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Collection Agencies in the UK



The following also applies to Collection agencies in the United Kingdom however recently methods of debt collection in England have come under scrutiny by the media.


 


Some collection agencies in the United Kingdom will collect a variety of debts for example commercial debts (debts owing to banks and catalogues. Collection agencies sometimes collect on behalf of the government whereby they collect overpaid state benefits or benefits that have been obtained fraudulently. Collection agencies sometimes collect for sole traders that have a few debtors.


 


The method of collection is similar in the United Kingdom to the United States of America Debt collectors are often heavy handed with their tactics for collection that it gives of connotations of bullying, even though collections agencies are constantly coming under-fire there is no firm proof of collectors bullying debtors.


There is no strict guidelines on how to collect a debt however there are certain things that are imperative to be an effective debt collector ...

1. Confirm that you are speaking to the right person by asking them to confirm their name, address and Date of Birth if necessary. Often debtors will refuse to answer these questions as the collector has not fully identified themselves, they often only do this once they know they are speaking to the correct party.


 


2. Ask if the debtor can pay the debt in full today by either a debit or credit card


 


3. If not when can the debtor pay the debt in full


 


4. If the debtor cant then the collector can offer a settlement figure meaning that the collection agency allows a reduction of 25% to see if the debtor can clear that amount at a reduced rate. A collector cannot offer a reduction for government debts.



 


5. If the debtor cannot do that either then the collector should ask can the debtor pay in 2 halves.


 


6. If the debtor cannot do that then the collector needs to ask profile question about the debtors financial situation for example are they working? do you have a mortgage? what are your monthly in-comings? what are your monthly outgoings?


 


7. Once a collector has this information he can either make an offer to the debtor or take an offer from the debtor, for a point of negotiation its better for the collector if the debtor makes the offer.


 


8. Once an offer has been made and accepted the collector then needs to establish a way of the debtor to pay whether it be by debit card, credit card (This cannot be used for government debt,) Direct debit, Bank Transfer, Standing order, Postal Order, Giro Slip or the debtor may live near the collection agency and can go into pay their debt in a cash office.


 


9. Once that has been decided the collector and the debtor need to a agree on a date for the payment this is commonly at the end or the beginning of a month as that is when most people get paid.


 


10. After the payment arrangement has been placed the collector should leave the companies telephone number and reference number (and address if the debtor is sending in a letter) so that if the debtor is having problems with keeping up with repayments they are able to call the collection agency and re-negotiate.


 


11. At the end of the call the collector should finish by advising the debtor of consequences of non-payment.

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