Unpaid bills of customers create a significant financial burden on telecommunication companies. The Telecom sector is highly competitive, and without a proper accounts receivable strategy, past-due accounts can severely impact their cash flow. Too many overdue accounts receivable restricts the ability of a telecom provider to expand their business, install new towers, and provide quality service to existing customers. It can restrict their ability to upgrade systems or to adapt a newer technology to stay competitive.
The billing department of the telecom companies is always under a lot of pressure because the existing customers are always unhappy about the mandatory charges/taxes that are levied on the base price of a plan by law. Surcharges and taxes vary with every state and even districts. A plan costing $49.99 per month will cost about $10-$15 more after taxes and surcharges. Moreover, if a customer uses services that exceed their monthly plan, it results in significant overcharges. Many customers dispute these extra charges and often refuse to pay. Consumer Financial Protection Bureau recently conducted a survey and found that over one-third of telecom customers were behind payments due to billing disagreements or personal financial issues.
Hiring a debt collection agency will relieve your accounting staff from the headaches of collecting money from past-due accounts. A good telecom collection agency is able to serve both national and regional telecom providers. They are able to communicate in both English and Spanish.
Benefits of hiring a Telecom Debt Collection Agency:
1. Agencies always do an advance skip tracing to locate the debtor and engage with him professionally and diplomatically. They are well versed in handling common problems in debt collection and debtor excuses.
2. Run checks if the debtor has filed for bankruptcy or if he has deceased. If so, recommend that the case should be closed without wasting any more resources.
3. Report the debt to a Credit Bureau, if the cell phone operator wants.
4. Collect the debt by following the FDCPA laws prescribed by the federal government and do a preemptive scrub for “litigious” customers, thereby greatly reducing the number of lawsuits that a telecom provider may get dragged into.
5. Involvement of a Collection Agency conveys a very strong message to the customer, and they are more likely to settle, versus when the in-house employees of a telecom provider were trying to collect money under their own company’s name.
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Getting better collection rates from your agency:
1. Transfer the accounts early and automatically to your collection agency. Older an account gets, harder it gets to settle.
2. During the collection process customers often ask for the contractual agreement (soft/hard copy), copy of bills and late fees. Those should be provided quickly because the mobile phone customer has the right to validate the debt.
3. Sign a Settled-In-Full agreement with your collection agency, which authorizes them to settle the case for slightly less money in some cases.
If you need a telecom collections agency to recover money from unpaid bills: Contact us
Check this: Cost of hiring a collection agency