The Pros and Cons of Hiring a Debt Collection Agency

We all expect customers to pay on time, but unfortunately, this is not always the reality. Using a debt collector has some obvious advantages, but It’s wise to consider its potential disadvantages, too.


The moment there is a disagreement or one of the parties does not comply with the agreements, you can take legal action on the basis of the agreement and the general terms and conditions. You do this only at the moment when you yourself cannot come to an agreement with the customer or business partner. You can divide the possible conflicts into two categories: payment conflicts and other conflicts. We will deal with the payment conflicts in this article, the other legal conflicts will be dealt with in other articles.

The Benefits of hiring a Debt Collection Agency

Successful and faster debt recovery
Along with negotiation and persuasion skills, professional debt collection companies like Fair Capital use various techniques that significantly increase the likelihood of collecting a debt.

Remove the hassle and heat from your company
Reaching out to clients to discuss their past-due invoices is not always very comfortable, and no one loves the job of arguing with clients who refuse to pay. When you hire a collection agency, you free yourself from the unpleasant task, giving yourself time to focus on what’s important – your business.

Legal protection
When you hire a collection agency, you mitigate the legal risks involved in collecting debt by yourself. Several federal and state laws govern the collection of past-due receivables. A well-informed debtor will not hesitate to sue if they believe the law has been violated.

Aside from acting as a shield between you and your debtor, a reputable agency, such as will know all the federal and state laws relevant to debt collection.

What is a collection agency not allowed to do?

  • A collection agency (Dutch: incassobureau) may not create official documents, such as a subpoena. Only a bailiff may issue or send a subpoena.
  • Does a collection agency send you a “draft subpoena”? If so, it looks like the collection agency is a bailiff. Or it looks like a bailiff is already involved. But that’s not necessarily true. A draft summons may be intended to convince you to pay. But it is not the same as a subpoena from a bailiff. So don’t be led astray.
  • A collection agency may not proceed with dunning if you protest the bill. The collection process must then be paused.
  • See also the ruling of the Supervisory Board of the Kigid (Complaint Institute for Certified Debt Collection Services).
  • A collection agency may not foreclose.


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