Debt recovery specialists

eCollect support team

Debt recovery specialists, according to different legal definitions, collect or attempt to collect bad debts and default payments from subjects of debt (debtors), using different collection techniques and serving first-party businesses and organisations (also known as creditors). Collection agents’ actions and authorities are legally regulated and in compliance with country laws. Employing debt recovery specialist is not compulsory but can be the best debt collection strategy for a creditor.

Types of debt recovery specialists

Debt collection specialists can be either debt buyers, first-party debt recovery specialists or third-party recovery agents. The first collectors specialise in buying debt portfolios from original creditors and in this manner they become the new creditor of the purchased bad debts. The second type of recovery specialists are part of the creditor’s company, like a subdivision and the third- party agents are represented by the DCAs (debt collection agencies) and they have no part in the contract between the creditor and the debtor. Debt collection agents can also be divided into:

Standard debt collections specialists

They are the subjects working within a debt collection agency. Their role is to contact the debtors and successfully collect the debt amount in order to avoid legal actions. Such agents usually use different methods to contact the debtors, e.g. phone calls, email, letters, etc.; and can also visit the debtor in his property and try to arrange a suitable repayment plan, so that the subject of debt will pay the default amount in full or partly.


A bailiff is a juridical person, who works on behalf of the court. He is authorised to seize part of the debtor’s personal belongings and goods and sell them (usually at auction), in order to settle the debt. Bailiffs are registered in special country registers (e.g. in the UK this is the Certificated Enforcement Agent (Bailiff) register-
). They can perform these actions even without the debtor’s consent but usually, such agents try to use peaceable collecting methods. A bailiff can also prosecute arrest warrants and even repossess debtor’s estate.

There are two types of bailiffs- private court bailiffs and country court bailiffs. The first type is also referred to as enforcement agents (EAs), and typically known as high court enforcement officers. They are collection agents who possess legal rights, which a standard debt collector doesn’t. An enforcement agent can be either private sector-based or can work for a debt collection agency. Country court bailiffs are debt recovery specialists, employed by the Country Courts of the same country they operate in. Both private and country court bailiffs co-operate with debt collection agencies; both can process distress warrants; both can send CCJ (Country Court Judgment) and CCCF (Country Court Claim Form) and other forms of court documents. Such official documents represent the legal attempts at collecting the total debt amount, due to be paid, through a Country Court.

Collection categories of debt recovery specialists

  • Commercial credit recovery, where the creditor and the debtor are both business organisations
  • Consumer debt recovery- between a first party (creditor) and a second party (borrower), also known as “B&C collection”.
  • Investment credit & capital expenditure credit collection- A cash investment is made in order to upgrade and utilise part of the business in a company. It is a subdivision of the commercial debt, where the amount is borrowed to be invested in a business part or technology (it might be a machine, a whole new branch, division, etc.). When the borrower becomes a debtor, the creditor can confiscate the item bought with this investment (if the debt is secured and followed by a collateral) or hire a recovery agency to collect the outstanding debt amount (if the debt is unsecured and there is no collateral involved)
  • International credit collection- provided by DCAs (Debt Collection Agencies) for creditors abroad wishing to collect debts from overseas debtors. Such recovery agencies provide credit collection services on a nationwide level; and others.

Advantages of employing debt recovery specialists

  • Hiring a debt collection agency is a cost-effective solution for collecting debts and creditors can benefit from such relationship; The alluded specialists are an opportunity for creditor’s company to concentrate on other business areas, which leads to increase of productivity;
  • Debt collections specialists can advise and cooperate, also will provide additional help at different stages of debt collection process (from early to late stage collections; from pre-legal to legal debt operations). They can decrease workload and resources used in creditor’s company, and also increase cash flow and maximise debt collection recovery;
  • Performing allotment of problematic accounts- the creditor can either transfer part of the defaulted accounts to debt recovery specialists, or assign all of them to the debt collection agency;
  • Default recovery specialists offer long-term monitoring of the doubtful accounts. Such process assists for early identification of potential bad debts;

There is no absolute guarantee the full amount will be collected and recovered but debt recovery specialists follow classical and modern methods and means of communication in order to contact the debtor, which makes them a more reliable option than dealing with debt collection internally within creditor’s company.

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