thanks to our resources, our investigation unit has a higher find-rate than our competitors. Even if your customer has skipped town, crossed state lines, or is lying low, we can find them and their assets.
In case a customer is stubborn, we also boast an excellent litigation team. Our team will perform a cost-benefit analysis of pursuing legal action. If legal action is feasible, we’ll approach you for approval. If you don’t wish to take this route, we’ll return the account to our recovery queue for further action.
Misconception 5: Debt Collection Agencies Keep You in the Dark
While we can’t speak for other agencies, our policy is to be completely transparent with our clients. We offer our customers regular updates through our collection reports. We also assign a case manager to you to keep you updated. Our compensation is anywhere from 7.5% to 50%, depending on the details of the case.
These are five common misconceptions many people have about debt collection. We hope that shattering these myths will make you more comfortable about partnering with a debt collection agency. With the right team on your side, you can recover your revenue, improve your accounts receivable turnover ratio, and enhance your profitability. Get in touch with our friendly and professional staff today to learn more about how we can help you.
Categorised in: Our Blog
This post was written by Summit A•R