Important factors you need to know before you choose your Collection Agency
- Length of time in business
- Size of the Agency
- Financial stability
- Collection experience (including seniority of Collectors)
- Is Agency automated to include:
- On-line capability
- Training employees continually
- Pre-Collect systems
- Collection procedure for each client/account
- Do they have access to the Credit Bureau?
- What skiptracing procedures do they follow?
- Do they use computer systems with power dialing?
- Are their Collectors continually trained on new laws, etc.?
- Check out rates!
- Fee rates based on type/age and volume?
Notice and Be Aware!
Generally you find rates and fees are charged on a contingency basis – no collections, no charge. However, watch the firm that charges a low fee … They may not work your accounts in a proper manner and will collect fewer accounts. See what you are getting for your money.
Although you may pay a higher rate, the important factor is the Agency’s effectiveness and their net return to you.
The bottom line is: Choose the Agency which will handle your accounts in a professional manner while staying within FDCPA guidelines and sending your monthly reports stamped “Paid in Full”.