International debt collection is a very broad service sector with literally hundreds of small collection agencies worldwide. They offer their debt recovery services to any company, by any chance, from anywhere, having any bad debts in any other country. In a nutshell, the total sector is currently very diffused and suffering from shady practices, lacking direction and harmonization, and misses a certain level of control.
The expected profit margin of these small firms is often based upon a certain statistical success factor, ignoring those rather complicated files cases demanding some further attention. Clients are not rarely left behind in disarray and desperation on what further steps to take. This obviously gives the sector a bad name and does negatively reflect upon those well organized collection businesses. Those are structurally putting a lot of effort in properly treating their collection files. They respect the faith their clients put in them by being allowed to act on their behalf, and therefore do their utmost reaching the most optimal result. This all for the sole reason that they are actually aware that the collections sector at large abides by mutual trust and proper communication.
From the outset of a collection procedure, most collections agencies send their demand letters only by email in the hope a debtor responds after which they can start negotiating. If that will not happen there are often no further tools to raise the pressure. A call can then perhaps establish contact with a debtor, but will mostly end in secretaries apologizing for a financial manager or director being in a meeting. In the event a direct contact person is reached, they can easily brush off an agent due to language difficulties or misunderstandings.
MDI international debt collection is based on a total different model in which we first of all escalate our debt files to our partner offices in the country of the debtor. This has a great advantage as our local collection agents do speak and understand the language of the debtor. Secondly, they are accustomed to local cultures and can timely anticipate on certain practices. Also, the fact that a local agent finds itself in the vicinity of a debtor will ensure that a debtor company takes official payment orders, demand letters, or collections calls seriously. All communication e.g. e-mails, faxes, postal letters are always issued in the language of the debtor.
However, the most important aspect as to why we stand out is the constant monitoring role assumed by its Head Office. The MDI leadership constantly tries to make sure that all our local offices adhere to our principles and procedural guidelines. This entails for example the daily checking of case progress, and warning our partners in time when cases seem to get overdue. The head office does moreover oversee the effectiveness and attempts to correct and improve its partners where needed.
Needless to say, and mentioned earlier, this is all facilitated by our next-level Case Management System, without which all above could never have been realized.
- What is International Debt Collection