No Win No Fee Debt Recovery: Worth the Risk?
8th January 2021
When shopping around for a debt recovery service to suit your needs, you may be tempted to be drawn in by “no win, no fee” offers – but don’t be so quick to take these claims at face value.
The businesses who offer “no win, no fee” debt recovery claim that their service is “no risk” since you will not have to pay them if they fail to collect money for you.
However, the real risk in using a “no win, no fee” debt collection service is that you will have wasted valuable time by not using a fully-featured debt recovery service; As with any debt recovery service, you are not guaranteed to recover any of the debt owed to you.
You get what you pay for
Many of the debt collectors not charging an upfront fee often do not have a robust enough approach to recover money from bad debtors when compared to other solutions. Many will only send letters and make the occasional phone call and will be reluctant to include in-person visits to get the job done.
Also, not every company that offers “no win, no fee” arrangements is entirely scrupulous. For example, some have clauses hidden away in their terms and conditions passing liability for costs onto the client under certain conditions of non-collection.
Therefore, it is advisable to do some careful research before engaging with any business offering “no win, no fee” debt recovery.
Always read the reviews
Before going ahead with such debt recovery agencies, we highly recommend reading through reviews of their services on Trustpilot and Google. Here are some things to look out for:
Are there reports of great communication up until the case has been taken on, then silence as soon as the contract is signed? We have sadly heard all too many stories of other agencies going mysteriously quiet on their clients.
The clients of debt collection agencies have already had enough of not being paid on time, so imagine the frustration of their agency doing the same to them. Yet time and time again, the issue of delayed payments from debt recovery cases is a sticking point in online reviews. Incredibly, this happens even when the client knows the debtor has made payments to the debt collection agency.
While “no win, no fee” sounds simple enough, there is always more to such an offer’s terms and conditions, although judging by some reviews this is not always made clear enough to clients before they sign up for the service. Watch out for mentions of this when looking over reviews.
Finally, always ensure any debt collection agency you engage with is accredited, licenced and authorised. You are putting your reputation in their hands and are ultimately responsible for engaging with trustworthy suppliers.
Up-front cost with no hidden fees
At DCBL, we offer a free debt consultation on every case and will only take your case on if we are confident that we can get a result for you. We will then give you an all-inclusive up-front cost based on the size and complexity of your case, which we add to your debtor’s liability should we be successful.
This gives you confidence that you will receive a quality service; We will do everything possible to chase down your debtor and recover your money, from advanced address verification technology to making as many visits to the debtor’s door as is necessary. We don’t cut any corners in our approach.
Plus, you will benefit from our unmatched brand recognition gained through our involvement in the popular Channel 5 & Netflix TV series “Can’t Pay? We’ll Take It Away!”. This means debtors are far more likely to engage early to resolve the debt, removing unnecessary stress for everyone involved.
Use a debt recovery service that works
So, the next time you have a bad debt you need to collect and you are weighing up the “no risk” approach of “no win, no fee” vs DCBL’s transparent approach, it’s worth considering how much you are really risking – The cost of a fee or the cost of the entirety of the debt?
Direct Collection Bailiffs Ltd can boast one of the most effective debt recovery services in the UK because of our professional, ethical and efficient approach. We are rated “excellent” with over 1,700 reviews on Trustpilot.