5 Challenges in Recovering Old Debts (and How Our Vic Collect Can Help)

Recovering old debts can be a real challenge but it is important to keep trying because your business relies on these funds to stay operational and to keep growing. While attempting to get debtors to pay up, you will encounter all sorts of challenges. Here is a quick look at some of the most challenging issues you will face while trying to get your debtors to pay up. 

Staying Up To Date With Regulatory Changes

Debt collectors and creditors need to follow specific regulations while recovering debts. Your company can get into serious trouble if the correct procedures and practices are not used. While it is already a challenge to stay within legal limitations, you should also take note that the regulations are constantly changing or amended. It is important to always stay up to date on all of the latest changes so you won’t ever step out of place.

Meeting Consumer Protection Standards

Consumers (your debtors), have plenty of rights that protect them as businesses, individuals and which also protect their reputation. It is very important to meet the protection standards so you won’t violate any legal rights while trying to recover your debts. This can be a very difficult process, especially when you are dealing with debtors who are extremely reluctant to pay. Any mistakes on the creditor’s side could result in legal action. Debt collectors need to understand consumer rights so they can operate without overstepping these rights. 

Ensuring Data Security

Data security is crucial when it comes to financial matters. While handling sensitive information of the debtors, creditors need to ensure that no sensitive information is leaked out. This includes protecting sensitive information from cyber-attacks. It is very important to operate within secure networks so all parties can stay safe from fraud, identity theft, and account hacking.

Unresponsiveness 

Debtors can be very reluctant to pay up, especially if they are experiencing financial difficulties. Unresponsiveness is a very common challenge that you will face while trying to recover your debts. Your debtors might ignore phone calls or emails, they might avoid contact, and they might refuse to pay up. In these cases, it is important to know what processes to follow so you can inspire your debtors to pay up without threatening them or overstepping their protective rights. You will need to use very specific strategies to get the client to acknowledge the due debts, respond to you, and start paying up.

Disputes over Legality or Debt Amounts

While trying to recover your debts, you might encounter all sorts of disputes. The debtor might question or dispute the owed amount. There could be disputes regarding the services provided or the terms of the agreement. Debtors might also claim that the debt has already been paid. It can be very difficult to do a thorough account history check to establish the exact due amounts. Communicating with a disputing debtor can also be very time-consuming and stressful. 

The debt collector will need lots of patience while communicating with debtors and will need to thoroughly investigate the matter in order to avoid unpleasant mistakes or false accusations. 

Overcome Debt Recovery Challenges with Professional Help

Collecting agencies can be a huge help to your company because they will take all of these challenges upon themselves. Vic Collect is a leading debt collection agency in Victoria that you can trust to maintain a professional front on your behalf while recovering the money you are owed. With our help, the chances of receiving payment from your debtors is a lot higher and your company reputation will never be at risk.