FAQs About Debt Collection Services
Many companies have misconceptions about hiring a debt collection agency, believing that outsourcing their debt management could harm their reputation or public image. With Southwest Recovery Services handling your back and front office BPO, you can count on poised and professional debt collection services.
To help you understand third-party debt collection agencies like Southwest Recovery, here are some answers to frequently asked questions, including how debt collectors work and our transparent and ethical debt collection services.
What Is a Debt Collector?
A debt collector is a professional company hired to collect money owed to your business. If you have customers or clients who have not paid, debt collectors remind individuals of their outstanding debt and work with them to negotiate a payment arrangement. At Southwest Recovery, our seasoned collection staff possesses the expertise to recover the money owed to your business while treating your customers with the respect they deserve.
How Does Collections Work?
As an accredited third-party collection agency, Southwest Recovery Services receives unpaid or slow-paying accounts from your business and then works to recover debt. We do not own any debt outright. This makes our collection services a partnership — we only take action with your approval.
Our hands-on approach includes a careful review of every account. We run these through a gauntlet of third-party processes to get the most up-to-date information about your consumers. We also provide active follow-up procedures, handling all communication so your internal team does not have to.
Any disputes or refusals to pay will be sent back to you, allowing you to decide whether we pursue further action. Actionable steps could include our free credit reporting service, where we report the debt to the credit reporting agency appropriate for the debt type.
How Do You Maintain Positive Customer Relationships?
At Southwest Recovery Services, your reputation is as important to us as it is to you. While we work tirelessly to recover the outstanding debt, we also understand the importance of preserving a good relationship with your customers.
We operate ethically and professionally in every interaction, treating consumers with dignity and respect. This helps ensure financial misunderstandings do not result in lost customers or damage to your public image. We never resort to harassment, deception or unfair treatment to recover owed funds.
Are There Laws Governing Debt Collection Services?
Yes — many state and federal laws and regulations govern ethical debt collection services. Southwest Recovery Services abides by all of these to protect your customers from harassing or abusive collection efforts. These regulations include:
- Fair Debt Collection Practices Act (FDCPA)
- Health Insurance Portability and Accountability Act (HIPPA)
- Fair Credit Reporting Act (FCRA)
- Consumer Financial Protection Bureau (CFPB)
- Federal bankruptcy laws
- Other legislations that govern how and when we can contact consumers
Is It Possible to Collect Old Debts?
Federal and state laws dictate time limits on certain types of debt. Southwest Recovery is well versed in these statutes of limitations standards and can guide you in collecting old debts.
How Much Do Debt Collection Services Cost?
Southwest Recovery Services works on a contingency basis. We only receive payment if you do. Once payment is received from an overdue account, we subtract our retention percentage, and the rest goes to you.
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