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Prejudices, scams and facts - how to choose a debt collection partner in 2021
Sebastian S.
30/11/2020

Prejudices, scams and facts: how to choose a debt collection partner in 2021

Choosing a new debt collection provider is a challenge for many, where do you start? Who to choose? Debt collection lawyer or debt collection company? Who solves the most cases? Which supplier fits best with our values, strategy and objectives? Do we want our cases to be created easily and quickly through integration with our own systems?

The questions are many, and for most people the debt collection industry is difficult, confusing and still full of prejudices, scams and facts. In Denmark there are more than 104 authorized debt collection companiesand a number of lawyers specializing in debt collection. But where do you start, and which prejudices and facts should you listen to? Is it true, for example, that lawyers are always the most efficient and that debt collection companies are just machines without service and professionalism?

Here at Collectia, we have compiled a number of good advice on what we believe you as a company should consider when choosing a new debt collection partner.

Debt collection lawyer or debt collection agency?

In Denmark, there are more than 104 authorized debt collection companies with police approval to help you collect your money. On the other hand, there are all Danish lawyers who can help you collect your money without prior approval from the police - however, you should be aware that not all lawyers offer debt collection. So which should you choose: the debt collection lawyer or the debt collection company?

"Many lawyers are from time to time busy painting a picture of debt collection companies as "factories" where customer service, personal dialog, professional advice and service are non-existent. However, the reality in 2020 is completely different. Here at Collectia, we have 140 men and women who every single day are in close dialog with our clients and customers - but also develop strong IT solutions that improve the clients' and customers' experience of the entire process - from the creation of cases to self-service solutions. Our clients consist of some of the country's largest companies, and you don't get that trust by being a "factory" . The trust is achieved through close dialog, high professional knowledge and a partnership supported by strong IT solutions and competent employees" says Jesper Winther, Sales Manager at Collectia.

However, debt collection lawyers may be preferable if, for example, you have a complicated case within, for example, civil engineering and construction, where there are disputes and similar matters, and where the payment itself is blocked by legal challenges. We also recommend that all private individuals with a financial dispute with another private individual contact a lawyer.


Advantages of a debt collection agency:

  • Always have no cure no pay
  • It is often easy to get started online
  • Most have an online portal where you can follow your cases
  • Are strong in debt collection - as debt collection companies often do not make a living from anything other than debt collection
  • Are often strong in IT, making it easy for you as a business to create and track your cases - perhaps directly from your accounting software
  • Often uses new technology for recovery (MobilPay, e-Boks, etc.)

Advantages of the debt collection lawyer:

  • Often good at cases where there are objections
  • Often good at cases with high legal challenges and complexities
  • The lawyer can also help you with other legal matters (company formation, etc.)

Technology and debt collection

For most businesses, technology is essential to function - and the same should be true when working with your debt collection partner. For most businesses today, the ability to quickly create and track debt collection cases is essential - and many prefer to do this through integrations to their own solutions or via online access.

Therefore, make sure that your debt collection partner has existing solutions for your accounting software - or through an API can help you get started quickly. If you don't want your systems to talk to your debt collection partner, make sure that the online access provided is easy, intuitive and clear to use.

But also when it comes to debt collection, we believe that it is crucial to have a digitally oriented debt collection provider that is strong in IT and can constantly develop and adapt to the platforms, technologies and payment flows that customers and businesses use.

The way customers interact and communicate with each other is constantly changing - so you should choose a debt collection service provider that continuously adapts to the way you and your customers interact.

Here at Collectia, we use technologies such as MobilePay, e-Boks and many other online solutions to meet the debtor on the platforms they use on a daily basis. This provides benefits for all parties. 

"We bring home somewhere between 10 and 15% more money using card payments alone, so this highlights how important it really is that we constantly keep up with our customers' demands - including technological ones" says Jesper Winther

Effective debt collection through professional dialog and technology

At Collectia, we believe that the recipe for successful, professional and efficient debt collection takes place in close personal dialog with both debtor and creditor in interaction with the latest technological solutions on the market. Because technology has revolutionized the way we all work - including debt collection.

But technology can never stand alone in a successful collaboration. Because behind every unpaid claim there are people, and if it is not a simple oversight, there are always personal circumstances and situations that must be considered and respected. Therefore, personal dialog, advice and guidance on how the debtor can best get out of his financial dispute will continue for many years to come to be an essential part of the best possible resolution of a financial dispute between two parties.

Collectia has more than 140 people who every day are in close dialog with debtors around the world, on exactly the platform they want; chat, phone, letter, online platform or email. In doing so, we use exactly the technology that you and your debtors are on - for the benefit of you, your debtors and us.

See references

The Danish debt collection industry consists of many skilled players, both among lawyers and debt collection companies.

Our experience is that among the 5 largest debt collection companies and debt collection lawyers, each is good at their own field - typically within banking, insurance, telecommunications and communication. Our recommendation is that you are in close dialog with your future debt collection partner about your particular type of claim - because far from all industries should be handled in the same way.


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