Can Using a Collections Agency Benefit Medical Facilities?
Medical facilities have a large ecosystem they need to manage. For medical facilities, that includes doctors, nurses, patients, janitorial staff, and more competing for the management team’s attention. During the course of their days, things can fall through the cracks and not receive the attention they deserve, such as following up on overdue bill collections from patients.(more…)
Can Universities Benefit From Using a Collections Agency?
When it comes to debt associated with colleges and universities, most people immediately jump to student loan debt. However, these aren’t the only types of debt that college students can accrue over time, and in many cases, these faculties need help collecting the outstanding debt. By utilizing a third-party debt collection agency, universities can have a dedicated team to go out and handle the education debt collections process and ensure you receive the money you are owed.(more…)
Why Ensuring Compliance Is Essential to Collecting Business Debts
Debt collection has undergone tremendous changes over the years, especially with the introduction of federal and state rules and regulations. In the current and deeply regulated business environment, there is continued pressure to comply with regulatory requirements. Compliance, which refers to following all legal regulations and laws when conducting business, should be a top priority for collection agencies.
AR Resources understands and implements the primary objective of acting ethically and responsibly through a well-defined compliance system. Fair debt collection practices must strive to maintain principles of what they can and can’t do to businesses and consumers in debt. This is because debt collection is a sensitive field that should uphold fairness, law, and high professionalism.
Importance of Compliance in Collection Agencies
Compliance determines how an agency like AR Resources controls, manages, and navigates around complexities, growing cyber-security issues, and other concerns. It helps an agency abide by and respect the debtors’ privacy laws without disclosing information to unauthorized parties. Also, effective compliance systems make sure that collection agencies:
- Avoid vulgar language and abusive practices always
- Provide fair treatment of debtors as provided by federal, state, and local laws and regulations
- Issue proper notification regarding collection
- Prioritize consumer complaints
- Conduct audits to assess compliance with consumer regulatory and protection laws
A strong compliance culture also helps AR Resources lower reputational and litigation risks as well as regulatory and legal violations.
How to Cultivate and Sustain Compliance in a Collection Agency
With the numerous laws and regulations set, a debt collection agency may find it challenging to sustain compliance. But here’s what to do.
Under a compliance structure, an agency should ensure that all new employees undergo comprehensive training to understand federal and state law requirements during debt collection. This measure helps agencies such as AR Resources retain a lasting and robust relationship with clients.
When notifying or contacting a debtor, collectors should identify themselves appropriately and with respect. Debt collectors should avoid calling at inappropriate times such as late evening or early morning hours.
Acquire Tracking Software
Besides training and encouraging professional behavior, collection agencies should invest in phone tracking software. This technology helps agencies to prevent any compliance violation activities.
Our staff at AR Resources are dedicated to compliance with a proven record of success. Within the education and healthcare industry, compliance has helped borrowers work out a possible solution with clients while protecting the agency’s reputation and stability.
Fact vs. Fiction: Dispelling Common Myths About Using a Debt Collection Agency
If you’re like many business owners, you’ve encountered at least one customer who doesn’t seem to want to pay for your goods and services after they’ve been purchased. If you’ve been tempted to use a debt collection agency, like AR Resources, to recoup your losses but have been hesitant to do so because of preconceived ideas about how they operate, you’ll be glad to know that many common myths about third-party debt collectors are just that — myths with very little truth to them. Following are five of the most prevalent misunderstandings about debt collection agencies and the actual facts concerning them:
Myth: Debt Collectors Aren’t for Small Businesses
Many small business owners consider collections services to be more appropriate for large corporations that are dealing with multiple delinquent accounts. However, these services are perfectly appropriate for small businesses and can save them substantial sums of money over trying to handle collections themselves.
Myth: Customers May End Up in Jail if They Don’t Pay
Although collection agencies have multiple strategies designed to encourage those with debts to pay them off, having them serve jail time is not one of them. Per federal law, owing money to a business is not a criminal offense in the United States.
Myth: Using Collection Agencies Will Make You Lose Business
Small business owners often worry that they’ll lose customers if word gets out that they use a collection agency. The opposite is probably more accurate — knowing that your company hires professional third-party collection services may deter those with sketchy payment histories from doing business with you. However, it’s essential to choose an ethical collections company, such as AR Resources, that doesn’t employ questionable tactics that can negatively impact your reputation.
Myth: Collection Agencies May Harass People
To expound on the previous point, business owners are often understandably reluctant to partner with collection agencies because they don’t want to be associated with harassment, such as calling people at all hours. Fortunately, the Fair Debt Collection Practices Act (FDCPA) places hard limits on what collections services can and can’t do. For instance, AR Resources can only make collection calls during certain hours and must not call them at their place of employment if specifically told not to.
Myth: Collection Agencies Are Expensive
Collections services only get paid if they’re able to collect on the debt in question. The money AR Resources makes comes from small commissions, which means you’ll receive the majority of the money.
Despite the misconceptions, outsourcing accounts receivable tasks can be an excellent way to preserve your bottom line and uphold your organization’s reputation. For more information about how AR Resources can help you recover your unpaid debt loan with healthcare collections, education collections, and customized collection programs, contact us today!
10 Reasons Why Your Organization Should Be Using a Debt Collection Agency
Businesses often fail because of cash flow issues, and in many cases, it’s due to bad debts from clients. Business owners don’t have ample time to track down debtors and follow them up with calls when bills pile up and remain unpaid. If it’s becoming hard to continuously demand payments, it’s time to hire AR Resources debt collection services. Here are ten reasons why your organization should use our professional debt collection agency: