For many businesses, turning to a debt collection agency is the best way to have delinquent accounts paid. Whether you are on the business or the consumer side, chances are you’ll have some questions about this process if you find yourself in it. Here are some frequently asked questions, so you know what to expect and how to best handle the situation.

FAQ About Debt Collection 

What does a collection agency charge?

Most agencies will only charge based on the debts they succeed in settling, which makes their value well worthwhile. How much they charge will depend on the type of collection. For example, they tend to charge more for consumer collection than commercial collection.

What do they do?

A third-party collection agency will retrieve the information on the past-due accounts from the business. They will start contacting the debtors to bring the account current. If possible, they will have the debtor pay the entire bill immediately. If that is not possible, they will try to set them up with a payment plan or discuss with the business whether they want to hire an attorney for legal action.

How do they contact debtors?

Agencies will usually begin with a letter—or multiple letters—notifying the debtor that their payment is due immediately. They will then start calling daily and sending regular letters. This consistent contact is often enough to get the debtor to pay. If it isn’t, they may report the debt to credit bureaus or recommend taking legal action.

What are the signs of a reputable agency?

Avoid unlawful or deceptive practices by hiring a reputable company. Look for an agency that holds memberships in professional organizations, such as the Association of Credit and Collection Professionals, the Commercial Law League of America, and the International Association of Commercial Collectors. Other qualifications to look for may include a good rating with the Better Business Bureau^®.

When you need a dependable debt collection team, turn to Joseph, Mann & Creed in Twinsburg, OH. They serve businesses across the country by offering a full range of accounts receivable management solutions, from negotiating to mediating. When you work with them, you’ll see why they have higher recovery percentages than their competitors. Learn more about their services online, and call (216) 831-5626 to request a quote. Visit them on LinkedIn to learn more about their work.