questions for a collection service

Started by JC3 • 3 replies • 1230 views

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JC3
Posts: 290

Posted:

What questions do you suggest we ask representatives of collection services?
Costs seem to be 40%-50% of collected amount. Is that standard?
One mentioned a charge to report to the credit companies.
Size of their data base?
Local or nationwide?

Any others?
We're new at this--all suggestions are appreciated.

PaulJ (South Carolina)
Posts: 40

Posted:

My view is that collection services are a waste of time (and money). Laws limit what they can do. All you have to do is write a letter and tell them never to bother you again. A direct creditor (if you are one) has more power to collect. They can't tell you to stop bugging them. Anyone who pays a collection service will likely pay you as well. Anyone who isnt going to pay won't pay a collection agency either.

RogerB (Colorado)
Posts: 5,067

Posted:

JC3, I recommend not using a collection agency because IMO they are too expensive and not effective. We do the collection of delinquent accounts for our client HOAs by mailing monthly delinquency statements and when necessary filing liens. If it would require going to court to garnish wages and if necessary foreclosure an attorney is recommended.

BradP (Kansas)
Posts: 2,640

Posted:

JC3:

Our lawyer recommended not using a collection agency, they said use your lien power to collect, that is a better method.

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