Frequently Asked Questions
For Clients or Potential Clients
Do I have to submit all my past due accounts to one collection agency?
Some collection agencies may require you send all your past due accounts to the same agency while others do not. It is a good idea to send all your past due accounts to one company for the sake of simplicity. (Commercial Investigations Inc does not require you to send all your past due accounts. If you are currently with another collection agency, and wish to give Commercial Investigations Inc. a try with one of your past due accounts, you are more than welcome to send us one of your accounts while still working with your other collection agency. If we prove more successful than your current collection agency, you are more than welcome to send any and all other past due accounts you may have.)
Are there annual contracts or fees?
Some collection agencies may require you to sign an annual contract or pay annual fees while others do not. (Commercial Investigations Inc. does not require annual contracts or annual fees.
Are there any requirements?
The biggest requirement is that any accounts submitted are valid. Do not submit accounts where the debtor has already paid in full. Also, if you must notify the collection agency you are working with if the debtor pays you at any time. The collection agency cannot continue to collect on the debt if the debtor pays. Lastly, stop all in house collections once your account has been submitted to the collection agency. It is a good idea if the debtor contacts you to refer them to the collection agency and allow the collection agency to handle it.
How much will it cost?
Cost varies depending on the collection agency you decide to use. Some collection agencies will buy the rights to the debt, but not for the full balance. They will in turn seek to collect the debt for the full amount. Other agencies will collect on a contingency basis. This means they will charge a percentage of the total amount collected. In the event they do not collect, there will be no fee, and usually will offer other options including litigation. The percentage usually ranges from 25%-50%, depending on the nature of the past due account. The older an account is, the harder it is to collect. Accounts under a certain amount will usually see a higher percentage, while large past due accounts will see lower percentage rates.
When can I submit an account to a collection agency?
You can submit a past due account to a collection agency at any time. Most businesses wait until they have exhausted their own arsenal in the attempt to collect on the debt. Though, it is good to keep in mind that the longer an account is past due, the harder and less likely it will be that anyone can collect on it. For more information about when to submit an account, read Commercial Investigations Inc. guide. And for more information on improving in-house collections, click here.
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