5 Advantages of Using an Ethical Debt Collection Agency
Categorised in: Our Blog
If your business needs the services of a debt collection agency, then you’ll find thousands of such companies in the United States alone. Here, it’s important to partner with an agency that’s effective and ethical.
When you think of a debt collector, you may envision a muscular man with rolled-up sleeves, bad breath, a cigar in his mouth, and a baseball bat. This is a myth. For starters, we take care of our oral hygiene. What’s more, most debt collection agencies operate on the right side of the law. However, a minority of debt collectors can bend the rules.
As a business pursuing a debt, it’s in your best interest to actively seek out an agency like ours that has made ethical collection its motto. Here are some advantages of working with an ethical collection agency:
#1 It’s Good Karma
If you believe that every action has consequences, then it’s important to avoid a collector that may employ shady tactics. Even if you have been wronged by your customer, there are effective ways to recover your revenue without hiring an agent that may threaten, abuse, harass, or seek to embarrass them in front of their family and friends. To learn more about the ethics of a reputable debt collection agency — visit the blogs section of our website.
#2 It’s Effective
At Summit A*R, we have been in the debt collection business since 1986. In nearly twenty-five years we have served countless clients across many industries, including commercial, consumer, medical, dental, veterinarian, residential, apartment, and commercial landlords, cellular providers and more.
From our experience, we realized that most debtors are good people and want to pay their debts. That’s why we adopted our famous “P.H.D. Philosophy” (Preserve Human Dignity). This means that we approach debtors with professionalism and integrity at every step of the debt recovery process.
Our experts handle accounts with sensitivity and compassion, treating customers with dignity and respect. Our approach works. We’re proud to say that we have twice the national debt recovery average across a broad range of industries.
This is evidenced by our A+ rating from the Better Business Bureau (BBB). This rating is only given to companies that maintain a level of excellence and are serious about keeping customer complaints to a minimum. What’s more, we have many great reviews and positive feedback from clients and debtors. Many debtors are happy to pay off their dues and to be treated humanely.
Furthermore, we’re affiliated with reputable organizations such as the ACA International and the International Association of Commercial Collectors. Both organizations promote positive values such as leadership, ethics, and more.
It’s a myth that customers are more responsive when they’re threatened, harassed or receive robocalls in the middle of the night. Instead of agreeing to pay their debts, they usually break contact. And communication is one of the most vital tools a debt collector has.
#3 You’ll Avoid Legal Problems
After receiving numerous harassment complaints, the staff of the Federal Trade Commission (FTC) created the Fair Debt Collection Practices Act (FDCPA). This has made it illegal for debt collection agencies to mistreat debtors. Those who do, risk getting fined or blacklisted.
As a business, it’s in your best interest to avoid an agency that breaks these rules. Being associated with an unethical agency may not only render your lost revenue irrecoverable, but it could cause more issues.
#4 You’ll Maintain Your Reputation
One of the most important reasons to partner with an ethical debt collection agency is that it allows you to preserve your reputation. In the digital age, a single problem can make a company lose millions in stock value. If a customer complains about how they were treated by your debt collector, and the complaint goes viral, then you may lose more than you were seeking to recover.
Likewise, it could affect your ability to do business with other companies. It’s not unusual for businesses to silently blacklist other businesses that have lost their reputation in the court of public opinion. In this competitive world, every business wants to protect itself. At Summit A*R, our debt collection agency offers credit collection services commercial companies love because of our measured approach.
#5 You’ll Preserve Your Valuable Relationships
Remember, there are people behind every business. If your debt collection agency uses unwelcome tactics against your business partners to recover your revenue, then you could lose other buyers and suppliers. As a good business to business debt collection agency — we use our diplomatic approach for consumer and commercial collection services.
You might be wondering how we’re so effective when we avoid using cheap and easy tactics. Usually, our campaign of demand letters and phone calls are enough to convince debtors to pay their dues. Most people cooperate with their creditors when they realize that a reputable debt collection agency is involved. Rather than escalate matters further, they pay what they owe and move on.
However, some accounts can be more stubborn. We can usually convince them through our skilled negotiation tactics and a friendly yet stern approach. If that doesn’t work, we can report them to the major credit bureaus.
Most people are happy to pay what they owe when they realize that their credit rating could be affected. A bad mark on a credit report can dent anyone’s ability to rent a home, lease a car, or get a phone line.
Remember, businesses have credit ratings too. With a good credit rating, a business can get a loan to grow, expand, or to meet emergency operational expenses. Businesses that value their credit will find a way to pay their debts when we get in touch with them. Of course, we won’t report your debtor to the major credit bureaus if you don’t want us to. The power is in your hands. Finally, we can also take legal actions in circumstances where our normal recovery options have been exhausted and there’s a good chance of a positive resolution through the courts.
If your business is interested in recovering debt effectively and ethically, then don’t hesitate to get in touch with us. Through our website, you can call or email us. For your convenience, you can also request a callback and one of our friendly professionals will be happy to respond.