Debt collection agencies come in many shapes and sizes. Some only handle certain types of debt (regulated and unregulated), A debt collection agency operational model is either:
Agreeing that the creditor will still own the debt, with the collection agency being paid a percentage of the money they collect; or
Alternatively, the creditor can assign the outstanding debt to the collection agency and, in turn, receives a lump sum payment. The agency is then established as the legal owner of the debt and retains everything that they collect from the debtor.
Do Debt Collectors have special legal powers?
The answer to this is no. A debt collection agency can do no more in law (e.g., through the Courts) than the legal options that are available to any creditor.
Nevertheless, just because they don’t have any special legal authority doesn’t negate the influence the debt collection agency can bring to bear, to ensure that the original debt is successfully repaid. And this is without factoring in the time, manpower and stress the agency can save the indebted company – which allows them to focus on their priorities, such as increasing sales or improving the customer service. A debt collection company brings expertise to the relationship that is not often found inhouse
There is normally a tried and trusted route that a collections agency will use, usually beginning with a letter or phone call to the debtor.
The mere fact that a debt collection agency has made contact with someone in arrears is often sufficient to solve the problem. The perceived escalation of the issue often results in a payment
A regulated collections company, such as Manx Collections Limited, is not solely focused on receiving a payment, they are equally focused on helping the customer to resolve the issue. Understanding the customers needs and acting on what is best for them always drives a positive outcome for the customer.
Debt Collection Agencies are regulated and act ethically
A professional debt collection company works within a stringent ethical code of conduct and is also heavily regulated by the Financial Conduct Authority. At the heart of this code of conduct is a positive outcome for the customer. Even more so with the introduction of the consumer Duty by the Financial Conduct Authority.
In most cases, businesses who fail to pay their invoices and fall into arrears, do so due to cash-flow issues. For a successful resolution, and to ensure repayment, each case needs to be handed with sensitivity, as an individual and a fair degree of patience.
Using one-size-fits-all tactics to collect debt is never the right way and any agency worth its salt will always operate in a bespoke manner, according to the specific situation encountered.
How can Manx Collections help my business recover its debt?
If you are struggling with debt recovery and have accounts in your portfolio that have fallen into arrears, Manx Collections are here to help. We are adept at creating fair, cost-effective and stress-free solutions, tailored to each specific case. This applies to both regulated and unregulated debt.
We are also mindful that whilst many of our clients want to have their debt settled soonest, they also don’t necessarily want to alienate the client and jeopardise the potential for maintaining a profitable relationship in the future. The last thing we would wish to see is a fractured future relationship with the customer – whether it be a business or an individual. For this reason, we will always act with discretion and do everything in our power to ensure normal business channels can continue with the client once repayment has been made.
In outline, this is the Manx Collections approach to debt collection:
1. We will make a case assessment, talking through the history of how the debt has accumulated and what you want to achieve from our involvement.
2. You will be assigned a dedicated case manager, who will be your point of contact throughout the time that your case remains open.
3. To commence the process, we will make contact with the customer – initially by telephone, to introduce ourselves and to try and organise a prompt outcome.
4. If resolution isn’t immediately forthcoming, our experienced customer service advisors will work diligently on your behalf to speedily recover the debt.
5. We offer an extensive range of repayment options and, once we have received cleared funds, this money is transferred to an audited client account for your safekeeping.
However large or small your debt, if you think the time has arrived when the services of a debt collection agency could assist your business, call us on 0161 464 4400 or email info@manxcollections.co.uk
We are based in Manchester and work extensively across the UK – so wherever you are in Great Britain, we’re with you!
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