The six biggest misconceptions about debt collection
When it comes to debt collection, you constantly come across misconceptions, from image-damaging and disreputable business practices to horrendous debt collection costs for the creditor. Let’s dispel some of the most persistent of these.
- Debt collection companies will damage my company’s reputation.
- It is only worth engaging a collection agency if you are a big company.
- A collection agency cannot collect international receivables.
- When I engage the services of a collection agency, I no longer have any access to my own cases.
- With my cases, debt collection usually goes to court.
- Engaging debt collection services will be expensive for my company as a creditor.
1. Debt collection companies will damage my company’s reputation.
You can identify a reputable debt collection service provide by determining that it is registered as a debt collection company. In Germany this can be done by visiting www.rechtsdienstleistungsregister.de. Registration is mandatory for every company that offers debt collection services. Another indicator is if the organization is a member of an industry association. The biggest of these is the Federal Association of German Debt Collection Companies (Bundesverband Deutscher Inkasso-Unternehmen e.V. – BDIU). In addition, the Federal Association has strict requirements for its members with regard to lawful conduct and integrity. The BDIU has an independent arbitration board for settling disputes, which consumers can turn to. You can find the list of members in Germany at www.inkasso.de. EOS is involved in the BDIU and the Federation of European National Collection Associations (FENCA) and therefore upholds the industry standards.
Furthermore, respecting and protecting the reputation of all involved parties is firmly entrenched in the core values of EOS – for both fiduciary services and debt purchasing. EOS relies on both technological tools and people who have the skills to assess the individual situation of defaulting payers to come up with a good solution for all involved parties. Supported by data analysis, our service staff do everything in their power to settle the matter out of court and in partnership with the affected parties. The staff receive ongoing training for this.
2. It is only worth engaging a collection agency if you are a big company.
4. When I engage the services of a collection agency, I no longer have any access to my own cases.
5. With my cases, debt collection usually goes to court.
Are you interested in further information or do you have other preconceptions we can clear up? Please contact us to arrange an initial consultation. We look forward to seeing you!