3 myths about Debt Collection Agency

Being a business owner you have a lot of responsibility to deal with, from taking care of the business sales to dealing with the decreasing sales, a business person has many aspects to deal with. Time, money, and resources all three are the important aspects and using them strategically and calculative ways are very important for a successful business.

If you have a business in which you are trading the goods and services on credit then dealing with debtors might be a common issue for you. But in many situations you might get stuck with debtors who are unwilling to pay and chasing such debtors to get your amount back is not an easy task. In such a situation you might end up investing too many resources, time, and money on the collection and end up with nothing and after that long time of investment you end up writing it as bad debt.
Instead of writing it as a bad debt, you can deal with such debtors taking help from the professionals. The best way to do this is to hire a debt collection agency. A debt collector is well known about the tactics to get the debt back, as they are professionals and solely work in the collection field to get your debt back.

But many business owners don’t hire a collection agency due to some myths. Here are few myths about debt collection agency and the truth behind-

Myth 1: Debt collection agency uses unethical tactics of the collection

It is one of the most common myths about debt collection agencies. Collection agencies have a particular set of rules and regulations and every collection agency is liable to follow those rules. If any agency uses the tactics that are beyond the laws and guidelines, you can easily take them to the government. Majorly the laws include that the collection agent cannot use the harsh words on the debtor, the agency cannot call at the debtor’s office and tell them about the debt, a Debt collection agency cannot call the debtor’s in the odd hours, etc.
So, a legit and experienced debt collection agency never follows such practices while asking for a debt collection.

Myth 2: Debt collectors will try anything to get money

Debt collectors are strictly regulated with laws and regulations. The debt collection industry has strict rules and regulations to which they are bound to follow and every legit collection agency follows them. Professional debt collection agencies never overlook the laws and will follow all the applicable laws. TSI’s commitment to compliance means customers are always treated with the utmost respect, while your brand is protected from costly compliance violations.

Myth 3: Debt collection agencies are too expensive

Many people prefer to write off the debt, instead of hiring the collection agency as they are too expensive. This is the case even with large companies.
But the fact is hiring a professional and experienced debt collection company is an affordable option. Writing the unpaid debt might be helpful but collecting the debt is even better. TSI offers fixed and affordable pricing on early-stage delinquent accounts and contingency-based fees for your more challenging or older accounts.

Hiring a debt collector who is an expert in their field, not only improves the financial health of your business but also makes the debtor’s aware of the challenges they can face for not repaying the debt. You should also ensure to hire the collection agency of the debtor’s native place. For example, if the debtor is from New York, hiring a debt collection agency of New York is a wise decision. As every state and country have their own rules and regulation so hiring the agency of the respective place would be beneficial.