Why should I use a debt collection agent rather then a solicitor?
They work on a ‘no debt collection – no fee‘ basis and charge 5 – 15% of amounts collected, depending on complexity and volume. Good ones collect over 80% in the first month because of their third-party effect and full-time effort. Send all undisputed debts below a certain value to an agency after a certain time. This releases your own resources to collect large, current amounts from active accounts.
This Debt Collection Agent Checklist sets out the key information which the credit manager should have to hand when appointing a debt collection agency.
Using a debt collection agent rather then a solicitor will save you time and money. We only charge a fee if we are successful in recovering your debt and aim to do so within 90 days, however a solicitor will charge you an hourly rate and proceedings could take several months. Taking a debtor straight to court does not guarantee success, you always run the risk of walking away with nothing but hefty litigation and court costs.
