Investigating Debt
You or your company has loaned a substantial sum to a person and now he is neither paying the interest or is showing any interest in returning the principal. Each time you contact him, he replies that he is in a very bad financial condition and may not be able to pay back your dues. In such circumstances, you need the help of a debt collection agency. Both companies and individuals hire such specialists to recover their dues. Chances are that your debtor has the financial resources available, but is not interested in paying you your legitimate financial dues. For your information, debtors are scared or intimidated by debt collection agencies, since they have no knowledge of the powers assigned to such agencies. Remember, there are important questions that you should ask the agency you are hiring before assigning the task to them. You should ask them whether they guarantee collection of your debts. The majority of agencies will state that they will not ask for any commission if they are unable to collect the debt. Do not be fooled by such statements. The reality is that you will have to pay them money upfront for pursuing your debt. It implies that you are fleeced in two ways. You do not get the money due to you, but also have to pay the agency for their inability to recover your money.
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Other questions
Ask the agency if they charge a commission on collection from the first day. Stay at arm's length from such an agency, as this clause slaughters your chances of getting back all the money that is rightfully yours. Agencies that charge commission from day one can skin you anywhere from 25% to 40% of your rightful dues. It is a huge sum to pay to recover your money. Instead of going for the percentage option, opt for a debt collection agency that charges you a fixed amount. In such a scenario, you know how much money you have to pay once the agency has recovered your debts. Most such agencies will ask for an upfront payment and demand the remainder when they have recovered your money.
Is your debtor bankrupt?
Your debtor might state that he is unable to pay you your dues, as he is bankrupt. However, how can you find out whether he is telling the truth? In such circumstances, you need the help of a private investigation agency. Their agents will keep a track of your debtor, checking his financial transactions too. Obviously, a bankrupt person will not go about purchasing the latest electronic gadgets or costly jewellery. A private investigator is a type of detective that utilises different investigation methods when helping their clients. The best specialists in this field are known for being highly discreet. They will tail your debtor and collect information about him. Unfortunately, they do not have the rights to access details of the bank account of your debtor. However, they use latest eavesdropping gadgets including phone-tapping equipment to capture the discussions of your debtor with other persons. They also use cameras to record the movements of your debtor. As mentioned previously, nobody will purchase luxury goods if they have no money. They will also provide you with details that the debt collection agency can use to help recover your money.