How Collection Agencies Work When Collecting Default Accounts?

The recovery of debts is a service required by either another company or an individual. It is one of the most common challenges that businesses experience. Recovering debts is time-consuming, especially if the debtor refuses to cooperate.

Due to the shortage of time, they encounter when recovering debts. They may resort to outsourcing the debt recovery process to a recovery agency for small businesses. Debt recovery Dubai agencies are the best in this regard.


They work closely with the credit bureaus when recovering delinquent funds. What they can and cannot do when doing so are regulated by the Fair Debt Collection Practices Act.

  • How Do They Work?

Once you have given the recovery agencies the right to collect default accounts for you. They will likely move forward with the following procedures. The recovery agency you hired will confirm the identity of your client, either by mail or phone.

After verification, the recovery agency sends your client with default payments a written debt validation notice. Your client continues to receive notification of the overdue payment until he settles. If your client agrees to settle the debt, the agency closes the account.

However, if your client does not agree to pay, it often ends in lawsuits.

  • How Much Does It Cost?

The cost of hiring a recovery agency varies according to their policy. They either offer a flat fee collection or work on contingency-based collections. A flat fee collection is a fixed rate that the third-party charges upfront.

The rate is consistent regardless of the size of the account, and the fee is charged per account. A contingency-based collection is the usual payment model that debt recovery Dubai agencies use. If your business hires their services, you will only pay for those successful accounts.

  • How to Find?

There are many debt recovery agencies for small businesses in the market. Some agencies specialize in consumer collection, others in the business collection. While some agencies cater to both consumers and businesses.


Therefore, if you want to hire a debt recovery agency for your small business, keep the above points in mind. Debt recovery Dubai agencies are there for your legal assistance and support. Luckily, they are available all over the UAE.

They are present in Ajman, Sharjah, Fujairah, and Abu Dhabi too. This can save both your time and money. Therefore, it is suggested that you consider them.