How Does a Debt Collection Agency Differ From a Business Debt Collection Attorney?
By Space Coast Daily // October 27, 2020
Debts can be frustrating to deal with, but so too can the things that orbit them. As it were, dealing with debts owed to you is not quite so simple, as there are going to be some details that might blur together and seem somewhat indistinguishable.
For example, one question we hear at times is what the difference is between a debt collection agency and a business debt collection attorney, and quite frankly, it can be a little confusing as to which one of these entities is going to be the best choice for managing your debt collection.
It is a frustrating thing to grapple with, so we will explain the differences so it’ll be a little clearer for you, and thereby make it easier to get the debts that you are owed.
The difference between a debt collection agency and a business debt collection attorney
No matter which of the two types of debt collectors you take, most businesses tend to favor hiring such a specialist to ensure that the process goes as smoothly as it possibly can.
Going at it on your own may be the cheaper option initially, but the smallest mistake or the slightest wrinkle encountered during the exchange between you and those who are in debt to you, leading you to possibly worsening the situation and making it more difficult and costly to get your debts addressed.
For example, perhaps when you address this person, you say something that causes them offense or makes them otherwise feel less inclined to want to pay you back.
Either you may be too forceful and make them feel antagonized, or you may be too passive and make them feel as though they can kick the can down the road. As a result, you are strong encouraged to find a partner that can handle the discussions and collections.
They know how to communicate with people, how forceful they can be without creating an incident, and when things need to escalate further.
A good debt collector will approach them in a non-antagonistic but firm way, initially informing them of their debt owed and the expectation that they pay it back within the range of time allotted, and if that does not help, it may be escalated further yet.
They may also negotiate a payment plan, allowing the person who owes a debt to pay it over time instead of having to pay it all in one lump sum, eventually getting you your money while making the debtor feel more comfortable paying, as they will not be impacted in the short term.
After all, you don’t want a debt collector that is just going to be going aggressively at the debtor.
The debt collection agency takes on the responsibility of gathering this debt, with them getting some money in exchange for their collection services.
It becomes complicated when you have to figure out what kind of debt collector(s) you want to work with to get things done.
One of the biggest differences between going with a debt collection agency and a debt collection attorney is the service that they are offering.
They both certainly serve in the capacity of debt collection, but one advantage that you may find with going with an attorney is that, if you expect that you will have to go to court to compel the person who owes you money to pay up through legal means, they can more easily help you through that process.
A debt collection attorney is usually consulted in the event that debt collection efforts you have already made have, unfortunately, fallen through.
A debt collection agency and a debt collection attorney are a great combination overall if you think that it can be solved without taking the matter to court, though you may go with one or the other depending on the circumstances.
This will also make it come at a cheaper price if you legitimately think you can go with only one or the other, but going with the legal process first may make it more costly than it needs to be in the event that it may have been resolved without taking it to court, while going with only debt collection may make it take longer and cost more if it ultimately has to go to trial.
You may be expected to give a payment from the debt collection in addition to attorney fees if you go with a debt collection attorney, so you should certainly be mindful that you go with the best fit for you.
But just like any other attorney for a business, a business debt collection attorney is going to be paramount for getting things done in a legal context One article, however, is simply not going to be able to answer all of your questions regarding the differences and nuances between a debt collection attorney and a debt collection agency, so one of the best ways to go from here is to get in contact with an attorney or owner of such an agency that can give you more information on either of their processes.
When choosing a partner to work with through the debt collection process, you need to make sure that you go through the process of picking someone who is right for you and picking debt collectors with a history of success and good communication, among other qualities.