Handing my tenant financial debt instantly to some collection agency is not my first preference. Myself, I would personally first report the debt to Experian, Equifax and TransUnion, and let the ding on the debtor’s credit work a couple of months before I gave it to an agency that will charge me a hefty commission.
Collecting tenant debt is much different than collecting other debts, like credit card debt. A collection agency represents you and the business, and you could be come to court should they violate the law. And, just as important as any legal matters, is just how well they are going to collect your debt.
I have worked in the business for 12 years and would like to imagine that many collection agencies work hard, ethically and in the law. But, as in most industries, you will find those agencies which i consider to get renegades. They operate away from law, or right on the edge. Unfortunately, these companies get all the press, thus making all agencies look bad.
The simple fact from the matter would be that the collection industry fills a critical need in the market …