How to Hire A Debt Collector
Debt collection agencies provide companies the ability to get back hard earned money and make better, more profitable financial decisions.
However, many business people shy away from employing a collection agency for one reason: they don’t know how to go about selecting or hiring a collector in the first place.
Although it may seem like a daunting task in the beginning, finding the right debt collection company that will get you the best debt returns possible is actually an easy and painless process when done correctly.
- Start researching collection agencies by contacting prominent collections industry membership associations, who can give you names of reputable companies both nationally and in your area.
- Once you’ve narrowed your selection, do everything you can to learn about this collection company and how their operations run. Learn about their corporate history and, if possible, take a tour of their facility and meet as many of the staff as you can, including the collectors. Remember: these are the people that will actually be collecting the debt from your customers, so you want to make sure they are both professional and positive.
- Besides finding out how the agency’s collection campaigns work, also ask them about their corporate goals and the goals they have for your debt accounts. The key to the best relationship with your collector is to find an agency that shares similar values to your own company and has the same expectations for collecting your debt.
- Determine how you want your accounts to be worked. On average, a collection company who uses several different collection methods, as well as one that will customize its collection efforts specifically for your debt accounts and company needs, will be most successful. For example, collection calls have been proven more effective at generating payments, and larger ones, than written collection letters; however, if you don’t want your customers being called on the phone, you may not want to use an agency who relies on this method alone.
- Make a choice, and remember: price isn’t everything. Just because one collection agency offers the lowest collection rates doesn’t mean that they are going to perform the best on your accounts. Most importantly, you should never have to pay a collection agency that doesn’t collect any money on your accounts.
These steps aren’t exactly the final “how to” in hiring a collection agency, but they are definitely important factors that should be considered when outsourcing your debt collection needs.
Ultimately, the collection agency you choose should be one that you have a professional, yet comfortable, relationship with as well as the ability to get the best debt returns on your accounts. It’s not as hard as you might think, so good luck and happy hunting!
Medical Debt Collection Becoming Big Business for Agencies
As the healthcare industry in the United States continues to grow, so too does the amount of unpaid medical debt owed to hospitals, doctors, and insurance companies.
According to the American Hospital Association, these unpaid debts, which are comprised mostly of self-pay accounts, totaled more than $31.5 billion in 2006 and have continued to rise since that time.
However, many of these debts are never collected because medical administrators worry about the negative effects that hiring a debt collection agency to recover unpaid accounts could have on patients’ attitudes.
“The healthcare industry has become increasingly competitive in the last several years, so hospitals and medical professionals think that using a collection agency to recover their unpaid bills will scare away patients,” explained our COO.
“The stereotype in the past has been that debt collection is cold-hearted and mean, but with a reliable collection agency, that isn’t the case anymore.” In reality, healthcare businesses can drastically improve their accounts receivable through a debt collection company without having to sacrifice customers.
The key to doing this is choosing a collection agency whose methods and objectives match their own organizations’ goals.
Also, companies interested in using a collection agency should do their homework: taking a tour of the agency’s offices, researching agencies that are members of Intercol International, and talking to the company’s other major clients.
Through these simple measures, members of the healthcare industry can rest assured that they are employing a collection agency that will match their company’s debt management needs with its customers’ desire to be treated respectfully and fairly.
Overall, the climate for debt collection has never been better in the medical industry. “It’s becoming more and more critical for hospitals and other medical facilities to start collecting their unpaid debt and getting more money back into their operations,” Lane concluded. “By doing that, companies have more cash flow to invest in ways to make their customers happy.”