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Maverick, Attorney
Category: Business Law
Satisfied Customers: 6390
Experience:  20 years of professional experience
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I would like to find an collection agency. Can you show to

Customer Question

Hi I would like to find an collection agency. Can you show to look fo a good one
Submitted: 1 year ago.
Category: Business Law
Expert:  Maverick replied 1 year ago.

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Expert:  Maverick replied 1 year ago.

Here is a list of collection agencies in your area.

1. call and make sure you have the right type of agency for the type of debt you want collected. Some specialize in collecting for or from large companies while others work with small businesses or home-businesses. So, find out what sort of debtors the collection agency most often deals with and what sort of businesses it serves.

2. Make sure the one you want to hire is bonded, licensed, and adheres to the rules of the Fair Debt Collection Practices Act.

3. Good collection agencies use what is known as “skip tracing”, which means that they use and have access to several databases that allow them to locate a debtor who has left no forwarding address.

4. Get proof of insurance from your debt collector in the unlikely event that your debtor takes you both to court. This is most often called “Errors and Omissions Insurance”.

5. Compare payment structures. Some charge a flat fee; Others work on a contingency fee basis. This is the most typical arrangement with fees between 25% and 45% of the total amount collected based on the age of the debt;

6. Most reputable ones are members of the American Collectors Association or the Commercial Law League of America. Both associations require that their members adhere to a code of ethics and are familiar with the Fair Debt Collection Practices Act.

7. Ask about their recovery rate percentage. Ask for references to verify the percentage. Check to see how long it took the agency to collect and if they collected the whole debt or just a part of it.

Expert:  Maverick replied 1 year ago.

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