The Process of Debt Recovery

Debt Collection Agencies comprise agents that are aptly trained in collecting the owed amounts from the debtors on behalf of the crediting companies or institutions. They are hired by corporate clients to employ their professional skills to aid in successful Debt Recovery.  

The process of Debt Recovery Dubai begins with the formal relaying of information by the creditor company to the hired agency regarding the defaulting debtors. A creditor company is the one that originally issued the debt amount to the debtor. When the debt receiving party fails to honour their financial liabilities after various reminders by the creditor, then professional collection agencies are called to play their part. 

The second step in debt recovery is the processing of the information provided by the client along with the necessary data collected by the collection agents themselves. This ground research helps them to formulate better tactics to persuade the debtor to honour their commitments or face legal consequences. 

These agents are skilled enough to put the right amount of persuasive pressure and select the best suitable strategy on the defaulter party to attain their goal of the bad collection on behalf of their client. 

When the recovery attempts are fruitful, these agencies hand over the collected amount to the original crediting company after deducting a percentage of their fee from the amount recovered. The collecting agents need to make the debt recovery attempts a success since they work on a contingency-based fee policy. It means, no recovery, no fee. If the hiring company does not get the intended results of the procurement of unpaid amounts, then the hired agencies shall also get nothing out of the whole process.

Vice versa, the more the amount they can get back via collecting agents from the opposing party, the greater the percentage of the fee they become eligible to receive. Hence, this contingency fee plan acts as a trigger to motivate debt recovery agencies to work harder and give it their best shot to recover the bad debt within a short time. It helps them get a high fee percentage while cementing their position as a credible agency for debt recovery.

Apart from that let us tell you Debt Collection Dubai is not only working on Contingency. We also believe that No Win No Fee is not the solution. When a service provider is working on a solution then he has to bear a cost to start the recovery process. If a reasonable payment is paid to the Debt Collection Service provider then it will boost his passion and energy as all the risk will be at a safe end from the start.