The Debt Collection Company You Pick Reflects on Your Business

The ocean of debt collection companies these days is a very large one. There are big companies, small ones, ethical ones, and unfortunately some that have no understanding of ethics. When you employ a debt collection agency to collect a debt on your company’s behalf, make sure you do your research in advance to make sure you pick the right one.

Remember, there are many debt collection companies who consider the business of collecting debt to be a "take no prisoners" kind of business and believe that harassment, not tact and skill, is the best way to collect a debt. Such behavior can make your business look bad.

Why a Debt Collection Company’s Image Is Your Company’s Image, Too

While using threats and intimidation to collect debts might work in 1930’s-era gangster movies, in the 21st century it’s not ethical. It’s also against the law, according to the U.S. Government.

Harassment or any kind of illegal or unethical means of collecting a debt as defined by the U.S. Federal Trade Commission (and in some cases by The Better Business Bureau) can cause legal action to be taken against the collection agency. While it’s not common to have a consumer file a lawsuit against both a collection agency and the business it’s representing, it’s certainly possible.

More than likely though, if a collection agency uses unethical or illegal practices on a regular basis and your company sends a lot of past due accounts to that agency for collection, your company could be seen as unethical in the view of the general public.

A Debt Collection Agency That’s Not on Solid Ground May Disappear

A debt collection company can also land you in hot water if it’s not using proper business management methods within itself. If a debt collection company hires employees who steal money that should be going to the client company (and it does happen), two awful things can result:

• You don’t get your money as soon as you should.
• If this is an ongoing problem within the debt collection agency, eventually their balance sheets will look quite unbalanced and the company may suddenly close without notice, leaving you without your money.

Remember, when choosing a business collection agency, "choose wisely."

The Best Debt Collection Company Will Provide Beneficial Results for Everyone

Collection agencies that use ethical business practices train their employees on what collectors can and can’t do. They are also in close contact and work to partner with the U.S. Federal Trade Commission to make sure they are not breaking any laws.

Good agencies will have solid internal accounting practices that ensure that they stay in business for the long haul and that you get your money when you’re supposed to. Owners and managers of these companies should take what they do very seriously – and the good ones do.

Top notch collection agencies treat the business of collecting debts as a business, not a game. They consider the person or other company owing the debt as a customer. They will treat debtors as human beings who are part of the buying public and they will recognize that by treating the debtor properly your company may actually have a debtor who will want to do business with you again.