Debt Collectors:
Business Owner Guidelines

Problem debt collectors are on the rise, due in part to a bad economy, increasing job layoffs, and mounting consumer debt. Although most collection agencies operate ethically and within legal guidelines, some are tempted to "skirt" laws and human decency to maximize their profits.

As a business owner, you're probably facing your own debt collection and cash flow challenges. Whatever successess (or lack of) you're having recovering your past due accounts, you may be entertaining the idea of hiring a collection agency for the first time.

You've most certainly heard some of the horror stories on the part of some debt collectors, and understandably, you're concerned about your business' reputation and standing in the community. Sure, you want and deserve the money owed to you. But you want nothing to do with some of the practices that you're hearing about in the news.

Here are some sobering facts:

• The Better Business Bureau reported a 43 percent increase in complaints against debt collection agencies in 2008.
• The Federal Trade Commission said that in the last three years, it received more complaints about debt collectors than against any other industry.

Some common issues include collectors using harassing, profane and/or threatening language, calling debtor's place of employment against their clearly stated wishes to the contrary, and sharing debtor information with others, besides the debtor.

As a business owner, its important to do your due diligence before hiring a collection agency. Check their standing with The Better Business Bureau; call the attorney general's office in their state to see what, if any, complaints have been filed against them. Make sure they're a good standing member of ACA International, a collection and credit industry trade group that maintains a code of ethics against the aforementioned kind of behavior.

Again, it should be made clear that most debt collectors operate ethically and fully within legal parameters. Its the ones that abuse the system that get the most attention and that we hear about. These illegal practices should be punished to the fullest extent of the law to protect consumers.

Fact is, collection agencies serve a very beneficial service to the health of our economy. According to an ACA International study, the collection industry saves the average American $351 yearly. This is how much additional money a household would have to spend if businesses were forced to raise their prices due to bad debt.

If you're interested in a collection agency quote, fill out the quick form below. One of our consultants will contact you within 24-48 hours. You can be assured that we've done our due diligence, and we only consult for reputable agencies that we're sure operate both ethically and legally.