What to Look for When Hiring a Debt Collection Firm
What to Look for When Hiring a Debt Collection Firm
Sometimes dealing with delinquent accounts becomes a burden on company resources and time. In such cases, it is prudent to find an experienced partner in the debt collection process. You want an experienced debt collection firm that knows your industry. For example, large material suppliers for the construction industry should find a firm that knows the ins and outs of construction debt collection.
Top 5 Interview Questions
The first step is doing background research. Learn about various debt collection firms. Find out about their reputation and check if they are listed with the Better Business Bureau. Make a list of your top choices. Once you’ve done your research, interview your candidates.
1. Do you specialize in my industry? Ask about their specific experience in your field. Large building supply companies need a firm that understands the specifics on construction debt collection.
2. Are you bonded, licensed, and insured? New Jersey and New York each have different bonding and licensing process. Ensure the firm you choose is bonded and licensed in their state.
3. What are your debt collection practices? Take note of what tactics they use. Only hire firms who adhere to the Fair Debt Collection Practices Act.
4. Do you use skip tracing? A quality debt collection firm will have access to several databases that allow them to locate debtors who have skipped town with no forwarding address. Skip tracing is especially crucial when dealing with customers who ignore your internal collections team.
5. What fees do you charge? Some agencies charge a flat fee. Others take a percentage upon collection.
Debt Collection Red Flags
Interviews and research can dig up certain warning signs. Avoid any agency that cannot prove they are bonded and licensed in their state. New York and New Jersey both require a bond for anyone operating a debt collection. Likewise, don’t choose a firm that has little to no experience within your industry.
Also, find out how they treat debtors. The firm is representing your business. They should follow debt collection laws and treat customers with dignity and respect, not threaten or deceive debtors. If an agency is known for using intimidation tactics, it’s best to look elsewhere.
If you need assistance with the construction debt collection process, call The Kaighn Company at 908-319-5155 or email cmdevito@kaighnco.com.