Uncategorized

Successfully recovering unpaid accounts starts with assigning them properly. Here’s a simple yet comprehensive guide to ensure you maximize your debt recovery, maintain compliance, and protect customer relationships.

---

Step 1: Choose the Right Collection Agency

Not all collection agencies are the same. Evaluate potential agencies based on these critical factors:

• Industry Specialization: Does the agency have experience in your sector (medical, dental, commercial, education)? Industry-specific expertise boosts recovery rates significantly.
• Compliance Record: Confirm the agency follows FDCPA, HIPAA, TCPA, and state regulations to prevent costly legal issues.
• Reputation & Reviews: Look for agencies with high ratings (4.5 stars or higher) and solid customer testimonials.
• Pricing Structure: Understand if the agency operates on a fixed-fee model (ideal for newer accounts) or contingency (better for older, harder-to-collect accounts).

---

Step 2: Categorize Your Accounts

Divide your delinquent accounts clearly:

• Early-stage Accounts (30–90 days overdue):
  • Ideal for low-cost, fixed-fee collection services.
  • Typically recovered through polite demand letters and calls, preserving customer relationships.
• Late-stage Accounts (90+ days overdue):
  • Best handled via contingency-based services.
  • Requires advanced skip tracing, negotiation, and possibly credit reporting or legal actions.

---

Step 3: Prepare Your Documentation

Ensure each account assigned is accompanied by complete documentation, including:

• Debtor’s full name, address, phone number, and email.
• Detailed invoices or billing statements.
• Contracts or terms of service.
• Records of prior collection attempts (calls, letters).

Accurate and comprehensive documentation increases collection success by up to 35%.

---

Step 4: Submit Your Accounts

Once documentation is ready, submission methods typically include:

• Secure Online Portals: Fastest and safest way, usually with built-in encryption and compliance checks.
• Batch Upload: Suitable for businesses assigning multiple accounts at once, saving administrative time.
• Email or Fax (Less Recommended): Traditional methods; always ensure sensitive data protection and encryption.

Agencies commonly provide secure portals, which streamline assignments and reduce errors.

---

Step 5: Monitor Collection Progress

Top agencies offer robust client portals, allowing real-time updates. Expect visibility into:

• Status updates (active, settled, or legal escalation).
• Payment history and breakdown.
• Notes from collectors detailing interactions with debtors.

Regularly reviewing progress helps you manage cash flow and ensures transparency.

---

Step 6: Handling Payments & Remittance

Clearly define how payments will be handled:

• Direct Payments: Payments from debtors may come directly to you, requiring you to report promptly to the agency.
• Agency Payments: Payments collected by the agency are typically remitted to you after deducting agreed-upon fees.

Clear processes prevent misunderstandings and ensure accurate accounting.

---

Step 7: Escalating Unresolved Accounts

If an account remains unpaid after initial collection attempts:

• Discuss escalation strategies, such as credit reporting or legal action.
• Confirm any additional costs or procedures with your agency.

Timely escalation significantly increases recovery chances on difficult accounts.

---

Benefits of Properly Assigning Accounts

Properly assigning accounts to professional collection agencies yields measurable results:

• Increased Recovery Rates: Up to 40% improvement compared to internal efforts.
• Lower Costs: Outsourced collection reduces administrative expenses by 20–40%.
• Better Compliance: Reduces risks of legal penalties and lawsuits.

---

Final Thoughts

Efficiently assigning your accounts to a collection agency is a strategic business move. It ensures improved cash flow, regulatory compliance, and customer relationships—all critical to sustained growth and profitability.

Ready to assign your overdue accounts? Connect now to match with the best collection agency suited for your business needs.

Below is a snapshot of the largest U S-based (or U S-operating) collection firms in the two very different segments of the industry. “Biggest” is measured by latest-available 2024 full-year top-line revenue, or—when the company is private and doesn’t publish audited accounts—by widely-cited analyst/market-data estimates. All numbers are in US dollars unless noted.

---

1 | Consumer (B2C) Debt-Collection Specialists

Rank	Agency (headquarters)	2024 revenue	Scale / focus	Why they dominate
1	Transworld Systems Inc. (TSI) – Lake Forest, IL	≈ $5 billion (LeadIQ estimate, 10 000 employees) (LeadIQ)	Healthcare RCM, student-loan & consumer receivables	Grew through a string of acquisitions (ACT, Alltran, EOS Canada) and a tech-first model for first- and third-party servicing.
2	Encore Capital Group (Midland Credit Management) – San Diego, CA	$1.31 billion TTM revenue 2024 (Companies Market Cap)	Debt-purchasing/collection in US & 8 other countries	Largest publicly-listed debt buyer; invests heavily in analytics to price and collect charged-off credit-card portfolios.
3	PRA Group Inc. – Norfolk, VA	$1.11 billion 2024 revenue (+39 % YoY) (Companies Market Cap)	Global debt purchaser/collector	Strong US and European platforms; Q4 2024 cash collections +31 %. (PR Newswire)
4	GC Services – Houston, TX	$1.4 – 1.7 billion (Growjo range, ≈ 5 800 employees) (Growjo)	First- & third-party collections, customer-care BPO	One of the largest privately-held ARM/BPO players since 1957.
5	Radius Global Solutions – Edina, MN/Philadelphia, PA	≈ $549 million (Growjo)	Healthcare, financial-services & utility collections	4 000+ staff, omnichannel / AI-driven “RIVA” virtual agent.

Quick takeaway: The consumer side is dominated by very large, often publicly traded debt buyers (Encore, PRA) and BPO hybrids (TSI, GC Services) that can fund bulk portfolio purchases or run massive first-party campaigns at scale.

---

2 | Commercial (B2B) Collection Specialists

Rank	Agency (U S operating hub)	2024 revenue*	Primary services	Notes
1	Allianz Trade Collections (formerly Euler Hermes) – Owings Mills, MD	≈ $2.8 billion group revenue 2023/24 (Zippia)	B2B collections arm of the world’s largest trade-credit insurer	Combines debt collection, credit insurance and bonding in 50+ countries; US team handles North-American claims.
2	Atradius Collections – Baltimore, MD	€2.5 billion (~ $2.7 B) group revenue 2024 (Atradius)	Global commercial collections + credit-insurance recovery	Integrated with Atradius credit-insurance; multilingual in-house collectors cover 96 % of world GDP.
3	Altus Receivables Management – New Orleans, LA	≈ $63 million (Growjo)	Third-party & 1st-party B2B, global legal escalation	Branded “ARM Strong™” Salesforce platform; CLLA-, IACC-, CCA-certified.
4	Caine & Weiner – Sherman Oaks, CA	≈ $88 million  (Growjo)	Commercial & hybrid consumer collections; 100-yr-old firm	National network plus Mexico, UK, Hong Kong affiliates.
5	ABC-Amega – Buffalo, NY	≈ $15 – 20 million (LeadIQ / Growjo range) (Growjo)	Third-party B2B collections, credit-group management	One of only a handful of agencies triple-certified by CLLA, IACC and CCA of A.

*Group revenue shown for Allianz Trade and Atradius because their US collection arms are not separately reported; both run sizeable dedicated US teams.

Quick takeaway: Commercial collections are far more fragmented. Global credit-insurance giants (Allianz Trade/Euler Hermes, Atradius) dwarf US-only players, but midsize specialists such as Altus, Caine & Weiner and ABC-Amega compete on industry focus, certification and bespoke legal networks.

---

How to use this list

1. Match specialization to your ledger.
   If you’re chasing mostly consumer balances (medical, retail, fintech lending) the top five consumer firms above have the scale, skip-tracing data and compliance infrastructure you’ll need.
   If your A/R is business-to-business—especially export or multinational—look first to Allianz Trade or Atradius for one-stop credit-insurance + collection, or to Altus/ABC-Amega for pure contingency services.
2. Check certification & compliance:
   For commercial work, CLLA/IACC/CCA-certified agencies undergo trust-account audits and bonding requirements.
   For consumer work, ensure the agency is licensed in every state you bill, follows Reg F (CFPB) rules, and is SOC 2 / ISO 27001 compliant.
3. Demand performance data. Even the “biggest” varies widely in liquidation rates by debt age/industry. Ask for:
   • recovery percentages for portfolios similar to yours,
   • average days-to-collect,
   • complaint ratios,
   • indemnification coverage.
4. Negotiate fee tiers. Large agencies will flex on contingency rates or fixed-fee “pre-collect” pricing if the volume is meaningful.

---

Methodology & caveats

• Public-company figures come from SEC filings or press releases dated Feb 2025; private-company figures rely on market-intelligence aggregators (LeadIQ, Growjo) and may be ±10-15 %.
• Some consumer giants (e.g., Alorica, Afni, Convergent) also top $500 M in ARM revenue, but they blend collections with customer-care outsourcing and were excluded to keep the tables focused on pure‐play or majority-collection companies.
• Several former heavyweights (e.g., D&B RMS, NCO Group) have exited or been absorbed and no longer appear as stand-alone entities.

Use this as a directional guide and always request up-to-date audited numbers and client references before contracting.

Understanding Time-Barred Debts: Statute of Limitations Explained

When you owe money, creditors typically have a certain period to legally pursue repayment. This legal timeframe is known as the statute of limitations. Once this period expires, the debt becomes “time-barred,” meaning creditors or collection agencies can no longer sue you to recover the debt. However, it doesn’t mean your debt completely disappears.

What Exactly is a Time-Barred Debt?

A time-barred debt is one that has surpassed the statute of limitations, preventing creditors from legally enforcing repayment through the courts. This time limit varies widely by state and debt type, generally ranging between 3 to 6 years. Once expired, creditors can still attempt collections through phone calls or letters, but you’re not obligated by law to pay.

Can Time-Barred Debt Affect Your Credit?

Yes, absolutely. Even if the statute of limitations has expired, unpaid debts may stay on your credit report for up to seven years from the date of your first missed payment. This can significantly lower your credit score, making it harder to obtain loans, credit cards, or favorable interest rates.

Statute of Limitations by State (Common Debt Types)

State	Written Contracts	Oral Agreements	Promissory Notes	Open-Ended (Credit Cards)
Alabama	6 years	6 years	6 years	3 years
California	4 years	2 years	4 years	4 years
Florida	5 years	4 years	5 years	4 years
Illinois	10 years	5 years	10 years	5 years
Indiana	10 years	6 years	10 years	6 years
New York	6 years	6 years	6 years	6 years
Ohio	8 years	6 years	6 years	6 years
Texas	4 years	4 years	4 years	4 years
Washington	6 years	3 years	6 years	3 years

(*Note: Verify with local laws or consult an attorney, as laws occasionally change.)

How Debt Becomes “Revived”

If you make a payment—even a partial one—or acknowledge the debt verbally or in writing, you risk “reviving” the debt. This resets the statute of limitations, making the debt legally collectible again. For example, paying just $20 toward a $3,000 time-barred credit card debt can restart the clock, potentially exposing you to lawsuits again.

What Should You Do if Contacted About a Time-Barred Debt?

1. Avoid Admitting Debt: Never confirm the debt is yours without legal consultation.
2. Request Verification: Ask for documentation proving the debt and the date of your last payment.
3. Know Your Rights: Debt collectors are legally prohibited from suing or threatening to sue you on time-barred debts.

Paying a Time-Barred Debt: Should You?

Consider carefully before deciding:

• No Legal Obligation: You’re not legally required to pay once the statute expires.
• Credit Score Impact: Paying won’t remove the debt immediately from your credit report unless you negotiate a “pay-for-delete” agreement.
• Negotiate Wisely: If choosing to pay, settle for less and request the agreement in writing. For example, offering to settle a $2,000 debt for $800 could save you money and stress.

Real-Life Example:

Sarah from Texas was contacted about an old credit card debt of $5,000. The debt was 5 years old—beyond Texas’ 4-year statute for credit card debt. She confirmed the debt verbally, unintentionally restarting the statute of limitations. Now, Sarah can potentially face legal action, something avoidable had she understood her rights better.

Final Thoughts

Understanding the statute of limitations can protect your financial well-being and prevent unnecessary stress or costly mistakes. When dealing with old debts, always seek professional advice from financial counselors or attorneys to make informed decisions.

In today’s work-from-home environment, it has become more common for companies to provide laptops and other equipment to their employees. While this arrangement helps ensure smooth workflow and productivity, it can become problematic when employees quit or are laid off but fail to return their company-issued devices.

Despite repeated reminders and attempts to recover the equipment, some ex-employees may become unreachable or simply refuse to cooperate. In such situations, hiring a professional collection agency can be an effective strategy for recovering your property—or the associated costs—while protecting your organization’s reputation and legal interests.

Below is an overview of the risks employers face when attempting to handle returns independently, and how professional collection agencies can help.

---

The Risks of Handling Recoveries on Your Own

1. Reputational Damage
   When you directly demand the return of equipment or payment from a former employee, there is a risk of tarnishing your own image. The ex-employee, already disgruntled, may misinterpret your outreach or even claim harassment if they perceive your efforts as overly aggressive.
2. Legal Complexities
   State and federal regulations govern debt collection practices. An employer that attempts to recover equipment or costs without a clear understanding of these laws may inadvertently break them. This can lead to countersuits, especially if the ex-employee is searching for grounds to take legal action against your organization.
3. Limited Resources
   Tracing a former employee who has gone off the radar can be a time-consuming process. Most HR or administrative teams don’t have the specialized tools or time to locate someone who is actively avoiding contact, especially if they’ve moved states or changed phone numbers.

---

Why Hire a Professional Collection Agency

1. Expertise and Legal Compliance
   Collection agencies follow strict federal and state regulations, ensuring that every attempt to recover property or costs is conducted ethically and lawfully. By engaging professionals, you reduce your risk of violating debt-collection or privacy laws.
2. Preservation of Reputation
   Because a neutral third party is handling the recovery efforts, any negative interaction or confrontation is distanced from your organization. The collection agency’s role shields your reputation from the potential fallout of direct conflict with a former employee.
3. Emphasis on Professional Consequences
   Former employees often respond more seriously to a collection agency. They understand that persistence, credit bureau reporting, and possibly legal measures could follow if they fail to comply. This sense of urgency can accelerate the return of the company’s assets or the repayment of their costs.
4. Advanced Recovery Techniques
   Collection agencies employ specialized tools and techniques such as skip tracing—used to locate individuals who have moved without leaving a forwarding address—and litigation scrubs, which identify potential legal risks. By uncovering the ex-employee’s history and current whereabouts, a collection agency can tailor the recovery strategy while advising you on possible legal pitfalls.

---

The Process of Recovering Costs via a Collection Agency

Let’s consider a practical example: Suppose the cost of the laptop (or other equipment) is $1,000. As an employer, you can place this amount for collection with a professional agency. From there, the collection agency proceeds as follows:

1. Initial Contact and Negotiation
   The agency will attempt to contact the ex-employee and request either the immediate return of the equipment or the payment of the $1,000. They will use every legal channel available—phone calls, emails, letters—while adhering to all relevant regulations.
2. Follow-Up and Persistent Efforts
   If initial efforts are ignored, the agency intensifies its efforts. This can include skip tracing if the ex-employee has become unreachable. Depending on state laws and the agency’s agreement with your company, they may also report the delinquency to credit bureaus or send formal notices of potential legal action.
3. Resolution or Escalation
   The collection agency aims for a swift resolution. Once the ex-employee either returns the equipment directly to you or pays the $1,000, the agency retains its fee (based on the agreed-upon rate) and remits the remainder to you. If, however, the ex-employee still refuses to comply, the agency may recommend legal action, which could involve taking the case to court.

---

Best Practices for Employers

1. Clear Equipment Policies
   Establish clear guidelines and agreements regarding company-issued equipment from the outset. Make sure employees acknowledge these policies in writing. This not only helps in recovery but also strengthens your position if legal action is necessary.
2. Prompt Documentation
   Once you decide to terminate or accept an employee’s resignation, create a paper trail. Document each request for equipment return, including the dates and methods of communication. Detailed records bolster your case and help the collection agency in their efforts.
3. Consultation with Legal Counsel
   If you are worried that an ex-employee may sue, particularly in cases where they have a history of litigation, consult with legal counsel before taking any collection steps. A well-informed approach can prevent costly lawsuits and reputational damage.
4. Choose a Reputable Collection Agency
   Not all collection agencies are created equal. Research agencies that specialize in equipment recovery or have a track record with corporate clients. Look for firms that emphasize compliance, transparency, and professionalism in their collection processes.

---

Conclusion

When an ex-employee refuses to return company-issued equipment or reimburse its cost, it can be both a logistical headache and a financial loss. Rather than risk damaging your own reputation or getting mired in legal difficulties, hiring a professional collection agency offers an efficient, compliant, and effective path to recovery. By leveraging their expertise in skip tracing, negotiation, and litigation, a reputable agency maximizes your chances of reclaiming either the device or its value—while ensuring that you remain on solid legal ground.

In today’s ever-evolving work culture, it’s more important than ever to have clear policies, documented processes, and a reliable partner who can navigate the complexities of recovering corporate assets. With these measures in place, your organization can protect its resources, maintain its professional standing, and stay focused on driving business growth.

Unpaid debts can create significant challenges for businesses and medical practices in California. Outstanding accounts not only disrupt your cash flow but also consume valuable time and resources better spent on growing your enterprise. CA-USA ( Collection Agency USA) is here to help.

As a leading debt collection agency in California, we specialize in recovering both business and medical debts efficiently and ethically.

Why Choose CA-USA for Debt Collection Services?

Expertise in Business and Medical Debt Recovery

At CA-USA, we offer specialized services in business debt collection and medical debt collection. Whether you’re a small business owner grappling with unpaid invoices or a healthcare provider facing delinquent patient accounts, our experienced team is equipped to recover your debts promptly.

In-Depth Knowledge of California Debt Collection Laws

Navigating the complexities of California’s debt collection regulations requires expertise. Our team is well-versed in laws like the Rosenthal Fair Debt Collection Practices Act and the California Consumer Privacy Act (CCPA). We ensure all our collection efforts are fully compliant, protecting your business from legal pitfalls and preserving your reputation.

Compassionate Approach to Medical Debt Collection

For medical professionals, maintaining patient relationships is paramount. We approach medical debt collection with sensitivity and respect, balancing the need for recovery with the importance of patient care. Our goal is to recover outstanding balances without compromising the trust you’ve built with your patients.

Customized Debt Recovery Strategies

We recognize that each client has unique needs. That’s why we develop personalized debt recovery plans tailored to your specific situation and objectives. Whether you have a few overdue accounts or require a comprehensive collection strategy, we’re committed to delivering solutions that align with your goals.

Benefits of Partnering with CA-USA

Improved Cash Flow

Recovering unpaid debts is crucial for sustaining a healthy cash flow. Our effective collection methods increase the likelihood of timely recoveries, allowing you to reinvest in your business or practice without financial constraints.

Time and Resource Efficiency

Managing debt collection internally can be a drain on your staff’s time and your company’s resources. By entrusting CA-USA with your debt recovery needs, you free up your team to focus on core business activities while we handle the intricacies of the collection process.

Legal Protection

Our adherence to California’s strict debt collection laws minimizes your exposure to legal risks. We conduct all collection activities ethically and legally, safeguarding your business from potential lawsuits or regulatory penalties.

Cost-Effective Solutions

We offer flexible pricing models, including contingency-based fees. This means you only pay when we successfully recover your debts, making our services a cost-effective choice for your business.

Our Proven Debt Collection Process

1. Detailed Account Evaluation: We start by thoroughly assessing your delinquent accounts to understand each debtor’s situation.
2. Professional Communication: Our trained agents reach out to debtors using effective communication techniques that encourage repayment while maintaining professionalism.
3. Legal Escalation When Necessary: If initial efforts don’t yield results, we can escalate the matter through legal channels, always in compliance with state and federal laws.
4. Transparent Reporting: We keep you informed with regular updates and detailed reports, so you’re always aware of the progress we’re making.

Serving Diverse Industries Across California

CA-USA proudly serves a wide array of industries, including:

• Healthcare Providers: Hospitals, clinics, dental practices, and more.
• Small and Medium-Sized Businesses: Retailers, manufacturers, service providers, and contractors.
• Educational Institutions: Schools, colleges, universities, and training centers.
• Professional Services: Law firms, accounting firms, marketing agencies, and consultants.

Trusted by California Businesses and Medical Practices

Our commitment to ethical practices, legal compliance, and exceptional customer service has made CA-USA a trusted partner for debt recovery in California. We take pride in helping our clients reclaim their financial stability while upholding the highest standards of professionalism.

Take Action Today

Don’t let unpaid debts hinder your success any longer. CA-USA – Collection Agency USA is ready to assist you in recovering what’s rightfully yours. Reach out to us for a free consultation and discover how our customized debt collection services can make a difference for your business or medical practice.

If you’re dissatisfied with your current collection agency due to issues like low recovery rates, excessive fees, or poor customer service, it may be time to consider making a switch. Changing your collection agency can seem daunting, but with the right approach, you can smoothly transition to a new partner who better meets your needs. This article will walk you through the steps of changing your collection agency and provide tips on selecting a new one that aligns with your business objectives.

Note: Most collection agencies will agree to close your accounts if you provide them with one month’s notice. They will only retain accounts where debtors have committed to making payments or are already paying in installments. In most cases, the transition is smooth unless your current agency is highly uncooperative.

Additionally, be very careful before hiring a new collection agency, they may look great on the surface but may turn out to be worse than your existing agency.

Need assistance? Contact us

Reasons to Consider Changing Your Collection Agency

Several factors might prompt you to reevaluate your relationship with your current collection agency:

• Low Recovery Rates: If the agency isn’t recovering debts effectively, it directly impacts your bottom line.
• Complaints from your Debtors: Harsh tactics and unprofessional behavior can tarnish your company’s reputation.
• Lack of Transparency: Without clear reporting and communication, it’s difficult to assess the agency’s performance.
• Excessive Charges: Hidden fees and high contingency rates can erode the value you receive.
• Poor Customer Service: Inadequate support can lead to frustration and inefficiency.
• Compliance Issues: Non-compliance with laws like the Fair Debt Collection Practices Act (FDCPA), HIPAA or lacking licenses in certain states can expose you to legal risks.

Steps to Terminate Your Current Collection Agency

Ending your relationship with your current agency requires careful planning to ensure a smooth transition:

1. Review Your Contract: Check the terms of your agreement to understand the notice period and any termination clauses. Typically, a one-month notice is standard.
2. Serve Notice: Provide written notice to the agency, clearly stating your intent to terminate the contract.
3. Identify Accounts to Retain or Release:
   • Retained Accounts: Accounts with active payment plans or verbal commitments from debtors may remain with the old agency until resolved.
   • Released Accounts: All other accounts can be transferred to your new agency.
   • Credit Reported Accounts: If any of your accounts have been credit reported, they should either remain with the old agency or have their credit report entry cleared. If a debtor later disputes the entry and their claim is valid, do you think the old agency will be willing to address the issue after you’ve parted ways?
4. Obtain Documentation: Request a comprehensive list of all accounts being released and ensure they are marked as closed in the agency’s portal.
5. Maintain Access: If any accounts are still active, ensure your login credentials remain active until all matters are settled.
6. Secure Your Data: Ask for sufficient time to download all relevant documents and information before access is revoked.

Sample letter to your collection agency October 10, 2024 RE: ABC Company (and all our locations – ABC Company 1, ABC Company 2 and ABC Company 3) To Whom it May Concern, This letter is to inform you that we have decided to cancel our service with your collection agency (PQRS Collection Agency). We are asking that all of our accounts placed in the last 5 years be closed and returned to us as soon as possible. We intend to assign these accounts to a different collection agency in about 30 days. We understand that accounts with an active payment plan in place may remain with PQRS Collection Agency. All others should be cancelled immediately. In case any of the accounts that are being withdrawn have been credit reported by you, kindly withdraw those entries from the debtor’s credit report. Please send either a “.csv” or “excel” list of accounts including the Our Location Name, Reference#, Debtor Name, Signer name (if different from debtor name), Address, City, State, Zip, Phone#, DOB, Placement Date, Last Contact Date, Current Status, Original Balance due and Balance still due. If any accounts have concerning status or are disputed (ex: notice from debtor’s attorney, threatening to sue) or bankrupt, or deceased, etc, kindly indicate in the Current Status column or in an appropriate “Notes” column. If you are closing all our accounts, kindly allow us 30 days to download our data ( including backup documents we have provided to you). In case you are holding back a few accounts with active payment plan, do not deactivate our access till those remain with you. Seeking your cooperation in this matter. Thank you, John Doe Director of ABC Company

Choosing the Right Collection Agency This Time

To avoid repeating past mistakes, consider the following factors when selecting a new collection agency:

1. Prioritize Recovery Rate Over Low Contingency Fees:

While a lower contingency fee might seem appealing, it’s the recovery rate that ultimately determines your net returns.

Example:

• Agency A: 30% recovery rate, 40% contingency fee.
  • On $100,000 of outstanding debts, you receive $18,000.
• Agency B: 10% recovery rate, 25% contingency fee.
  • On the same amount, you receive $7,500.

Despite the higher fee, Agency A delivers a better return due to its higher recovery rate.

2. Ensure National Licensing and High Online Ratings

Select an agency licensed in all 50 states to handle accounts regardless of where your debtors reside.

If a debtor moves to another state, your agency should be able to continue collection efforts without legal hindrances.

For example: If your collection agency is licensed only in California where you and majority of your debtors reside, and some of your debtors move to Texas or Nevada, your collection agency will not be able to help you.

Select a collection agency with an online Google rating of more than 4.5 and with over 1000 reviews.

3. Demand Robust Technology and Compliance

• Online Client Portal: A secure, user-friendly portal allows you to submit and manage accounts, similar to online banking.
• Data Security: Ensure the agency employs stringent security measures to protect sensitive information.
• Compliance: The agency should adhere to all relevant laws, including FDCPA and HIPAA, and stay updated with local regulations.

4. Seek Industry-Specific Experience

An agency familiar with your industry can tailor its approach to your debtors.

Recovering for a car dealer, doctor or for colleges, each industry has a very different the way their debtors should be approached.

5. Evaluate Customer Service Quality

• Dedicated Contact: Having a single point of contact streamlines communication.
• Support Team: A central client support team can provide additional assistance when needed.
• Responsiveness: Prompt and effective communication is essential for a successful partnership.

Caution:

Be sure to inform your new collection agency about any accounts previously handled by the old agency, and tell them that you have a written confirmation that those accounts have been officially closed by the old agency. Do not assign disputed, bankrupt, or deceased accounts to the new agency; instead, write them off. Additionally, avoid transferring accounts that are over two years old.

Transferring accounts to a new collection agency can be risky if not done carefully. For example, having two agencies pursue the same account is illegal. Ensure all accounts are properly closed before making the switch. There may be other scenarios not covered here, so it’s important to seek guidance from your new agency or an experienced attorney during the transfer to avoid legal complications. If you’re unsure about an account, it’s best to avoid transferring it.

Switching collection agencies requires cooperation from both agencies. If your old agency isn’t providing adequate support, consider leaving existing accounts with them and assigning only new accounts to your new agency. Debt collection is governed by complex laws, and transferring uncertain accounts could pose legal risks for you.

Conclusion

Changing your collection agency is a significant decision that can positively impact your business’s financial health. By carefully terminating your current agency and thoughtfully selecting a new one, you can enhance debt recovery rates, ensure compliance, and improve overall satisfaction. Remember to prioritize recovery rates, ensure national licensing, demand technological excellence, seek industry experience, and value superior customer service in your new agency. With these considerations in mind, you’re well on your way to forging a more productive and profitable partnership.