Debt Collection Agencies - The Commission Based
Deceptive Commission-based Fee Policy of Collection Agencies
The decision to hire an agency for doing debt collection dubai comes along with a lot of responsibility on part of the credit issuer. The lender needs to evaluate the collection agency on some pre-decided domains to attain the desired results. The first principle to avoid any fraudulent collection companies is to have a realistic approach while gauging their vision, and tempting deals. Don’t get swayed away by their flattering yet fruitless procurement promises
They might tend to lure you by offering you mightily and demanding close to nothing. Telling their clients that they will only get a portion of the owed money if they are able to succeed in getting it back from the debtor is a tempting but dangerous deal. It eradicates the motivation to procure the outstanding bills on behalf of the credit-issuing client since it is a question of dependency. Such agencies vow to charge a commission fee only if they’re able to get the desired output. It means no money procured by the debt collectors leads to no commission fee to be paid by the creditor who hires them.
However, the services industry doesn’t work in this principle in reality. Those who deploy human as well as financial resources in the name of service providers require a financial payback for rendering the time, effort and money. Therefore, all such claims regarding no result and no fee are often hoaxes to gain more business via prospective clients.
They might not explicitly declare their service fee but ultimately they shall demand it from you one way, or the other for rendering the lender their professional services. Although, getting back the full debt amount, or even a sizable portion of it is not guaranteed. Hence, It’s a high-risk zone for the lender who remains dubious about the hiring output. Moreover, he might incur double cost in a bid to retrieve his outstanding dues.
The hired agency aiming to do a successful debt collection in dubai on behalf of the credit-issuing client might quash the hopes of settling the bad debt. In this process, the agency doesn’t quit its commission claim. Hence, the creditor not only loses his originally issued money but also pays an additional cost in the name of service cost for the failure of the hired collection agency regarding debt procurement.
