Being ridden with debts is certainly not a welcoming situation in the life of any individual. Likewise, no company owner too likes to be burdened with debt, which often leads him or her to contact debt collection agencies for extracting the amount due. However, in cases you are about to hire a third-party collection agency in collection the overdue credits or the due invoice payments, you need to make sure that the company you have hired follows decrees if fair debt collection practices or the FDCPA Act.
To ensure that the decrees of fair debt collection practices are followed to the ultimate, you need to refine your credit policy removing the bad debts, which includes no-pays and long term slow pays. Additionally, you also need to be familiar about the types of debt that fall under the purview of the FDCPA rules that include personal, household, family, and personal debts. You also need to understand the application decrees of the FDCPA that makes everybody working in your organization, as debt collectors bound by the regulations of FDCPA.
Furthermore, you must also strive on collecting the bad debts mostly through your own company. You should also keep a firm eye on the debt collection agency hired for your needs. Always avoid asking people not specialized in debt collection to extract payments, as this might leads to unhealthy debt collection practices. To manage your collection practices better, you can also consider forming an in-house department specializing on debt collection. Going by the regulations of FDCPA is most essential to ensure a smooth running of the debt collection practices.