No Win No Fee is a term thrown around a lot, but what does it actually mean? A No Win No Fee agreement or conditional agreement is created between you and your debt collector. It means that should the collector not be able to track down the debtor, you do not have to pay a contingency fee for their service.

A contingency fee is a sum of money, or the percentage that your collector receives as a fee if the case is won and the debt collected. No Win No Fee agreements allow you to track down your debtor with no upfront costs.

Is your debt collector no win no fee offer too good to be true?

If your debt collector offers you a no win no fee service should you take it? We consider the top 3 considerations in choosing a reputable agency to help you recover debts.

1. Testimonials and referrals – A good agency will have lots of satisfied customers. This should shine though on review sites such as Trust Pilot – check ours out here.

2. Transparency of costs – On the basis that your debts are recovered, there will be a fee to pay for the service the debt collector has provided. Your collector should be able to provide you with all the detail of the costs up front. So you know what you are committing to and there are no hidden charges.

3. Do your research – Don’t just follow an advert or go with the first person who contacts you. Check out their business, their website and accreditations. Do they operate Nationally, or internationally? Do they have local offices that can more easily service your requirements? Due your due diligence on them, as they will be representing your brand and business when they start collection of debts on your behalf.

All of these will give you good reason to trust that a debt collectors no win no fee service is a good option for your business.

Should you trust your Debt Collector?

By definition, a debt collector or debt collecting agency is an individual or group of people who track down and recover money owed on delinquent accounts. It can be for any sum of money and when the debt is recovered, the collector/s will typically take a percentage of the money as payment.

Collecting debt can be a tricky job, especially when the individual is purposefully avoiding paying debt back. Either by changing contact information, location, identities etc. Tracking down these individuals can be a lengthy and costly process and some companies find it cheaper and more efficient to hire a debt collector. The collector has the tools and resources needed to track down a debtor.

So how do you know you can trust your debt collectors?

Things all good debt collectors should have

As with many financial difficulties, at Taurus, we understand the added pressure and stress that comes with chasing unpaid debt. We can operate as your personal debt collection agency, and we know there are some key attributes that any decent debt collector or debt collecting agency should offer.

1. Empathy. Understanding the uniqueness of each situation and the emotional weight shows a human aspect that is integral to knowing and trusting that your case is in the right hands. Not only for the client. For the debtor it can be an incredibly difficult situation. There may be other factors affecting the debtors ability to pay on time. Taking a level and empathetic approach is more successful in retrieving debts.

2. Much of the communication between the collector and the debtor take place over the phone. Remaining calm, clear and understanding goes a long way. An agency or agent that can offer multiple language services allows the debtor to be approached in their native language, so all confusion is avoided.

3. Debt collecting can be all consuming. Find an agent who can contact you at appropriate times of the day through a variety of methods if needs be. Many will have technological solutions to help speed up the process of collecting debt.

4. Keeping a close eye on each customer is crucial. Debt collectors will often be contacting several different debtors at once. Being systematic, planning and keeping a record of every example of correspondence with customers is also vital.

5. Finally, good negotiation skills, creative thinking and good problem-solving abilities are all key. These elements are important to look out for in any good debt collector or debt collecting agency.