I quickly learned that an online collection agency can be commensurately vigilant and stern when handling debtors’ accounts. Here’s a snippet taken directly from the homepage of one of these online agencies (www.psicollect.com) “We continually bombard the debtor with phone calls and demand letters by mail, e-mail, or fax if possible.”
“Bombard,” now there’s a word that gives me the willies. If there’s one thing people want to avoid at all costs, it’s a bombardment — even if it’s strictly verbal.
The shake-down tactics continue, “We [psicollect.com] can also perform asset searches, judgment searches, lawsuit searches, Corporate record searches, UCC filings, and a number of other resource searches to obtain the most up to date information available on the debtor. We are also now online with the same database used by law enforcement and the FBI. We can usually find a debtor in a matter of seconds and obtain their social security number, date of birth, current address, and other vital information.”
Holy cow! If these methods of persuasion go unnoticed by the debtor, an attorney practicing within the debtor’s jurisdiction is contacted. After legal action begins, the online collection agency tends to take a grumbling backseat role to due process — but the measures enacted before churn up unbelievable collection rates (www.psicollect.com insists – and I’d think twice before arguing with them – that 50 percent of debtors end up paying owed fees directly to the creditor’s business).
Hunting down delinquent debtors is the largest and most valuable service an online collection organization can render. Oftentimes, legal action — no matter what the agency’s tactics are — will have to be taken, but locating welchers to summon them before a judge is a strenuous and time-consuming procedure business owners and creditors simply do not have the time nor expertise for. Employing an online agency to act on your behalf (preferably one with access to FBI-related equipment) seems a stress-free and affordable way to ensure the collection of some fees (hopefully half or so) and ascertaining the location of remaining debtors for legal action.
Deciding which online collection agency to contact about delinquent accounts is certainly worth some consideration. Most agencies readily display their tactics for collection — perhaps some employ strong-worded letters, and some a constant bombardment of notices. If you’re, say, the town’s dentist or physician, the strong-armed tactics of certain online collection agencies may prove a bit unwarranted, not to mention damaging to one’s reputation and status in the community. Not all debtors are comfortable welching on accounts — many have few other options. Ruminating upon which collection methods to endorse with your business, therefore, is ultimately a valuable experience and important decision.
Finding the online collection agency that meets and surpasses your needs and expectations requires a modicum of online research and fact-checking. Be sure to take that time to find a company you can be comfortable with handling your clients (even if they happen to be former clients) and your accounts and money. And, if anyone from www.psicollect.com is reading, my check is in the mail. Word of honor.
By Jean-Pierre Lacrampe