Debt Collection Agencies versus Lawyers

Debt collectors get paid when they collect money for the client and only when they collect. They will usually work hard in negotiating with the debtor and attempt to reach a settlement before resorting to any legal action. Agencies work fast and phone at odd hours and will try anything legal to collect the outstanding amount. A substantial amount of attention will be spent on whether it is possible to collect the debt and in certain cases determine whether the debtor has any available assets, if necessary. 

Debt collection agencies have a broader range of tactics they use to collect debts. Where required they are usually have expertise to find the missing debtor.  If a lawyer is appointed first, you will need to pay for the legal service, as well as paying a commission to the debt collection agency hired to finish the job. Agencies can be extremely effective against ‘professional debtors’ and tracing missing persons.  They have a keen interest in collecting the debt and in all processes related to it.

Lawyers, on the other hand, get paid as they go for each step of the legal process regardless of whether it produces payment or not. This is a paid service irrespective of the results. Lawyers get stuck right into the legal process with minimal negotiations, if any, and may work fast, but for some reason rarely give that impression. The only pressure on the debtor is to have the matter pursued in the courts and their efforts might appear sluggish. Little or no attempt will be made to establish whether the debtor has any other assets to settle the debt.  Often all the processes will be explained using jargon, or not explained at all, and they are not effective against ‘professional debtors’ as locating debtors is not their business. You can trace a skipped debtor using a debt collection agency.  

Many organizations would opt for a debt collection service initially depending on how unemotional or selective you want this process to be.  Lawyers used to be used as a "shock tactic" when they are asked to send the debtor a letter of demand. The idea would be to startle the debtor into paying.  This works, but today the best debt collection agencies retain solicitors and send solicitors letters of demand themselves, achieving the same result often for no extra charge.