Factors to Consider When Hiring A Debt Collector

Using a debt collector is often viewed in a negative light. All we hear about is having people banging on doors with threats. This isn’t always the case. There are plenty of debt collection agencies such as the Northland Group Inc that can do the debt collecting for you. You won’t have to waste the time and effort, let alone patience, to get paid back. Here are a few things that you need to consider before hiring a debt.

Are they legitimate and experienced?

The first thing you’d want to do is check for your local state’s law for debt collection to make sure that the debt collection agency you’ve selected is legal. They need to be fully licensed, bonded and insured. It is also important that they have plenty of experience with your specific industry and the type of debt that you want to collect. Ask around if the agency has good reviews and would be recommended by your colleagues.

What are they willing to provide?

Obviously, a debt collection agency should be able to collect your targeted debts in a specific amount of time. They should also be willing to provide additional services, such as reviewed or audited financials and detailed information of their debt collecting process. If you choose to, you should be provided a personal account to do payments with them.

How much do they cost?

This is probably what you’re most concerned about. If you have a budget, you need to make sure that it is enough for a high quality debt collector. A low quality one could risk you a lawsuit. You should compare fees and contingency costs. These are payment structures. There are usually two, flat fees and contingency. A flat fee is usually small and direct, it usually involves a pre-collection. A contingency is when the agency will gain a specific percentage amount from the total amount of debt that they are able to collect. It also means you won’t receive a complete amount of the debt with this type of payment.

How do they communicate?

How debt collectors communicate with the targeted debtor is crucial. You want to make sure everything is harassment and threat free, because it is very possible for the debtor to file a lawsuit against you if the debt collector gets to aggressive and cross over a line. Look over at the Fair Debt Collection Practices Act (FDCPA) to understand more about the correct ways for debt collection.