Find out what sort of debtors the collections agency most often deals with and the sort of businesses it serves.Be sure the one you hire is bonded, licensed, and adheres to the rules of the Fair Debt Collection Practices Act.
Ask if the Agency Uses “Skip Tracing.” Good collection agencies use a process known as “skip tracing,” accessing several databases to locate a debtor who has left no forwarding address.
Be Sure the Agency has Insurance. Get proof of insurance from your debt collector to be sure you are covered in the unlikely event that your debtor takes you both to court, claiming unfair or inappropriately aggressive tactics.
Compare fees and Contingency Costs. Some charge a flat fee, while others follow a contingency model, which is the most typical arrangement. Most follow a “No Collection – No Fee” model.
Be aware that when you hire a debt collector, you will NOT be receiving the full amount you are owed. For that reason we recommend that you exhaust your other options before hiring one.
Dealing with debtors can be a slow, frustrating, process. It can drain your resources. When you have no other recourse, it is best to hire a debt collector instead of simply letting your debtor get away with NOT PAYING YOU.