Here are some tips on how to find a good commercial debt collection agency:
- Do your research. Ask for referrals from other businesses, read online reviews, and check with your state’s attorney general’s office to see if any complaints have been filed against the agency.
- Make sure the agency is licensed and accredited. Commercial debt collection agencies are required to be licensed in most states. They should also be accredited by a reputable trade association, such as the Association of Credit and Collection Professionals (ACA International) or the Commercial Collection Agency Association (CCAA).
- Get a clear understanding of the agency’s fees and payment structure. Make sure you know how much the agency will charge you upfront and how much they will take as a percentage of the debt they collect.
- Make sure the agency is familiar with the Fair Debt Collection Practices Act (FDCPA). The FDCPA is a federal law that protects consumers from unfair, deceptive, or abusive debt collection practices. The agency you hire should be familiar with this law and how to comply with it.
- Get everything in writing. Before you hire a debt collection agency, make sure you get everything in writing, including the agency’s fees, payment structure, and their policies on how they will communicate with debtors.
Here are some additional things to consider when choosing a commercial debt collection agency:
- The agency’s experience. How long has the agency been in business? Do they have experience collecting commercial debt?
- The agency’s success rate. What percentage of debt does the agency typically collect?
- The agency’s customer service. How responsive is the agency to your questions and concerns?
- The agency’s technology. Does the agency use up-to-date technology to collect debt?