You may think your company has a handle on collecting past-due accounts, but the world of consumer and commercial debt collection is vast and complicated. In order to ensure that your team stays compliant with debt collection statutes and federal debt collection laws, it can be crucial to collaborate with a third-party debt recovery service like CMC. Here are five reasons using a debt recovery service can benefit your business.
Compliance and Legal Protection
One of the most complex areas of bad debt recovery is ensuring that you are always in compliance with state and federal debt collection statutes. Outsourcing your consumer or commercial debt collection ensures that you are protected from legal ramifications associated with the collection of the debt. Professional debt recovery services know the law and will act in a manner that reflects well on your company. Working with a third-party ensures that the debt collection tools and methods used are in full compliance with the law. At CMC, we stay up to date in the industry, and we maintain affiliations with organizations like the Better Business Bureau, the Association of Credit and Collection Professionals, and more.
Advanced Technology and Skip-Tracing
Third-party debt recovery services often have access to advanced technologies that are not available to your team otherwise. Whether a person is actively avoiding debt collection, or has simply moved out of state or out of the country, our debt recovery team has the skip tracing technology necessary to identify valid and up-to-date contact information. Furthermore, we use the latest payment scoring tools available to analyze the data around likely repayment, and determine the most effective debt recovery methods. CMC’s newly implemented virtual call agent technology also helps generate best in class results by adding another point of contact and allowing debtors to self-serve.
Customer Care and Account Maintenance
In-house debt collection is complex and time consuming. Using an outside debt collection agency means that your customer accounts will be maintained with accurate location, contact, and asset information. You will have experts handling the complex paperwork involved in consumer and commercial debt recovery, such as calculating interest rates and court costs, executing promissory notes, and recommending legal action if necessary.
Successful Debt Recovery
It’s likely that you will have a much higher consumer or commercial debt recovery rate if you use an outside debt collection agency. A report from ACA International found that, on average, third-party collectors obtain $7 for every $1 they charge. We can identify assets and locate those who may be trying to escape their responsibilities, and we are experts in negotiating repayment plans and settlements with past customers who may have never repaid their debt otherwise.
CMC has been providing full-service accounts receivable and collection management programs across several industry segments since 1966. Over the decades, clients have seen results from our team of experts. You may not know all the ins and outs of the collection industry, but we do. Our insider knowledge of the debt collection industry means we know exactly which techniques work and which don’t. And we always aim to provide a world-class customer experience while delivering value to your company.
If you’re ready to use debt recovery experts to manage your delinquent accounts and initiate repayment of bad debt, contact us on our website or call us at (412) 937-0900.