What steps debt collection agencies take for reputation management

Debt collection is a herculean task. A lot of time and money has to be invested in debt collection. Small businesses don’t have the resources to do so. Even the large conglomerates face issues due to the high scale of transactions happening. Hiring a debt collection agency works best in the interest of brands for debt collection. But picking the right agency isn’t straightforward. Some of these agencies push the boundaries of the law to extract money from the debtor. This method of debt extraction has a direct impact on the brand’s reputation. Once lost, building back trust with your clientele will take a lot of effort and impact your resources. 

Debt collection agencies like cedars business services are trying their best to change the bad reputation tag of debt collection agencies. Some of the steps that good debt collection agencies take to ensure transparency are:

Clear identification: The debt collector should provide all the information related to a delinquent account that he or she is working to recover debt from. This information should include:

  a.Debt agency’s name, address, phone number, and license number if applicable.
  b.Creditor’s name, amount of debt owed, and transaction details.
  c.Acknowledgment of consumer rights based on the Fair Debt Collection Practices Act.

All this information should be provided in verbal as well as written communication. This transparency is important to avoid any confusion related to the dues.

Communication: All the communication channels must abide by the Fair Debt Collection Practices Act. Some precautions to take would be:
The debtor should be contacted between 8 am and 9 pm local time only.
Once a debtor has sent a "cease communication" letter to the agency, communication should be halted.
The use of offensive, obscene, or threatening language should be avoided.

Lawsuits: Non-payment of debt isn’t a criminal matter until the debt is related to taxation or child support. Thus, until legal action is being taken, the collector cannot discuss a lawsuit with the debtor. Failure to pay dues doesn’t imply that the debtor has to go to jail. Once the creditor has won the lawsuit against the debtor, then they can touch his or her bank accounts or salary to collect the dues.

Credit reporting: The FDCPA gives certain rights to the debtors in case their account goes delinquent. Any data related to credit reports should be accurately reported by the debt collection agency. The agency should also correct and report the updated information in case of changes or errors. The collector cannot use the debtor’s credit report as a tool to extract the dues.

During the debt collection process the debtors should be treated humanely and compassionately. Any wrongdoing by the collection agency will impact the brand’s reputation. Cedar business services is one of the best debt collection agencies in the industry. This company has a good amount of experience in debt collection. Moreover, its large clientele itself talks about how good its debt recovery practices are. To know more about them you can visit their website.