PSI Prestige Services Inc offers tips for finding the best Collection Agency

OMAHA, Neb. - Oct. 15, 2014 - PRLog -- Finding a good collection agency is a daunting task in this day and age.  There are literally thousands of collection agencies in the US and yes... there are a lot of bad ones out there.  Here is what you should look for when seeking an agency to assist you on your past-due accounts.

PSI-Prestige Services, Inc. founder, Joy Baird states that there are a large number of bad agencies that tend to give good agencies an undeserved bad reputation.  Baird states that her agency has actually received claims against other agencies that had collected funds from the debtors but failed to remit the collected funds to their clients.  In these instances, the agencies used were out of States where they were not required to be licensed or bonded and there was no oversight by State authorities.  Also, the agencies had only been in business a rather short period of time.  Baird suggests that companies seeking a good collection agency check the following information.

1.  Check their Better Business Bureau rating and see if they are accredited with the BBB.

2.  Determine if they are licensed and bonded.

3.  Verify how long they have been in business.

4.  Google the agency to determine if there are any valid complaints against the agency showing up online.

5.  Call the agency and speak with a representative to get a feel for the agency and if you like what they have to say and what they offer.

Baird also suggests that you determine what type of claims the agency handles. The majority of agencies in the US are “consumer” agencies that handle claims against consumers such as credit card collections or medical collections.  As such, they rely on volume and the files are often worked through an automated system with automatic dialers or even outsourcing to call centers.  There is very little personal “hands on” contact with the files and generally the collection agents are not trained to handle complex commercial files or dispute resolution issues.  There are actually very few agencies that specialize strictly in “commercial” collections.  This is important as commercial claims require a much more diplomatic approach and can involve mediation between parties and can be infinitely more complicated.  If you have commercial claims (against businesses or DBA’s) you really need to find an agency that specializes in commercial claims to assure your files are being handled professionally. Baird states “Consumer collection agents who are not properly trained tend to believe that being nasty and aggressive is the best way to collect money.  Nothing could be further from the truth and being rude to a debtor will only result in angering the debtor and creating an atmosphere where resolution discussions break down.  You can be firm while being diplomatic and this is the best approach for successful resolution discussions with a debtor. Our agency has been in business 18 years and we have learned that you have to convince the debtor to want to pay the account.  There has to be an incentive for them to pay and attacking them is certainly not going to be the incentive they need. Diplomacy is key to keeping the lines of communication open.  Without that, your chances of resolution drop dramatically.”

Finding an agency that is a good fit for your company doesn't have to be difficult. Spending the time to verify basic information could save you a lot trouble and could prevent the risk that you end up with an agency that may not be financially sound, may not remit to you the funds collected, or simply do not have the techniques to be the most effective at collecting from your debtors.  Spending 10 or 15 minutes to do a little due diligence on an agency is definitely worth it. Just remember that the agency you choose is also a reflection of your business.