As the unemployment numbers rise during the pandemic and more people fall deeper into debt, businesses struggle to collect payments and pay their dues. This vicious cycle results in more companies closing their doors permanently, causing even more unemployment.
In the past, most businesses would simply hire any collection agency to recover revenue from their delinquent customers. Unfortunately, many debt collectors use confrontational or shady tactics that are quite distasteful during these unique times.
As a business that must collect its outstanding payments in order to pay rent, utility bills, and salaries, you must hire an ethical consumer collection agency to get the money you’re owed promptly and without breaking any laws or ethical boundaries.
Customers Don’t Respond Positively to Threats from Debt Collectors
Unlike other debt recovery firms, an ethical collection agency takes a diplomatic approach to the process by treating people with dignity and respect. Studies suggest that most people want to pay their dues and respond better when treated with humanity. They’re less likely to cooperate with a collection agent who uses vulgar or threatening language.
Likewise, delinquent customers are less likely to pay their dues if an agent harasses them at home, work, or calls their friends and family. In addition, customers who feel mistreated are more likely to post negative reviews online for your business. In the digital age, reports from abused customers can quickly go viral, turning into a PR nightmare for any company.
The FBI Takes Notice of Aggressive Debt Collection Tactics
Over the years, the government has heavily fined and blacklisted many companies that use aggressive debt collection tactics or violate the rights of customers. For example, did you know that the U.S. Supreme court strengthened a law banning robocalls? Aside from telemarketers, shady collectors also use robocalls to harass customers at all hours of the day. Such tactics can result in expensive legal action.
Ethical Debt Collection Agencies Aren’t Toothless
You might be wondering how ethical debt collection agencies manage to boast higher than national average recovery rates when they refuse to use negative tactics. The right ethical debt collection agency is far from toothless.
For many agencies, a demand letter is often enough to recover a debt. If this doesn’t work, an experienced agency may draw on their experience and skills to negotiate payments with your debtor.
Remember, most debtors want to ease their financial burden by paying off their debts. An honest debt collector who has been in the business for decades helps debtors find a way to pay what they owe. Sometimes, this means dividing the debt into a more manageable amount or forgoing the late payment fees.
Of course, some debtors simply don’t want to pay their debts even if they have the means. For difficult debts, experienced collectors use harsher tactics. For example, without being rude, they may take a sterner tone, or they may consider reporting the delinquent account to the three major credit bureaus.
Most people value their credit scores and report. When most debtors realize that their credit score will be negatively impacted, they usually agree to work with a consumer agency that’s treated them with respect. When you work with an ethical collection agency, you can collect your payment and protect your reputation.