Questions to Ask Before You Hire a Debt Collection Agency
If you are looking to hire a debt collection agency, make sure that to hire the best.
We know what goes into being a top debt collection agency, because we strive to be the best. The following guide will provide you with information on what to look for when choosing a debt collection agency.
Do they report to credit bureaus?
There are many debtors who will pay off their debt just to protect their credit score, since debts can adversely affect a person's credit score for up to seven years. Thus, you are more likely to be able to collect your debt if you hire a debt collection agency that reports data to credit bureaus.
Will the agency handle your "skip-tracing" needs?
It is not uncommon for debtors to disappear. Thus, good collection agencies use what is known as "skip tracing," which means they have access to various databases that allow them to locate a debtor who has left no forwarding address. Skip-tracing is especially important if you've been personally contacting your debtor and have been routinely ignored.
Are they Associated?
It's a good idea to ensure the agency is a member of an industry association such as ACA International. The ACA International is the largest debt collection association that ensures its members perform professionally and ethically.
Are they up-to-date with compliance and licensing?
Many states require debt collection agencies to be licensed in the state where they operate. In addition, several states require that agencies be bonded. Therefore, you should ensure that your debt collection agency is appropriately licensed and bonded before working with them.