What Do Debt Collectors Do?


The role of a debt collector can cover a lot of different areas, but in its most basic form, a debt collector is hired by a company to recover money that is owed to them.

Many very large companies will have their own in-house collection agencies but for those of you that don’t have the need or resources for an in-house collection department there are many debt collection agencies that specialise in helping business recover money that is outstanding.

In recent years these agencies have become even more affordable and flexible to cater for every size business from large companies right down to small solo contractors.

When To Contact A Debt Collector?

Each business is different and the right time to contact a collection agency will vary depending on the size of the debt, your relationship with the customer and many other details. But often it is best to make contact if a debtor (a person or business that owes you money) has an outstanding invoice and has not made an attempt to pay after 2 or more friendly overdue reminders.

Often the introduction of a debt collection agency is enough to get the debtor to pay immediately or at least set up a payment plam, but if they don’t there are a number of steps that a collection agency will take on your behalf to recover your debt.

Steps To Recovering Your Debt

A professional debt collector will do all they can to recover your debts before resorting to legal action. Below is JMA Credit Control’s approach to debt collection.

Final Notice – A letter reminding the debtor of the overdue account and requesting immediate payment or the implementation of a payment plan.

Letter Of Demand – JMA’s in house solicitors can draft a letter of demand on their legal letterhead demanding immediate payment.

Telephone Demand – If the letters are ignored JMA will follow up with multiple phone calls to try gain immediate payment over the phone or implement a payment plan.

Legal Action – At this stage JMA Credit Control will discuss your legal options and if necessary they can help you with all legal proceedings.

Credit Default Listing – JMA can also help you list a default against your debtor’s credit rating for unpaid invoices.

How To Choose A Debt Collector

Of course you need to be very careful what company you choose to recover your debts. There are many legal requirements and rules governing how you can recover debts and you may be liable if you hire a company that breaches these rules.

Things to look for…

  • How long has the company been operating?
  • Does the company have in house solicitors?
  • Does the company offer a no recovery, no fee service?
  • Do they provide a dedicated account manager for all your debts from start to finish?
  • Do they have testimonials of happy customers on their website?
  • Can you talk to a real person before lodging your debt?
  • Do they offer discount for multiple debts?

These are all questions a reputable and experienced agency should be able to answer for you. If you currently have outstanding debts and you’re still not sure if it is the right time to hire a debt collector you can call us for a no obligation chat to discuss the best next step.

Frequently Asked Questions


How do debt collection agencies tailor their approach when dealing with diverse business sizes and types?

Debt collection agencies adapt their strategies based on the business’s size, industry, and the nature of the debt. This tailored approach ensures that collection efforts are both respectful and effective, considering the unique aspects of each case.


What specific training do professionals within debt collection agencies undergo to ensure ethical and effective collection practices?

Professionals in debt collection agencies typically undergo training in negotiation, communication, and legal compliance to ensure they adhere to ethical standards while effectively recovering debts.


Beyond the initial contact and demand letters, what are some innovative strategies debt collection agencies employ to secure payment from reluctant debtors?

Agencies may use various strategies, including payment plans, mediation, and leveraging technology to maintain communication and encourage debtors to fulfill their obligations.

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