Debt collection

[Anonymous]

Good evening everyone,

This is my first post so go easy.

Can someome provide me with a quick overview as to the steps involved in setting up a debt collection agency and the likely returns. For instance do you need to register with the FSA?

Thanks

Jon

[clairemackaness]

You need to speak to nicthechick as this is her area of expertise.

[Anonymous]

I thought you might say that!

[clairemackaness]

we encourage healthy competition on UKBF, just look at the amount of webdesigners we have.

Besides if your in different areas, what harm can it do to pick her brain. Nics full of good ideas and I'm pretty sure she'd help you.

Correct me if I'm wrong Nic, but please not with the kosh!

[bwglaw]

For a start you will need to have a good understanding of the law so that you can at least distinguish the issues that are in dispute and be able to settle the matter for the client.

Experience is everything and is the key to success. Getting it wrong can cost you dearly.

You will also need a licence from the Office of Fair Trading.

I have dealt with a 'debt collection agency' which was claiming to be bona-fide but just wanted to make a quick buck. They specialised in 'internet debts' i.e. non-payment for web development work. Their lack of experience cost them dearly because I filed an official report and within 24 hours they were put out of business and their website closed down. This is because of the tactics they employed and they were operating without a licence.

They claimed they were exempt from the Consumer Credit Act because they were based in Belfast, when the domain name pointed to Manchester. They also claimed they deal in commercial debt and are exempted, but they were still shut down.

Hope the above is not off-putting but just to give you a taste of my experience when you will be dealing with people who lack skills in diplomacy and tact.

[Anonymous]

Thank handson.

Having worked for a major bank in their arrears department, I do understand the need to be careful with your approach when speaking to debtors. I also understand debts can be in dispute, however even these accounts can be 'collected' on whilst the matter is unresolved.

I will be familiaring myself with the consumer credit act over the next couple of days and looking into the trading license.

I think the above busnines with compliment a property business I own very nicely.

[Ian J]

The Credit Services Association has a useful website here (http://www.csa-uk.com) which includes a factsheet on how to set up as an agency here (http://www.csa-uk.com/Factsheets/02_Starting_Agency.pdf) which will tell you much of what you need to know.

[Anonymous]

Thanks Ian

[Admiral Collections]

Hi Jack

I would certainly agree with the section in the CSA document that you can under estimate how long it takes to build up a client base. Clients have to gain your trust and I know there are plenty of debt collection companies out there but you really need to be unique. You need to network, network, network and network again.

I wish you all the luck in the world, unless of course you step on my patch! :lol:

Nic :wink:

[Anonymous]

Thanks Nic,

Hopefully there will be room for the two of us! I have a potential client base already in place. Is there any particular area you specialise in?