Another weird twist hits the business world as companies are being left stranded, scrambling to find a solution to a new, unexpected problem: their collection agency’s performance goes down and then shuts its doors. —
As the global pandemic continues to wreak havoc in the corporate world, transforming the way business is conducted, companies depend on their collection agency to do their dirty work of chasing down everyone who doesn’t pay for their products and services.
One may imagine this to be a lucrative industry, one that may even thrive in hard economic times.
Much to the contrary, collection agencies are shutting their doors and leaving their clients hanging at an alarming rate.
After years of breaking laws, deceptive accounting practices, and all-around operating with the moral compass of a tyrant, collection agencies are simply closing up shop.
In the golden era of collections, many of them thrived by undercutting their competitors with insanely low rates just to win new business only to do the unthinkable: collect money and not even pay their own clients.
Although this is totally illegal, it is common practice in the dirty world of collections, and now it’s catching up to them.
Fast forward to today, collection agencies are struggling to stay afloat because many have no real track record of operating ethically. With crackdowns by the FDCPA and other regulatory bodies, they are being forced to do things the right way. This is something they are unaccustomed to and frankly, many are not able to pivot quickly enough to remain profitable and stay in business.
This is a massive blow for businesses nationwide which couldn’t have come at a worse time.
Default rates, unpaid invoices and customers simply not paying their bills has become the new normal, with no end in sight.
At the exact time companies need someone to collect the money they are owed, their collection agency’s performance is either going down or they simply go out of business.
This shocking trend has, however, opened the door for new models to emerge that finally give businesses peace of mind and somewhere to turn as clients who don’t pay, continue to escalate.
One such company, Diplomatic AI, is taking advantage of this unsexy trend of companies scrambling to find a new way to collect what they’re owed.
“It’s insane. The level of abuse that these businesses suffered through with their collection agency is so cringey, it’s shocking. Many times, our new clients have us not only collect new unpaid accounts, but also all the accounts their collection agency claimed weren't collectible, and we even go after the collection agency themselves who oftentimes we find, were hiding money from their own clients,” says Jason James, Founder of Diplomatic AI.
To add insult to injury, once a collection agency shuts its doors, most of the time nothing can be done. The clients they robbed cannot get the money they should have received. There’s simply no recourse, and, as such, the trend is projected to continue to grow.
“One of the biggest surprises we hear regularly now is how grateful people are to have found somewhere to turn to that’s transparent, ethical, and actually gets the job done,” says James “because they are so used to being mistreated that it’s almost like they are escaping from an abusive relationship and they don’t even realize it, until they make the switch.”
For more information about an alternative to get paid, visit www.DontPlayJustPay.com
Source URL: https://www.diplomatic.ai/
Release ID: 89063548