With the rise in competition, more third-party debt collectors are now offering services. However, you need to be careful to stay away from collection service providers who use tricks to collect receivables. In addition, you must know that violation of the debt collection act may lead to severe penalties. In the worst cases, you may have to serve heavy penalties. It’s also true that some agencies may lean towards the trick side of things.

Most agencies have access to the same types and levels of technology; however, not all may commit to using them. You need to ensure that your third-party collections agency commits to using the most advanced technology for every client. Besides, keep a close watch as very few agencies may apply all of their smallest or least profitable clients.

Here are some warnings you should keep in mind

• Lower rates
• Poor facilities
• High turnover among management
• No latest technology

It’s true that the collection industry has a poor reputation. However, it’s also true that most third-party debt collectors can cope with all the debt collection challenges. Besides, we highly recommend not to go bobbing for bad apples. But, on the other hand, here’s how we work to do that every day.

• Total transparency with customers
• Comprehensive focus on building a powerful customer-client relationship
• Precise emphasis on operational realities
• Longevity and stability from the most professional team
• Commitment to technology
• Dedicated client services department
• Ethical treatment of debtors

Taking Compliance Seriously

In today’s era, third-party debt collectors are under an incredible amount of scrutiny. There are a bunch of compliances debt collectors need to focus on when collecting the debt. Some of these include

• FCC
• FTC
• CFPB and more

Besides, the BBB, Google, and many other complaint-based websites where debtors can post valid or not complaints. However, the third-party collections agency put themselves in the best position to help them survive and equally thrive in the environment. Creditors like Hospitals, Banks, Utility Companies, and even state or local governments rely on collection agencies.

Comprehensive compliance management system

The first indication of a professional firm is utilizing a robust compliance management system. Besides, several options are out there that could include an internally developed system. Professional Practices Management System (PPMS) certification states your service provider is compliant with the industry standards. Besides, certifications need to be audited at a minimum once every two years by a professional audit firm.

Data security

You don’t want your clients’ data to get leaked. Moreover, this will affect your business reputation in the long run. Besides, third-party debt collectors process millions of accounts on a regular basis, and there’s a lot of data that needs to be dealt with securely. In addition, a professional firm will rely on a third-party auditor to attest to data security standards.

Final Wrap

A collection recovery service provider will utilize the best collection strategy. Besides, nothing can be more important than having a compliant partner as per the law. So do the right thing to analyze how businesses handle partners.

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