Have been trying to shortlist a Debt Collection Agency by looking at their Google reviews or Yelp rating? According to inc.com – 88 percent of customers read an online review that influenced their buying decision and a single bad review can undo the value of 40 good customer experiences.
Those online review methodologies works well for restaurants and doctors, but the same criteria does not work well for the Debt Collections industry.
- Most negative reviews are left by debtors who hate them anyway. Collection Agency recovered money from them which they were not planning to pay.
- Some disgruntled employees who were unable to adapt the pressure of a Debt Collector job or were unable to recover enough money.
- Few clients who submitted a disputed debt, or the debt which was too old to collect even by a collections agency.
- How may clients who get good returns take the pain to leave a review for a Collections Agency on Google or Yelp? ( just a few may be, that too because their Collection Agency Rep requested them to do so). Dissatisfied customers are more vocal and so are the debtors.
- Many businesses including collection agencies often hire “Reputation management firms” and marketing firms to ensure good online ratings, which has almost nothing to do with the real recovery rates of that collection agency.
We are not saying that there is no way gauge a collection agency, but due to the nature of job they perform, they simply cannot be evaluated by general public reviews.
Many people from the accounts receivable industry crack joke by saying that it is quite possible that a Collection Agency with horrible ratings on Google/Yelp could indeed be the best one (since it recovered so much money , it landed up annoying too many people). We are not recommending you to use this judgement criteria either.
Many agencies which are rated higher on Google, do so by requesting their employees, friends and good customers to leave 5 star reviews and therefore artificially raise their ratings. Unlike sites like Amazon, where we have a “Verified Buyer” tag next to a review, generic online reviews like those on Google/Yelp have no way to know whether the reviewer has even used a service or if the reviewer is a debtor, employee or someone else. Therefore these reviews are subjected to manipulation.
Some agencies simply try to push their ratings higher to take benefits of Search Engine Optimization. However, some agencies are genuinely rated higher, but we are talking very broadly. Better Business Bureau (BBB) ratings are probably more reliable.
The right way to gauge a collection agency is by their recovery rates, product offerings, adherence to the debt collection laws and the experience of their management and staff.
Medical industry uses Collection Agencies a lot, may you have a friend who is a doctor, he can recommend a good collection agency.
Contact us for your debt collection needs.