There comes a time when most businesses are going to run into the need to collect various types of debt. This process can be quite frustrating and upsetting. Sometimes a business will do everything it can to collect the debt, but hiring a collection agency will probably be unavoidable. Before hiring one of these agencies, like Pacific Collection Group, there are a few things you want to consider and think about. We’ve put together a list of 6 things to take into consideration while you’re going through this hiring process.
Do Your Research
One of the most important things is to do your research. There’s many reasons why this is so important, but one of the top ones is that most agencies have certain specialties or areas that they work in. You want to make sure you hire an agency that’s going to have experience with your business field and what kind of debt collecting. For example, you don’t want to hire someone who only works with large companies if you’re a small one. By looking at different agencies, you’ll be able to see the type of businesses they usually work with and what fields they have expertise in.
Fees
Before hiring any agency, it’s important to ask about and see what their fee schedule looks like. Most agencies will be set up in 1 of 2 ways. These are: flat rate fees and fees that are calculated based on the amount of debt that needs collected. While asking about fees, you also want to see how successful they are with actually collecting the debt. These agencies aren’t cheap, so you don’t want to spend a bunch of money to get absolutely nowhere. If possible, ask for references from actual businesses in the same industry as you to see what they have to say.
Insurance Information
Another thing to check is what their insurance information is. Working with an agency that doesn’t have any type of insurance is one that you want to stay far away from. Not only should you ask if they are insured in every state or at least the state where the debtor actually lives. If they are, they should have at least Errors and Omissions. This is extremely important because it protects both the agency and you in all kinds of situations. If they don’t have at least that, you should stay away and try to find another agency.
Update Practices
Some collection agencies will only update you a few times throughout the process, while others will keep you updated on everything happening. While some businesses are fine with only a few updates, you should go with an agency that gives regular updates throughout the process. Not only will this give you an idea of where everything is, but you’ll also be informed of any issues that end up happening. The easiest way to find this information is to just ask up front what you can expect. If the answer isn’t what you want, you can choose to find another agency.
Check Reviews
You’ll also want to check reviews from as many sources as possible. One thing to remember with this is that you want to make sure you’re finding reviews that are unbiased and not being swayed by any kind of incentive. Not every business does this, but there are some out there that will pay for positive reviews. The ones that are real will tell you all of the nitty gritty details of the entire process and let others know the good and bad parts. If possible, try and reach out to others that are in your industry that have used the agencies you’re considering to see how everything ended.
Skip Tracing Practices
It’s extremely common for someone that owes debt to skip town and leave. If this happens, they can be very hard to find. Ask the agencies you’re considering if they do skip tracing, which is looking at multiple different databases to try and find the person. While this isn’t something that’s crucial, it could mean the difference between getting the debt collected and having to write it off.
As you can see, these are great tips to use in order to find a good company like Pacific Collection Group. The most important thing is to hire a company that is well known, has a good reputation and gives you comfort when you think about working with them. A good rule of thumb is to stay away from any company that doesn’t have much of a reputation because you never know who you might be working with