Drug testing

Collection Agencies: What Do They Do?

Collection agencies are businesses that collect past-due bills and accounts receivable for other persons or businesses in exchange for a fee. Collection agencies charge for their services one of three ways:

1) A flat fee.

2) A percentage of what is collected.

3) Through a direct sale of the delinquent accounts.

If you are trying to collect a small or medium sized debt, using collection agencies that charge a flat fee are probably your best option - collection agencies that charge a flat fee work just as hard to collect a small debt as they do to collect a large debt.

If you have just a few large unpaid receivables, working with collection agencies that charge a percent of the total debt collected is a wise choice. (usually 25 to 50 percent).

The third option, selling your uncollected receivables at a discount to certain collection agencies is advisable only if you have a very large amount of debt - usually $1 million or more. The selling price is typically a minuscule 2 to 8 cents on the dollar.

Most collection agencies use one of three tactics to collect debt:

1) Letters.

2) Direct contact via the telephone.

3) Litigation.

Typically, collection agencies begin the collection process by sending a series of notification letters, often called demand letters. The final notification letter generally warns the debt dodger that if the past-due account is not paid by a certain date, his or her name or company will passed on to more intensive collections.

Many collection agencies also pay their staff to phone the debtor directly. This direct contact is most useful in turning up the heat on debtors who have identified themselves as having no intention to pay their bill.

Litigation - in small claims court or a full-scale courtroom - is a final option.

Besides sending out letters and making phone calls, some collection agencies also specialize in locating debtors who can no longer be reached at the address or phone number listed on their accounts. To determine whether certain collection agencies offer this service, ask them about their "skip tracing" abilities.

Collection Agency Outsourcing - Outsourcing accounts receivable to a professional collection agency has become a popular alternative to attempting to collect receivables in-house.

limousine chicago service
In The News:

Searching For A Low Interest Credit Card?

These days, people need to very carefully consider what type... Read More

7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit

There are seven consumer credit laws you should be aware... Read More

10 Ways of Reducing the Risk of Identity Theft

1- Check your credit report regularly2- Secure personal information in... Read More

Credit Cards - A Blessing or a Curse?

Owning a credit card can be quite an advantage. Whether... Read More

The Hazards Of Your First Credit Card

You probably don't need me to tell you credit cards... Read More

Student Credit Cards

STUDENT CREDIT CARDS With graduate debt averaging... Read More

Different Ways to Borrow Money

There are many different ways to borrow money. Outlined below... Read More

How To Get Out Of Credit Card Debt

If you're like the average person, let me warn you... Read More

Types of Credit Cards

There are a whole variety of different types of credit... Read More

Building Good Business Credit After Bad Credit

Can you establish good business credit if you have bad... Read More

7 Ways To Squash Identity Theft

It is the scourge of our age: identity theft. Thieves... Read More

Five Reasons to Repair Your Credit Score - You Can Do It Yourself

There are multiple reasons that tell us why we should... Read More

What To Look For In A Credit Card

When you are deciding what type of credit card to... Read More

Credit Traps Snag Consumers

Nearly 20 years ago I worked for a small consumer... Read More

How To Repair Your Credit Report

A credit report is run on a buyer when he... Read More

Credit Reports Inside and Out

The Credit Report is like your scorecard in the lending... Read More

Like It Or Not, You Have A Score To Settle!

Like It Or Not, You Have A Score To Settle!... Read More

A Summary of the Fair Credit Reporting Act

This summary of the Fair Credit Reporting Act will explain... Read More

The Easy Way To Gain Access To Your Free Online Credit Report

When you apply for credit, those lending you the money... Read More

Are you paying higher interest on your credit cards than you think?

Many credit card holders sign up for a credit account... Read More

The Truth About Credit

What you might not know about credit.Some people don't know... Read More

How You Can Help Prevent Identity Theft

How can I prevent Identity theft from happening to me?... Read More

Credit Card Benefits and Drawbacks

Credit cards have both benefits and drawbacks. It is wise... Read More

Credit Scoring: What You Dont Know Can Hurt You

You've probably heard the term credit scoring. You may have... Read More

Useful Tips On Avoiding Credit and Charge Card Fraud

Credit and charge card fraud costs cardholders and issuers hundreds... Read More

led garage lighting dimmable led bulbs Pete's produce ..