Frequently Asked Questions
For Clients or Potential Clients
How long does it take to collect?
The length it takes to collect on a past due account varies depending on the nature of the past due account. The longer an account has been past due, the more time it will take in order to collect on the past due debt. The type of debtor will also have an effect on how long it will take to collect. Some debtors may be experiencing hardships, and will pay when they are able to. Other debtors may dispute the debt, and thus much more investigation is needed in order to collect. More serious cases that will take much more time are when litigation is needed, where the debtor must be taken to court in order to see the debt paid off.
What kind of accounts can I submit?
Different collection agencies will handle different kinds of accounts. It is a good idea to contact the collection agency beforehand and make sure they will be able to handle your kind of account. It is also a good idea at this time to make sure the collection agency understands your business’ industry, so they will fully understand the kind of debt you have. Full service collection agencies, such as Commercial Investigations Inc. will handle almost, if not all, kinds of past due accounts you might come across.
How does a collection agency contact a debtor?
The collection agency will contact the debtor through either a series of letters or phone calls or a mixture of both. Some collection agencies might have you pay a base fee that will cover a certain number of phone calls or letters. Collection agencies that work on a contingency based fee will do as many phone calls or letters it takes in order to see the debt paid off.
What if the debtor disputes?
Debtors have the right to send the collection agency a written explanation and supporting documents to back up their claim if they dispute the debt. The collection agency will then investigate the dispute and if it determines the debt is valid, is required to send all documentation that shows the debt is valid and the amount owed is correct. If the debtor still disputes or refuses to pay off the debt after the collection agency has provided all verification, the account can often be forwarded to litigation.
What will I need to provide?
Any documentation that supports the debt, such as records, invoices, statements, records, or bad checks. These should have certain information that will be needed in order to collect, such as information on the debtor (name, etc.), the amount owed, date the debt was incurred, and any payments received. Any information on your debtor should be given to the collection agency. If your debtor has moved or you simply do not have information such as address or phone number, most collection agencies will need to do “skip-tracing” to find out the information needed. Most collection agencies will not charge more for these services.
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