There are an increasing number of Australians defaulting on their credit agreements and who are failing to pay debts they owe.
To tackle this growing debt problem a number of credit management agencies (debt collection and accounts receivable firms) are emerging as key players in Australia.
They provide credit recovery services on a regional, national and in some cases are capable of offering a global service to various financial institutions.
Debt collection can be a difficult environment to work in, in some cases for both the collections staff as well as the debtors who can often be under great emotional and financial strain, and the need for understanding and caring staff, trained to deal in customer relationships is essential.
The recovery of outstanding debt and management of cash flows is however a crucial process to avoid business losses that can lead to the failure of a business.
Equally as important is the ability of an agency to be able to manage the sheer increase in the volumes of cases they are being required to handle, and many have turned to increasing use of technology programs to assist them.
An increasing number of debt collection agencies have opted to develop a debt collection management system suitable to the needs of the Australian market, enabling them to manage all cases.
The system doesn’t actually collect the debt but it assist the collections staff who are charged by the clients with trying to collect the overdue or bad debt amounts, and the system offers automated guidelines for debt collectors, and reports on all aspects of their business to business owners that are essential for good management practices. .
The success of any debt collection Australia firm is dependent upon the way its staff managers the inter reaction with its debtors, and the percentage of recoveries they obtain.
It’s the duty and goal of a debt collection agency to make sure their client’s debts are repaid, and the majority agencies will always operate in any ethical and legal manner to collect their client’s money.
However there are a small number who will use threatening and harassing tactics making threats that are themselves illegal. The ethical ways to collect the debt from debtors are making polite phone calls, raising demand letters, meet the debtor personally and settle the debt amicably without threatening or instigating legal action in the initial process.
These firms have their legal experts and they provide precise legal advice and information in professional staff training to ensure compliance with recovering the debt in a legal and ethical manner.
As mentioned above there are a few agencies who have a genuine global capability and who work on behalf of their financial institution and multi national companies globally and so management reports in a variety of formats are regularly delivered to them on a bimonthly, monthly, quarterly basis as it depends upon the developments in the case. Those technology platforms that are browser based enable an ease of access with the only requirements being internet access, thereby enabling those companies with a regional (number of countries) or global reach, to have access to their accounts management and developments across their global accounts.
Australian debt collectors are governed by individual State and Territory government legislation and are required to meet stringent licensing requirements set down by the relevant authorities, including educational, insurance, probity, and other key compliance issues.
The majority of ethical Australian Debt Collectors are members of one or two industry based associations such as the Institute of Mercantile Agents and / or Australian Debt Buyers & Collection Agents Association, which have strict guidelines on membership applications, and which provide training courses to ensure staff are kept abreast of changing legislation, as well as forums for state and national seminars and conferences.
The trend in the past five years has seen national industry organisations forge working relationships across the globe to the benefit of both the members and their clients, with this trend to continue. Article keywords: