I have worked in debt collection and in my experience you need to really think about what you want from your debt collection agency
before you hire one.
For debts where there is some kind of contractual breach (e.g. early termination of service resulting in a penalty payment the client refuses to pay) I would generally advise using a solicitor, as negotiation will be required.
Debts where there is a clear breach of the credit payment period are more generally suited to using a debt collection service, since there is less likelihood of a dispute.
Whichever debt collection company you chose - the one I have been involved with is linked here in the recommendations thread:
http://www.askaboutmoney.com/showthread.php?t=107718
You need to think about what you are looking for:
- Are you looking to outsource your entire credit control function?
- Is it a hit-and-hope exercise of sending out a few vaguely threatening letters looking for payment, in the hope a few clients will pay up?
- Do you expect regular phone-calls or personal visits?
You should get in writing the clear terms and conditions of your contract with the debt collection company. This will specify your expectations for each debt pursued in terms of how many letters, phone-calls or visits will be made and what the procedure to be followed is.
Never leave this up to debt collection company as they will simply ignore any smaller debts (small for them, they may be big for you) you give them.
Also be sure all ancillary charges and commission are clearly specified in the contract.