Questions to ask before instructing someone to collect for you

When a customer owes you money and won't pay, handing the debt to someone else to collect feels like a relief—until you realise you have no idea what you're actually handing over. A careless choice can damage your business reputation, breach the Debt Collectors Act, or land you with a collector who vanishes when things get difficult. The right questions, asked upfront and listened to carefully, separate a trustworthy collector from one who'll cause you more headache than the debt itself.

Does your attorney have a debt collection practice, and who will actually handle my account?

This matters because debt collection is not all of legal practice—some attorneys do it rarely, others have built real expertise. Ask directly: "Do you regularly collect debts for businesses like mine?" A firm that does this work will have systems, staff trained in the Debt Collectors Act, and recovery rates they can discuss.

A good answer tells you who owns the account—is it a dedicated collections attorney, or will it be handled by a junior after a brief handover? A vague answer like "our team will look after it" is a red flag. You should know the person's name, their experience, and how you'll communicate with them. Push back if they won't name someone or if the person they name has no collections background.

What's your first move, and when will I hear what's happened?

Collectors vary wildly in their approach. Some write a letter immediately; others try phone contact first; some send a formal demand and give the debtor a chance to respond. What matters is knowing upfront what *your* collector does, so you can choose deliberately rather than panic when nothing happens for three weeks.

Ask: "What's your process from when I hand over the debt?" and "How often will you update me?" A professional will describe a clear sequence—typically a demand letter with a deadline, followed by escalation steps—and will commit to written feedback at set intervals (weekly, fortnightly, monthly). Evasive answers like "we'll see what works" or "we'll call you when we have news" suggest no real system. If they won't commit to updates, you'll be left guessing whether your money is lost or just waiting.

How will you stay within the law, and what happens if the debtor disputes the debt?

The Debt Collectors Act exists to protect debtors from harassment, but it also sets boundaries on who can collect and how. A collector operating outside those rules can expose you to liability. Ask: "Are you registered with PPRA as a debt collector, or are you operating as an attorney?" This is not a casual question—it determines their legal authority and the rules they must follow. An attorney can collect debts as part of their legal practice; a debt collector must be registered.

Then ask: "If the debtor says the debt isn't theirs, or disputes the amount, what happens?" A confident answer acknowledges that disputes exist and describes a pause—gathering evidence, reviewing the debtor's claim, deciding whether to proceed or advise you to resolve it directly. An answer that brushes past disputes is dangerous; it suggests they don't distinguish between a genuine disagreement and a stalling tactic.

What are your fees, and how are they calculated if the debt isn't recovered?

This is where vagueness becomes costly. Fees might be a percentage of the amount recovered, a flat rate, an hourly rate, or a hybrid. If the debt vanishes—either because the debtor has no assets or because collection fails—you need to know upfront whether you're paying anyway.

Ask: "What's the cost structure, and do I pay if you don't recover anything?" A straightforward answer names a model and explains when payment is due. Answers that wiggle—"we'll discuss it once we assess the debt" or "rates are negotiable"—usually mean they haven't thought it through or they operate on gut feel rather than pricing. Get the fee structure in writing before you hand over the debt; doing it afterwards leaves you vulnerable to surprises.

Once you've heard their answers and checked their registration, you'll know whether you're speaking to someone organised and lawful, or someone winging it. The right collector will be crisp, direct, and unflustered by your questions. Finding that person on Strove means access to rated, verified attorneys you can actually vet before you commit your money to collection.