Lockhart, Morris & Montgomery, Inc.

May 12, 2023

6 Myths About Debt Collection Agencies

debt collection agency myths

When you are a business that provides services to the public or private sector, customer debt is an issue you’re bound to face. From medical debt to student loan debt, the team at Lockhart, Morris & Montgomery has seen it all and has helped brands of all sizes settle debt collection issues to bring their finances back in order.

As a debt collection agency, we know there are plenty of stigmas surrounding debt and working with an agency to collect. However, we’re here to help dispel some of these big rumors and help you get ahold of your rightful money.

Here’s a look at 6 common myths about working with a debt collection agency.

Debt Collectors Only Care About Making Money

We are a professional debt collection company. Our experienced agents will connect with your clients on a personal level, understand their financial situation and work out the best possible plan for timely repayment.

Working With a Debt Collector is Expensive for Business

As we mentioned in the last myth, many debt collection agencies work on a contingency basis. So, if you work with a company that follows this type of plan, you won’t have to worry about paying a fee until they recover for you. Even then, you should clearly understand what you’ll owe, and reputable collection agencies will keep their rates fairly reasonable.

You Can Only Collect on Old Debts

LMM is an experienced agency specializing in starting early out collections that prevent overdue accounts from becoming defaulted accounts.

By letting us track down debts early, we can ensure that collecting from your clients is handled quickly and efficiently. This helps create peace of mind for your customers and improves your total cash flow as you get your money back.

There are plenty of potential rewards when turning over new debts to a collection agency. So, let LMM be your guide for early-out collections.

Small Debts Don’t Go to Collections

It is a common misconception that debt collection companies are only used for old, large debts. In reality, debt collectors can be used to collect debts of any size and age.

By working with an experienced debt collector, businesses can benefit from the resources available, which allow them to pursue collections more professionally than traditional methods such as letters or phone calls.

Debt Collection is Only for the Big Businesses

Contrary to popular belief, debt collection is for more than just large corporations. Even smaller companies can benefit from the resources available through agencies and pursue collections more efficiently.

You’ll Hurt Your Reputation

Many managers believe that when they hire a collection team to help resolve defaulted accounts they’ll stir up a bad reputation for the company.

Using professional collectors sends out a positive message to potential customers that you take payment seriously and will not tolerate any late payments or defaults on accounts. This sends out a strong signal of reliability which is essential for building and maintaining customer loyalty.

Work With the Best in Debt Collection With Lockhart, Morris & Montgomery

If you have clients who need to settle their past-due accounts, don’t waste your time trying to cold call and track them down on your own. Trust the experts of Lockhart, Morris & Montgomery to help you get your money back with the compassion and professionalism we are known for.

Let our agents debunk these myths for you in real time. Contact us today to schedule your consultation.