How to Find a Good Commercial Debt Collection Agency
Here are some tips on how to find a good commercial debt collection agency:
What to Look For
- Do your research. First, ask other businesses for referrals. Then read online reviews, and check with your state’s attorney general’s office for complaints filed against the agency.
- Make sure the agency is licensed and accredited. Most states require commercial debt collection agencies to hold a license. Look for accreditation from a reputable trade association too, such as ACA International or the Commercial Collection Agency Association (CCAA).
- Get a clear understanding of fees and payment structure. Because pricing varies widely, confirm upfront how much the agency charges and what percentage they take from any debt they collect.
- Make sure the agency knows the FDCPA. The Fair Debt Collection Practices Act protects consumers from unfair, deceptive, or abusive collection practices, so choose an agency that understands it and complies fully.
- Get everything in writing. Before you hire an agency, put its fees, payment structure, and communication policies in writing.
Here are some additional things to consider when choosing a commercial debt collection agency:
A Few More Things to Consider
- Experience. Also, ask how long the agency has operated and whether it has direct experience collecting commercial debt.
- Success rate. Find out what percentage of debt the agency typically collects.
- Customer service. Finally, notice how responsive the agency is to your questions and concerns.
- Technology. Confirm the agency uses up-to-date technology to track and collect debt.
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