What is it?
If you have used your credit card to the most of its uses and if you feel that clearing your credit card bill is not necessary, think again. Leaving any credit card bill unpaid for more than six odd months will result in your creditor remanding the full amount that you are entitled to clear to a debt collection and recovery agency. This could have bad repercussions as you would then be blacklisted, making it impossible for you to opt for any other credit cards facility. Debt recovery, simply put, is an act of recovering any outstanding debts from the debtor.
How does a collection and debt recovery agency work?
Running a business is great if everything functions properly. Business will definitely not be great if there are some debts to be cleared. An appropriately conducted debt collection and recovery can help your business avoid immense financial losses. The agencies specialising in such recovery profiles use methods that are crafted to obtain quick and effective results where collecting debts are concerned. Maintaining great customer relations is a must, but when this kindness is mistaken for weakness, debt collection agencies act as a buffer between your company and the debtor.
Debt collection and recovery policies
Before resorting to the services of a debt collection and recovery agency, certain precautions need to be taken to ensure that everything is done legally. Firstly an accurately up to date record of every customer must be maintained. If the customer seeks credit from your company, he/she must be made aware of the terms and conditions of your company and must provide assurance to abide by the rules. Other methods include a follow up of the overdue account, send out notices to the customer, follow up with phone calls and face to face meetings. After all this is done it is then justified to freeze the debtor’s account. Debt collection and recovery is essential for the smooth functioning of your company.
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