Wescot: Understanding the Debt Collection Process

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Receiving a letter from a debt collection agency may be a source of worry, especially if you’re not entirely sure what it means. It’s important to understand what the debt collection process involves to you are able to make informed decisions about your financial future.

Wescot Credit ServicesThe main thing to remember is not to ignore the letter. If you’ve missed several payments on your loan and your creditor is struggling to recover the funds, they will often enlist the help of a debt collection agency such as Wescot.  The creditor may simply employ the agency to recover the debt or they may sell the debt to them. In this case you would owe the agency rather than your creditor.

In your initial notification from the debt collection agency, they will outline how much you owe and encourage you to make the payments. They may contact you via letter, telephone, or sometimes at your home (although this is rare).

At this stage you can still negotiate with the debt collection agency. The agency will be eager to recover the money so they should be willing to consider a repayment plan which is manageable for you.

It’s important to understand that a collection agency is not the same as a bailiff – a bailiff will only be involved following a court order or an unpaid council tax bill. However, this does not mean that the situation should be taken lightly.

Defaulted debts will be placed on your credit record which may make it more difficult for you to obtain credit in the future. If you co-operate swiftly with the collection agency you may be able to negotiate with them to remove the mark on your credit record. In any instance of debt, you should always take action as promptly as you can.

Dealing with a collection agency doesn’t have to be a stressful or unpleasant process. The worst thing you can do is to ignore your debt, so try and work with the collection agency and figure out a way of making the payments as efficiently and manageably as possible.

 

How to Choose A Debt Collection Agency for Your Business

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If you decide to enlist the help of a debt collection agency to help recover unpaid debts to your business there are several things you should take into consideration. Not only do you want to ensure that you receive an efficient service but you also want to maintain the reputation you have with your customers.

Wescot Credit ServicesA good place to start is by visiting the website of the CSA, or Credit Services Association. This is the official body for the debt collections industry and all members must abide by certain principles and codes of conduct when dealing with customers. This ensures that fairness and ethical standards are met. Many debt collection companies take compliance very seriously. Wescot, for example, regularly undertake audits of their staff and have them take an annual compliance test.

Once you have chosen some potential companies there are a few questions you should ask them to make sure that they are right for your business and that their customer service is up to par. Firstly, you should check to see if the company has any existing customers in your sector. If so, this can give them a greater understanding and insight into the particulars of your line of business. Secondly, you should find out whether they operate on a no-collection-no-fee basis, although most companies do. It’s also worth asking about their remittance rules; it’s important to know how quickly you’ll receive your money once they have recovered it. In addition to this, find out if they offer online performance reporting. It’s a good idea to try and see a demonstration of this so you can determine its benefit to you.

While these may seem like rather basic requirements, if your potential collection company doesn’t meet these, then it’s unlikely that they will be the right company for you. Approaching a debt collection company can be an extremely effective way of recovering the money you are owed, as well as saving you the time and money it would take to recover it yourself. Finding the right company for your needs is imperative, so it’s worth taking some time to research possible companies thoroughly to avoid enlisting the help of a company which isn’t right for the job.