If you’re having issues with unpaid debts, you probably don’t have the time or resources to solve the problem yourself.

A debt collector may be the fastest, easiest and most cost efficient way to recover money owed to you and your organisation, whether that be a private business, local council, strata plan, school or insurance claims department.

The firm you select to help recover overdue debts usually depends upon the type of debts you are seeking to recover. 

To help you make an informed decision about choosing your collection agency, here are 5 helpful tips to consider:


  1. Do Your Research

When looking for a debt collector, you should only hire an agency who has experience in your field or industry. 

Many debt collection agencies specialise in certain areas, so you should ask about their work history and the kind of matters they typically accept. This will help you decide which agency has the skills, experience and resources to handle your case. If you are in the business of providing commercial credit, than make sure your agency specialises in this area as distinct from consumer debt recovery. If you trade nationally or even internationally, enquire about the agency’s capabilities to support you interstate and overseas.  


  1. Learn About Their Collection Tactics

There are many rules and regulations that a licenced collection agency must follow. In most states and territories, agencies are required to be licensed, and in certain states, each employee must also carry a license. Debt collectors must adhere to Federal Privacy Legislation and also to the ACCC & ASIC Debt Collection Guideline for Collectors and Creditors which is designed to protect consumers from unethical debt collection practices.

Make sure you hire a debt collector who is fully licensed, and that their collection tactics are compliant with all these rules and regulations because if you hire an agency that uses aggressive or illegal tactics, you may also find yourself in hot water. 


  1. Find Out If They Perform Skip Tracing

If you’ve already started your research, you’ve probably come across the term ‘skip tracing’, but what exactly is it?

Basically, when a debtor decides to skip town, most collection agencies have access to a range of databases that help piece together the information to discover their whereabouts. If you’ve lost contact with your debtor, an agency that is skilled at debtor location may be able to assist you. After all, it’s hard to collect money from a debtor if you can’t locate them!


  1. Compare Prices and Fee Structures

All collection agencies operate their business with different fee structures. In the case of debt recovery, cheapest is not always best, so take the time to discuss your particular needs, ask them to explain the debt recovery process as it relates to your particular circumstances, together the costs associated with each step in the debt recovery process.

Most agencies charge a commission for their services. However, you should only be expected to pay this if they’ve successfully recovered a full or partial amount of the debt. If legal action is required to resolve the matter, this should only be commenced on your instruction, and only after you understand the process, timeframe and costs. 


  1. Enquire About Their Technology and Communication

Most debt collection agencies have online platforms that you can access to keep on top of your files. 

By accessing your account online, clients can directly communicate with their account manager and issues instructions, receive management reports and online statements, and upload documents needed to prove the debt and assist with the recovery process. 

Some collection agencies also have online access for debtors as well as a payment portal. This gives the debtor convenient access to pay or part pay the debt, establish an approved payment arrangement and communicate with the collection agency. 


In the case of AMPAC, demands for payment are now issued via email and SMS which means that debtor contact is instant and trackable. All these features help speed up the recovery process and get your money back to you faster. 

Do you need assistance with collecting an unpaid debt? AMPAC Debt Recovery can help you. Call 1300 426 722 or ask us a question for information about our debt recovery services.