Collecting On Debts
Using an officially licensed debt collection agency may, at times, be your only realistic prospect of obtaining the payment of monies owed to you.
In what follows below, we will deal with some frequently asked questions on this subject.
Does Debt Collection Involve Threats To The Debtor?
The law would not allow certain forms of threat (e.g. illegal entry to property or physical violence) to be used by a debt collection agency and no such professional organisation would even consider doing so.
However, debt collection professionals may have a responsibility to draw to the attention of debtors, the sanctions and legal actions they may be facing if they are unwilling or unable to service their debt.
That should not be considered to be a threat or intimidation but rather a statement of facts under the law.
How Much Of My Money Will I Get Back?
At the outset, a debt collection agency may have a target of 100% recovery but as seasoned professionals, they may be realistic in assessing a given situation.
In certain circumstances, it might be more sensible for all parties to accept a compromise position and where that appears to be the case, the debt collection agency will discuss that with you.
Remember that they will be incentivised to do the best they can, as typically their fees will be related in some way to a percentage of the total they recover for you.
Why Is There Occasionally Confusion Over The Name Of Debt Collection Agencies?
It may surprise you to know that the employees of debt collection agencies are themselves occasionally subject to threats of violence and personal abuse from debtors they are seeking to recover monies from.
In response to this, some may have a strict policy of non-disclosure in terms of the names of their personnel, trading name and even physical operational office address.
So, for example, calls may be made using the name the CLS Debt Collection Agency, where the CLS maybe an acronym or simply a front name for the real agency concerned.
What Happens If Letters And Telephone Calls Do Not Work?
There is no fixed answer to that question, as each individual situation will be different.
Typically, the next course of action would be to seek various forms of court order including options such as formally winding up a commercial business or the seizure of assets.
However, as stated above, that isn’t necessarily always in the creditor’s best interests and advice will be required.
What Factors Are Used To Define The Approach?
There may be many, including:
- The amounts involved and how long they have been outstanding.
- Whether you are dealing with a legal entity or an individual.
- The reason that payment is not being made – i.e. whether or not the charges are in dispute.
- The company or individual’s asset base.
There is typically no one-size-fits-all approach. An experienced debt collection agency will need to use a significant amount of judgment.
Can You Provide Some Sample Debt Collection Companies?
Three illustrations of such providers might include:
Master Collections, London – formed in 2005, this company has obtained an enviable reputation and has won awards for their professional excellence.
Express Debt Collection, London – operating since the 1960s and they specialise in obtaining settlement, where possible, without needing to go to court.
Safe Collections, Leyland – founded in 1984, this company prides itself on operating to the highest and most ethical business standards.