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Common Myths About Collection Agencies

Posted by Emily Herrington on Dec 14, 2020 10:00:00 AM
  1. Using a collection agency is too expensive.
    The benefits of using a collection agency far outweigh the costs associated with them, as long as you are working with an agency that has a high recovery rate. Companies that spend months and sometimes years trying to collect on old accounts are often just spinning their wheels. Agencies with long histories of success can collect quicker and easier than you ever thought possible, turning your aged receivables into bottom-line revenue.
  2. Collection agencies only work on very old accounts.
    Collection activity goes through many phases. Outsourcing receivables, for instance, is the process of using a collection agency partner to do a “soft-touch” method of collections that may simply be calling a client on day 31 and giving them a gentle reminder that their bill is due. This outsourcing activity may last 30, 60, 90 days or longer until it is moved into a more traditional collections process that involves letters, more frequent phone calls, texts, emails, voicemails, and other collection efforts. From there, agencies will work with their clients to score and sort bad debt, and eventually move on to litigation, if necessary.
  3. A collection agency will just upset my customers, or my patients, and I’ll get a bad reputation.
    Threats and abusive language is prohibited by federal law, and any agency engaging in such activity will face severe consequences. The best agencies recognize that they are ultimately the face of the business they represent, and as that agent, they should be conscientious of the fact that the customer or patient will associate their activity with the businesses they serve. It does not behoove a collection agency to damage relationships with the customers of their clients.
  4. Collection agencies do not want to work with a small business.
    Many collection agencies such as Account Resolution Team, understand the value of small businesses and the positive impact that they have on our communities. Our economy thrives on small and large businesses. Collection agencies that embrace their small business partners have deeper relationships with the businesses that they serve in those same communities.
  5. All collection agencies are the same.
    In reality, collection agencies vary as much as any business in any industry, just as no two doctor’s offices, restaurants, or banks are exactly the same. Some agencies charge monthly fees, others are contingency-only. What is most important though, is that you choose an agency that has a longstanding history of success and very high recovery rates.
  6. Collection agencies cannot find clients that change their address and phone number multiple times.
    While this is certainly true with some agencies, it isn’t a fact for those of us with the latest innovations in technology. Account Resolution Team was instrumental in the development of the leading debt collection software in North America.
  7. When it comes to collection agencies, meaner is better.
    Showing empathy, validating fears, providing support, and building trust have not always been core objectives for many collection agents. For this reason, consumers often respond to collections communications negatively as they are already on-guard before the framework of the solution can be established. Account Resolution Team understands this level of heightened human need and takes steps to promote kindness during the collections process.
  8. It is not worth the time it takes to get a collection agency all of my accounts.
    This is the prime reason that technology plays a critical role in the adaptation of late accounts into a system. For Account Resolution Team, gone are the days when mass uploads required manual entry into a system. By utilizing state-of-the-art technology, accounts can be loaded immediately into the system, streamlining the process that begins collecting accounts to turn aged receivables into bottom-line revenue.

For more information on how Account Resolution Team can help YOU get your money, call 423-586-7613 or visit www.accountresolutionteam.com

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Topics: Insider, Collection Strategy, Compliance, Technology

'100 Years of Collections', A White Paper

Posted by Emily Herrington on Jul 27, 2020 10:12:00 AM

Did you know that 61% of consumers have been negatively impacted by COVID-19? The greatest increase in bad debt began in March 2020, and as a result, the largest phase of third-party collections is estimated to begin in October of 2020, extending well into 2021. 

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Topics: Insider, Collection Strategy, Compliance, Technology, old debt, debt collections, collection agency, unpaid debt, revenue

Debt Collection 101: Regulations and Compliance

Posted by Joey Nichols on Jul 20, 2020 8:00:00 AM

Compliance management is a disciple that can not, and should not be taken lightly no matter what industry you are in. However, when it comes to collections, it is even more pertinent to success. Over the years, new regulations and compliance policies are enforced and/or amended, differentiating the way agencies collect and emphasizing the need for adaptation. Although collectors are legally entitled to attempt to collect all owed debts, there are restrictions on the methodology they utilize including the Fair Debt Collection Practices Act, Fair Credit Reporting Act, and Software Compliance.

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Topics: Insider, Collection Strategy, Compliance, Technology, debt collections, collection agency

Technological Needs in Debt Collections

Posted by Joey Nichols on May 25, 2020 8:15:00 AM

Advancements in technology have left a massive impact on the business world, and this is no different for the collection industry. Technology has made it easier for collectors to stay up-to-date by tracking the status of unresolved accounts, contact debtors, and, collect payments. No matter what your business goals are—to collect, gather insights, gather questions answered, or all of the above–odds are that technology has streamlined the process including remote agents, chatbots, and online bill pay.

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Topics: Collection Strategy, Compliance, Technology, debt collections, collection agency, recovery rate

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