How to find collection agency
Obviously there is no problem if there is only one collection company in the country you have debt in, or you can easily determine obvious leader there.
However, in the most of the countries there are number of collection agencies and lawyers offering debt collection and it is hard to determine who is who.
This article will help to make right choice.
So, what is to consider when choosing the debt collection agency abroad?
References are almost always the best way to find partner. Check with reputable local collection companies what they can offer in the country you are interested in since they may have partners or office there.
Similarly, application to big international collection networks is also good idea, since they have either own offices or carefully selected local partners.
If that does not apply, on-line search is required to find a partner. The usual logic of on-line search applies here as everywhere on-line:
• the top results in organic search would probably indicate the best companies (long time in business, investing in their websites and marketing)
• English version of the website with good English will indicate professionals in international business. Remember, language is the first and main issue when working with somebody abroad.
• Debt collection company is better than lawyer collecting debts since it usually employs “no result-no fee” principle, while lawyers often takes retainers even in debt collection cases.
There are also important tips that may help you in further assessment and selecting of debt collection company:
Spend time to check whether company specializes on B2B or B2C debts.
The vast majority of international debts are B2B single debts. Bear in mind – there is big difference between B2C collection and B2B collection. Pay attention you are selecting among companies or lawyers, who specialize on international and B2B collection.
B2C mass collectors are good in what they do (mass collection of loans, debts purchase, etc) but they rarely invest in development of B2B segment, and usually they are not really interested in single debts, even if they are big international ones.
Check their membership with debt collection associations
Association with any international organization of collection companies (ACA, LIC, FENCA, GCS, IACC, etc) adds credibility to a company, since they must have passed entry checks of associations, paid memberships and try to follow the trends and best practices of international debt collection.
Ensure “no result – no fee” policy is applicable
“No result – no fee” is the best practice standard applicable almost everywhere around the world. Reputable debt collection companies won’t ask for retainer for amicable collection unlike most of the lawyers. Therefore, lawyers are recommended to be considered only as backup option when no applicable collection company is found in the country.
Also bear in mind, in some countries “no result-no fee” policy is not applicable due to legal restrictions, so even collection company may take small start fee or negative fee. Also “no result – no fee” does not apply for collecting money via legal actions in court.