Debt collection agencies are private companies that are contracted by businesses to collect their accounts which are in arrears. There are different agencies that specialize in collecting different types of debts.
Debt Collection Agencies collect debts on behalf of another person or organization. They are authorized by the UK Financial Conduct Authority to do so. These agencies are regulated under the Consumer Credit Act 1974, which includes a list of the debt collection practices that these agencies are not allowed to use.
These agencies in the UK are the most common way for people to get their money back when they can’t get it from the person they owe, but there are different types of debt collection agencies that all work slightly differently. It is important to understand these different types of debt collectors before you make a decision on which one to use, as some companies may be more aggressive than others.
Debt collection agencies in the UK play an important role in helping businesses recover money that is owed to them. But which types of agencies are there? How do they work? This guide explains the different types of debt collection agencies in the UK, so you can decide which one might be best for your business.
Common Types of Debt Collection Agencies in the UK
If you are dealing with debt collection agencies in the UK, it is important to know what they do and how they work. Debt collection agencies play an important role in the process of recovering debts for individuals and businesses. A debt collection agency can be accredited by the CCA, which will give you some protection as a consumer. There are a few kinds of debt collection agencies in the UK.
Types of debt recovery agencies in the UK are:
- Personal Debt Recovery Agents – usually known as PRAs
- Commercial Debt Collection Agencies
- Insolvency Agents
- Credit Reference Agencies
Personal Debt Recovery Agents (Pras)
Personal debt recovery agents (PRAs) are debt collectors who specialize in personal debt collection. These are expert collectors in the recovery of debt owed to private individuals. These agencies usually work on a no-win, no-fee basis.
Commercial Debt Collection Agencies
Commercial debt collection agencies are debt collectors who specialize in the recovery of debt that relates to commercial transactions. These agencies work on contingency basis, meaning they only get paid when you win.
Insolvency agents are debt collectors who specialize in the recovery of debt owed to insolvent businesses. These agencies usually work on a no-win, no-fee basis.
Credit Reference Agencies
Credit reference agencies gather information about an individual’s credit history. They do not usually recover debt but do provide information to credit grantors.
All debt collection agencies in the UK are subject to a code of practice issued by the Financial Conduct Authority (FCA). The code of practice applies to all debt collection agencies, including those that work on behalf of lenders and creditors. By law, debt collection agencies must follow the code as part of their terms and conditions. The FCA’s Code of Practice for Debt Collection sets out rules that debt collection agencies must follow when collecting debts from consumers.
Best Debt Collectors in the UK
Federal Management is one of the most prominent and trustworthy UK commercial debt collection agencies in the country. It has been helping businesses and individuals get back their debts for over 15 years now. Their reputation speaks for itself. This agency is the best debt collection agency in london.
Federal Management has a team of experts working hard to recover your money and help you resolve your financial problems with creditors. If you want to get the most out of your investment and get 100% guaranteed results, then Federal Management is the right choice for you.
Frontline Collections, a leading debt recovery agency based in the UK, has been named as one of the UK’s top 15 debt collection agencies. As well as its credit control and debt recovery work, Frontline Collections offers a range of other services including skip hire and disposal, skip cash collection services, and cash for scrap cars.
Frontline Collections is specialize in personal debt collection. They have assisted thousands of businesses in the collection of their outstanding accounts receivable. Their success is based on proven methodology.