Debt Collections Blog | NSB

How to Evaluate Collections Agencies

Written by NSB Staff | Aug 6, 2024 12:00:00 PM

Whether your company is facing an increase in overdue accounts, struggling with inefficient internal collections processes, or simply looking to optimize receivables management, partnering with a reliable collections agency can make a significant difference. Here's a comprehensive guide to help you evaluate collections agencies effectively.

 

Why You Can’t Trust Online Reviews

 

Online reviews can be a useful tool for evaluating businesses, but when it comes to collections agencies, they can often be misleading. Here’s why you should be cautious about relying solely on these reviews:

 

  • Bias in Negative Reviews: Many negative reviews are left by debtors who are unhappy about owing money. These reviews often reflect personal grievances rather than the agency's actual performance, giving a skewed perception of the agency's effectiveness.

  • Underrepresentation of Positive Experiences: Companies rarely leave positive reviews for their collections partners because they prefer not to advertise their outsourcing activities. This leads to a lack of balanced feedback, making it harder to get a true sense of the agency’s capabilities.

  • Understanding the Source of Reviews: It's crucial to identify whether the reviewer is a debtor or a business client. Reviews from debtors are often emotionally charged and less objective, while business client feedback, though rare, tends to be more reflective of the agency’s actual performance.

  • Evaluating the Context: Consider the context in which the reviews were written. Negative experiences might be isolated incidents rather than a reflection of the agency’s overall service quality. Look for patterns and recurring themes to get a clearer picture.

 

While online reviews can offer some insights, they should not be the sole basis for evaluating collections agencies. Understanding the limitations of these reviews and seeking additional information through direct feedback and references will help you make a more informed decision.

 

Importance of Finding a Trusted Partner

 

Finding a trusted collections partner requires careful evaluation of their compliance processes. A thorough, documented compliance process indicates high expertise and professionalism, ensuring the vendor will represent you professionally and legally.

The sales process also provides valuable insights into the vendor's suitability. If it is cumbersome or if the vendor does not understand your needs, they may not be the right fit. An efficient sales process reflects their operational efficiency and customer service commitment.

For a long-term solution, find a partner that listens to your needs, understands your business, and is poised to grow with you. They should customize their approach to fit your unique requirements and offer proactive communication. A well-aligned partner will work diligently to recover debts while maintaining positive relationships with your clients, contributing to your financial health and growth.

 

Things to Look for When Evaluating Options

 

When evaluating potential collections partners, consider the following factors:

 

  • Industry Experience: Ensure the agency has experience within your industry.

  • Business Tenure: Check how long they’ve been in business.

  • Licensing and Bonding: Verify that they are licensed and bonded in all applicable states.

  • Employee Insights: Investigate what their employees say about the vendor.

  • Industry Associations: Look for affiliations and active participation in industry associations.

  • Legal Support: Assess their ability to support legal needs.

  • References: Request references and look for nationally recognized brand-name clients.

  • Awards and Recognition: Check for any awards or recognition for employee satisfaction.

 

 

Certifications to look for

 

Compliance and Process Certifications

 

SOC 2 Certification: Ensure the agency has SOC 2 certification. This certification demonstrates that the agency follows strict standards for data security, privacy, and operational processes. It provides assurance that your sensitive information will be handled securely and that the agency’s processes meet high standards of integrity and confidentiality.

 

Training Standards

 

ACA International Certification: Confirm that the agency’s collectors are trained and certified to ACA International standards. ACA International sets the benchmark for ethical practices and professional conduct in the collections industry. Collectors who are ACA-certified have undergone rigorous training to ensure they handle collections processes effectively and ethically.

 

Why Choose NSB

 

NSB stands out as a top choice for collections due to several key attributes. Established in 1986, NSB has built a long-standing reputation for reliability and excellence in the industry. NSB's commitment to high standards is further demonstrated by their SOC 2 certification, ensuring robust security and compliance practices. Their collectors are certified by ACA International, guaranteeing adherence to industry standards and best practices.

NSB offers the best of both worlds: they are large enough to be well-known and respected in the industry, yet small enough to provide customized services tailored to meet your unique needs. Their active participation in industry associations such as ACA International, CCAoA (Commercial Collection Agencies of America), and CLLA (Commercial Law League of America) underscores their dedication to staying current with industry trends and standards.

Choosing the right collection agency is a strategic decision that can significantly impact your business. By thoroughly evaluating potential partners and considering these factors, you can find a trusted agency like NSB to meet your needs and support your growth.