Like many businesses, you may have considered hiring a debt collection agency to recover your revenue, especially if your in-house collection efforts have failed. However, you may think twice about doing so, if you’ve heard stereotypes of debt collectors carrying baseball bats and using shady tactics to threaten or harass debtors.
While such stereotypes are reinforced by the media, a minority of debt collectors may use such strategies. They may try to abuse your customers, blackmail them, embarrass them in front of their colleagues or family, misrepresent themselves as policemen or lawyers, or use robocalls to keep late-paying customers up at night.
These tactics may be used against everyday consumers who fall behind on their bills, or small business owners who can’t pay their business partners because of temporary financial problems such as unexpected expenses, slow sales, or unpaid invoices.
Aside from being bad for your karma, such tactics are counterproductive for the following reasons:
- Consumers don’t respond well to threats and harassment. One of the most important tools in debt collection is communication. If a consumer simply stops talking to your collection agency because they felt threatened or harassed, then the account may become nearly impossible to recover.
- If your business values its reputation, then an unhappy customer who was mistreated by your debt collector may take their story to social media. Entire stock values of businesses can tank due to negative publicity.
- Small businesses don’t respond well to threats and harassment either. A small business owner understands the importance of being paid on time. Effective communication can encourage them to commit to a repayment plan.
- If your vendor was mistreated by your debt collector, then this may hurt your standing in the business community. Other vendors may hesitate to work with you or offer discounts. It’s ill-advised to take such a risk when you’ve worked so hard to develop important business relationships
- Shady tactics have been outlawed by the Fair Debt Collection Practices Act (FDCPA). The Federal Trade Commission (FTC) enforces this law seriously. Heavy fines have been handed out to companies that abuse debtors.
The Only Debt Collection Agency with a P.H.D.
At Summit A*R, we’re counted among the top commercial collection agencies in the United States because of our “P.H.D. Philosophy” (Preserve Human Dignity). This is means that we bring humanity back to debt collection. We pledge not to harass customers. We also refrain from using automated “robo-dialers” that leave multiple, irritating messages for consumers and do nothing to resolve the account.
We adopted the P.H.D. Philosophy because we believe most late-paying customers are good people who want to pay their debts. No one wants to evade their responsibilities. Making them miserable is not only bad for morale, but it doesn’t work. When treated with friendliness and humanity, most debtors are more likely to pay their dues. Using our skilled negotiation strategy, which was perfected over decades, we help customers pay their outstanding debts.
For over 23 years we’ve been in the debt collection business, doing the right thing. This has earned us an impeccable compliance record and a growing stable of long-term, happy clients. Businesses in the medical, dental, and veterinary industry take advantage of our services because of our diplomatic approach to debt collection.
Our no-complaint policy is evidenced by our A+ rating from the Better Business Bureau (BBB). This score is only given to the most reputable businesses that minimize complaints and actively try to resolve any problems. We’re also proud to be members in good standing of ACA International and the International Association of Commercial Collectors (IACC). Both are esteemed membership organizations in the debt collection industry that promote positive values. Their members are encouraged to help debtors find ways to pay their dues in a manner that’s ethical and kind.
However, as a consumer collection agency with years of experience – we also know that some debtors simply don’t want to pay their debts, even if they’re capable to do so. That’s why we maintain a friendly but stern attitude. Debtors are always treated with dignity and respect, but we also remain firm on payment.
We believe that both parties deserve fair treatment. Businesses that have fulfilled their end of the bargain deserve to be paid.
After you place an account with Summit A*R, it immediately goes into our collections queue. The entity in question is contacted via demand letters or phone calls. We sometimes recover your revenue soon after because debtors tend to cooperate with reputable debt collection agencies like ours.
We can also report businesses and consumers to the major credit bureaus. Neither businesses nor consumers want their credit reports to be affected. If your customer can’t be contacted, we track them through our skip tracing department. Led by a licensed private investigator, this department has an excellent record for locating debtors and their assets. Next, the customer is contacted about their outstanding debt.
Our skip tracing department is particularly useful if your customer has skipped town. With a higher find-rate than other agencies, we can locate debtors even if they’ve crossed state lines. We’re also all well-versed in state laws and have the experience and resources to convert your unpaid invoices into money from debtors in any part of the country. If you need more information about this, then simply visit the State Resource Center on our website. There, you can learn about local laws, guidelines, and statute of limitations. Simply select your state from the map or get in touch with us for more information.
However, resources such as skip-tracing, credit reporting, and litigation are only reserved for more stubborn accounts. Your late-paying clients and customers can usually be convinced through skilled negotiation tactics. Like your debtors, we also strive to treat you, our client, with the utmost respect, professionalism, and fairness.
Our rates are reasonable and transparent. The rate depends on the size and nature of the debt. We also don’t demand any payment upfront nor do we have any mandatory minimums. We can work with you regardless of the number of accounts you ask us to recover. You can easily follow the status of your accounts through the online portal, where you can view the status of your account, place new accounts, and download reports 24/7. If you’re interested in partnering with Summit A*R, then get in touch for more info today.
Categorised in: Our Blog
This post was written by Summit A•R