When interviewing a collection agency, ask about their experience, methods, and success rates. Ensure they align with your business values and needs. There are clever and quick ways to find this our without spending too much time.
How to Check if a Collection Agency Will Not Destroy Your Reputation
Start by reviewing their online ratings. If an agency has a strong Google rating, it’s a sign they approach collections with respect and diplomacy. An agency that values its own reputation is likely to protect yours as well. A good rating will also alleviate several other concerns.
Data Security and Compliance Check
Request the names of their top 10 clients to gauge their credibility. If you recognize some well-known companies among their clients, it indicates these companies likely conducted their own thorough due diligence before hiring the agency. This recognition can save you time by providing confidence in the agency’s credibility without needing to dive into every detail.
Also, ask for written documents about their policies on compliance and data security. If they verbally assure you without providing written documents, it likely means they don’t have a clear policy. Definitely check the documents that you feel are important, but probably need to read every single document —this is just a smart check to ensure the agency is reliable, secure, and aligned with your compliance needs.
Here are the documents to ask for:
- Company Compliance Management
- Collection Policies and Procedures
- FDCPA Training and Testing
- Consumer Financial Protection Bureau Compliance
- Quality Assurance and Auditing
- State-Specific Restrictions (FDCPA+)
- Fair Credit Reporting Act (FCRA) Compliance
- Dispute Procedures
- Communication Policies (Telephone, Email, Texting)
- Legal and Regulatory Compliance
- Statute of Limitations
- Data Security Policies
- SOC 1 Audit Certificate
- Information Security (Infosec) Policy Agreement
- Intrusion Detection
- Disaster Recovery Plan
- GLBA Security Compliance
If they provide clear, documented procedures, it shows they are serious about protecting your data and adhering to regulations. These documents can also serve as a reference in case of future disputes.
Do they have a Good Customer Service?
Good customer service is crucial when hiring a collection agency, especially if this is your first experience with collections. Questions will undoubtedly arise, and having reliable support ensures you get the help you need when you need it.
A single point of contact is ideal. If they mention a toll-free customer service number, request it and test it during business hours. Check how quickly you reach someone—ideally within 2-3 minutes. If prompted to leave a voicemail, note how soon you receive a callback.
Inquire if they offer one-on-one client portal training and if there are PDF or Video tutorials available. While you don’t need to review these in detail, this will help you gauge their commitment to customer service.
Do they offer Fixed-Fee Written Demands?
Collection agencies do not make much money in collection demands service, however this is a great deal for clients who have debts less than 6 months old. Going purely for contingency collections can potentially increase your cost by many folds. Contingency collections is more cost-effective for accounts more than 6 months old.
Is the Collection Agency Licensed to Collect in all 50 states?
It’s crucial that collection agencies operate with national licensing, ensuring consistent standards and oversight across all states. Unfortunately, agencies without this license often resort to partnering with local agencies, potentially leading to your sensitive data being shared with multiple entities without your explicit consent. This fragmented approach raises concerns about data security and privacy, underscoring the need for comprehensive national licensing in the collection industry.
Do they Perform a Litigious Debtor Check?
Most collection agencies perform standard checks like skip tracing, bankruptcy verification, and credit reporting. However, few dive into a debtor’s litigation history. It’s crucial to recognize that pursuing collections from someone prone to suing can be risky and resource-intensive. If the outstanding amount is relatively small, it might be prudent to avoid the potential legal entanglement and write it off as a loss.
These are smart checks which ensure that you are hiring a good collection agency and not the one who is ready to cut corners.