Hiring a Collection Agency? Some Do’s and Dont’s

Posted by Marilyn Miller on August 30, 2017  /   Posted in Uncategorized

bad_debt_collectionHiring a collection agency can be a great move to not only bring cash back into your company, but also to free up time you are spending chasing delinquent customers. Your choice of agency should be based on a number of factors. It is important to find an agency that works best for your business. To help with your search, here are some DO’s and DONT’s.

DO make certain your agency has the proper credentials. Check to make sure they are a valid business. If your customers are consumers, make sure the agency has the proper licensing and bond requirements. Some states require consumer collection licenses and surety bonds, while others do not. The Association of Collections and Credit Professionals (ACA International)  is a good place to look for guidance. There are various listings of various state requirements. Collection of commercial i.e., business to business) does not require a specific license, but again, make sure they are a real business in good standing.

DO interview several collection agencies in your area. Inquire about their experience in your field.  Ask them to explain their process and why they believe they would be the best choice for your business.

DO ask for several references and verify them.

DON’T select and agency solely on the basis of the lowest rate. Keep in mind the acronym, “TGTBT”, too good to be true, and what that usually means. Some agencies will sell a low per file fee or low contingency rate for which they will send one letter. If the first letter doesn’t work (which most do not), you will be asked to pay a much higher rate.

DON’T think that just because your collection agency charges you a contingency rate (nothing up front, with a percentage paid only on successful collections), that their services are free. Once you place a file for collection, get out of the way and let the agency do their job)

DON’T ever pay extra fees for research. Research (called “skiptracing” in the collection industry) is a critical part of the process and should be included in your contingency rate.

DO ask your collection agency what types of information they need from you. Also, after hiring a collection agency, pass on to them any new information you discover.

Hiring a collection agency should be done with the same care you would take hiring any vendor. Do it right and the results will follow.


  1. zd porn September 25, 2017 11:55 pm Reply

    759142 162294Thank you for the auspicious writeup. It in reality was a amusement account it. Look complicated to far delivered agreeable from you! Even so, how can we keep in touch? 191335

  2. friv September 26, 2017 1:00 pm Reply

    594098 568770Quite unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your client to communicate. Nice task.. 306654

  3. DMPK October 1, 2017 9:51 pm Reply

    334029 462540I like you blog (dsol, je suis francais, je parle mal anglais) 874775

  4. Wedding event managers in Hyderabad October 9, 2017 7:00 am Reply

    547291 572100 Youre so cool! I dont suppose Ive read anything like this before. So nice to uncover somebody with some original thoughts on this subject. realy thank you for starting this up. this internet site is something that is required on the web, someone with a bit originality. valuable job for bringing something new to the internet! 69529

  5. bandar bola October 24, 2017 1:30 am Reply

    64896 660871Im not that significantly of a internet reader to be honest but your blogs really good, keep it up! Ill go ahead and bookmark your site to come back within the future. All the best 143312

  6. Corporate Event Organizer in Hyderabad November 7, 2017 6:55 pm Reply

    936380 88331Hi! Fantastic post! Please do tell us when I will see a follow up! 379568

  7. ADME Services November 8, 2017 8:17 am Reply

    47192 683921Awesome read , Im going to spend more time researching this topic 226096

Post a Comment

Your email address will not be published. Required fields are marked *


  © COPYRIGHT 2017 United Obligations
^ Back to Top