What Collection Methods Will A Debt Collection Agency Use?

If you’re looking at hiring a debt collection agency, you might be wondering how they will go about recovering the money. What approach will they take, and are there things a debt collection professional would do differently to you? While there are a number of different techniques, and each agency will have their own preferences, there are a few universal approaches that always tend to be the most effective. Today, we’re going to talk about just 4 of them, and why they work well more often than not.

Send Letters

One of the most important debt collection methods is to send a formal letter. These letters are more serious than an email, and can be much more effective at getting your message across. Sending a letter is the start of the process in recovering a debt and is necessary if you go on take court action.  The letter will state what is owed, under what contract/terms and by when the debtor needs to respond. It’s also a way to reinforce what will happen next if the debt remains unpaid- including court action.

Send Emails

Once a letter has been sent by post, it can also be sent by email in order to get to the debtor quicker and hopefully get a response sooner.  Chase emails are a good way of keeping in touch with the debtor and also reminding them of any agreed payment plan and payment dates.

Phone Calls

Of course, letters can be ignored, which is why they are often best paired with phone calls. Again, these are difficult to ignore without putting pressure on the debtor, and they allow you to really make an impression. It’s also a good way to talk to the debtor themselves, get a clear picture of why they haven’t paid, and build a plan to help them clear their debt.

Applying For A CCJ

If all of the methods above haven’t been effective, the next step is to pursue legal action. This usually means applying for a county court judgment (or CCJ) on your behalf. This is a type of court order, and it’s awarded when someone owes you money and they fail to repay it or respond to the claim.

A default judgment will only be ordered by the court where the claim is not defended. Once it has been awarded, the debtor has to pay back the money owed in line with specific payment terms. This could be repaying the full amount immediately or by instalments as ordered by the court.

At Debtcol, we understand how stressful it can be when someone owes you money, and how challenging it can be to follow Up on missed payments. That’s why we do everything we can to recover your funds quickly and painlessly. We carbine the techniques above and more to ensure money owed to you is returned to you. For more information about our services, or to find out how we can help you, just get in touch with the team today.