Debt Recovery – Choosing your Debt Collection Agency

Debt Recovery – Choosing a Debt Collection Agency of the right size and shape


At the top of the Debt Recovery Services industry are a small number of giants who employ hundreds of professionally trained staff sitting in state-of-the-art call centres. They usually also buy debt portfolios.

These Debt Collection Service Centres work for a small number of clients, usually the largest providers of consumer debts, i.e. banks & financial institutions, utility companies, and government, pursuing large volumes of consumer debts.

In the mid-market are the well-structured Debt Collection Agencies that work for companies of all sizes, one-man-bands, SMEs or large companies, from all industry sectors, and that can collect business debts and consumer debts.

A Debt Collection Agency will sometimes specialise in a specific industry sector or a certain type of debts, such as student loans and other education sector debts, gym memberships, construction industry, veterinary practices, etc.

Many Debt Collection Agencies are able to take on Debt Recovery work from most industry sectors and collect both business debts and consumer debts alike. In the mid-market place are also the servicers to the large Debt Collection Agencies mentioned above.

Finally, there are hundreds of one-man-band Debt Collection Agencies, some being very specialised and successful.


Choose a Debt Collection Agency offering the service level which is right for you


When choosing a Debt Collection Agency, companies need to realise that service levels do vary from one Debt Collection Agency to another.

Depending on your requirements, you may need a Debt Collection Agency equipped with the right technology to handle large volume of small value consumer debt collection cases.

At the other end of the spectrum, if you have a few debts to recover from non-paying clients from time to time, you will require a one-stop-shop Debt Collection Agency able to professionally manage the entire Debt Collection process from amicable Debt Collection negotiations carried out by well-trained high calibre negotiators through to legal Debt Collection in the County Court managed by in-house legal executives.

Companies will also need to decide what kind of reporting they are looking for. Depending of the nature of the debts and volumes involved, reporting will usually range from a summary report with figures and status positions to a detailed written report making recommendations on a debt by debt basis.

Remember that a Debt Collection Agency has a lot of experience when it comes to collecting debts and should be able to advise you as to the best strategic approach in order to successfully collect a debt or batch of debts, so do discuss your requirements with an open mind.

The right debt collection agency for you may or may not be the one you have been recommended by another business owner operating in a very different industry sector to yours.


Choose a Debt Collection Agency which will preserve your client relationship


The best way to ensure that you are selecting an ethical Debt Collection Agency is to check that your debt collection agency is a member of the Credit Services Association (CSA) by clicking on the link


The CSA is the sole professional Debt Collection Agencies Association in the UK. All its members strictly adhere to the CSA Code of Practice


Choose a Debt Collection Agency which is financially stable


Of the 193 Debt Collection Agencies which were individually assessed in the Plimsoll Debt Collection Industry analysis of June 2018, only 83 Debt Collection Agencies were rated as financially strong, but more worryingly, 48 were tagged as “will struggle to survive the next 12 months” … Therefore, companies should not forget to check the credit rating of the Debt Collection Agency they are planning to use.

Generally speaking, it is good practice for companies to check the credit rating of all of their suppliers to ensure that their sourcing, both for goods and services, is safe and uninterrupted. A company in good financial health is also more likely to be managed well and provide a reliable service.

Companies seem to always check the credit rating of their clients to ensure that they can expect to be paid on time, but unfortunately, often omit to do the same for their suppliers. When it comes to your Debt Collection Services supplier, remember that your Debt Collection Agency often handles your cash through its “trust bank account” so checking the financial strength of your debt collection agency is paramount.


The Debt Collection Agency you select for your debt recovery should be a member of the CSA that understands your industry, is financially stable, and is capable of delivering the service levels you require. For more information, please get in touch with our debt collection, international debt collection and credit control solutions specialists.