As a debt collection agency, you may represent a number of businesses or self-employed clients seeking to obtain payments that are rightfully theirs. Your duty is both to get those payments and to do so in a manner that honorably represents the companies using your services. Respectfully conducting your debt collection practices is just as important as tracking down those debts.
Instead of ignoring the overblown negativity often tied in with debt collection, as an agency or employee of a financial institution, you should embrace it and look for ways to avoid the practices that may get you into trouble and harm your reputability. According to the Fair Debt Collection Practices Act, a number of abusive, deceptive and unfair debt collection practices have been exercised by agencies, leading to personal bankruptcies, relationship instability among significant others, job loss and invasion of individual privacy. During 2010, there were more than 140,000 complaints of debt collection practices reported by the Federal Trade Commission. If your agency becomes a victim of a complaint, whether warranted or false, it can result in your organization developing a tarnished reputation and hinder your ability to be hired by new clients in the future. In order to ensure your reputability and become a leading debt collection agency, the Fair Debt Collection Practices Act suggests: · Call a debt collector only between the hours of 8 a.m. and 9 p.m. Given that the majority of workers are at their job between 9 a.m. and 6 p.m., it may be a better idea to call between the hours of 7 p.m. and 9 p.m. However, you should consider the debtor's time zone and call accordingly. · Don't overcall or try to contact the debtor if they've asked you to stop. Both of these practices may be viewed as abusive and your agency may be sent a complaint if it violates the debtors' wishes. · If a third party is handling the debt collection interaction for the debtor, only interact with them. · Refrain from threats or informing the debtor of the consequences of failure to pay. Instead, remind the debtor of their payment, find a solution, and if they continue to refuse payment, you can file a complaint to their credit agency. The more respectable you interact with your debtors, the more attractive you will become to clients in the future.