When To Consider A Collection Agency Instead Of Small Claims Court In Australia?

While this is a possible scenario, it may not actually be the best option. If you want a fast and efficient recovery you should consider contacting a debt collector instead of pursuing legal action.

Reasons to Hire a debt collections company Instead of Taking a Customer to Small Claims Court:

1. Taking a client to court can take months:

Most companies do not consider how long a court case can take. The company must first file the case and the individual must be summonsed. Once summonsed the consumer is given time to find a lawyer who can push back the date of the case.

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2. A case in small claims court can go horribly wrong:

Once sued, an individual may decide to counter-sue, which will further complicate the situation. The defendant may even accuse the company or individual of committing perjury, in order to collect payment for a debt that a consumer claims not to owe.

3. Hiring a debt collector is a hassle-free alternative:

 When hiring a debt collector, you can just sit back and let the agency do its job. They will not need to worry about contacting the client or retrieving missed payments. The collector will do all of the work, while you can continue to do your business as usual.

4. A debt collector is a professional trained in recovering debt.

Even if a company takes a client to a small claims court, they will not necessarily receive payment for a delinquent bill. If a customer hires a good lawyer, the lawyer will ask that the company provide documentation and proof of the debt.