1. Hidden fees
It’s tempting to prioritize low costs when choosing a debt collection agency. However, bear in mind that quality often comes with a price. Be wary of hidden fees. Some agencies switch tactics as soon as you sign up the contract with additional charges cropping up.
2. Ineffective Recovery Rates
Unscrupulous agencies often lack the experience, resources, and technology to maximize debt recovery. This translates to lower collection rates, leaving your unpaid debts stagnating.
3. Compliance Issues
- Unscrupulous agencies might resort to unethical or non-compliant practices, leading to legal trouble and reputational damage for your business. Be cautious of agencies with a history of complaints or legal issues. Do your research and choose a reputable partner that adheres to the fair debt collection practises act (FDCPA)
4. Inactive Communication
Your debt collection agency should be like an extension of your team by establishing clear communication channels with your agency. Regular updates and reports keep you informed and allow for easy flow of collection.
Assign a company representative to handle all communication with the agency. This ensures consistency and avoids confusion.
Don’t wait for debt to become unmanageable, prompt transfer of accounts to the agency increases the collectability of the debts.
5. Lack of Transparency
Choose an agency that provides clear communication and keeps you informed about their collection progress through regular reports and updates.
6. Focusing Solely on Recovery
While debt collection is the primary objective, remember your long-term relationship with the customer. Choose an agency that is professional and prioritizes ethical practices and customer relations alongside recovery efforts.
By avoiding these common mistakes and choosing the right partner, you can fast track your debt collection. At Gold Edge, we are committed to helping your business thrive by providing reliable, effective, and affordable solutions.
Why Gold Edge?
We believe in ethical, effective, and transparent debt collection. We offer tailor made services to your specific needs. By following up payment of aged debts, we enable businesses concentrate on their core functions.
- Experienced and Certified Professionals
Our team comprises experienced and certified debt collection specialists who understand the dynamics of the industry and employ proven strategies to maximize recovery.
- Compliance and Ethical Practices
We adhere to the highest ethical and legal standards, ensuring responsible and compliant collection practices as per the FDCPA (fair debt collection practises act) protecting your reputation.
- Client-Centric Approach
We assign a relationship manager to each account for open communication and regular reporting, keeping you informed and involved throughout the process.
- Customized Solutions
We understand the uniqueness of our clients. We tailor our services to your specific industry and debt types. Let us take the headache of your unpaid debts. Contact Gold edge today and experience fast seamless debt collection.