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Efficient Office Systems and Field Work combine for Effective Debt Collection

There are plenty of collection agencies around New Zealand. As a general rule, the bigger agencies tend to fall into the 'letters and phone calls only' trap. They focus on having the most efficient systems for dealing with large volumes of debt using primarily letters, phone calls. Some of these agencies have great systems and will be effective in some areas but will not succeed with the kind of debtors who simiply ignore letters and phone calls and either lack the organisation or the will to follow through on commitments made over the phone.

Some smaller agencies fall into the opposite trap of focussing on field work and the 'old school' door knocking approach only without having a well organised and efficient office system to back up their activities. They will not be able to efficiently collect smaller debts which will respond to letters and phone calls. When choosing a debt collection agency, clients need to feel confident that the agency has proper systems to handle their information and the cash that gets collected.

I believe the ideal in the New Zealand environment is an agency with a robust software system and good back up systems; an efficient team of office based staff with good phone skills; plus, a flexible and responsive field agent presence.

At Total Debt Solutions we estimate that upwards of 20% more debt is collected due to field work follow-up after letter and phone call contact, than by using just letters and phone calls alone.

When choosing an agency, we reccommend finding out (among other things) if the agency does its own field work as well as having a good computer system.