WHAT TO LOOK FOR IN A COLLECTION AGENCY

• Place past due accounts with a collection agency on a contingency fee basis, never pay up front collection fees or commit to any other fees;
• Use a collection agency that treats your clients, customers or patients in a manner that you are comfortable with;
• Use a collection agency that skip traces (locating debtors) and reports past due accounts to the credit bureaus without charge;
• Use a collection agency that is affiliated with collection attorneys in the event that legal action is necessitated;
• Do not sign a contract with a collection agency that locks up your accounts with them for a long period of time or does not allow you to quickly take back your accounts from them if no positive collection activity has taken place;
• When remitting accounts for collection, supply a detailed invoice of products or services rendered, an agreement signed by debtor, if one exists, and all demographic information about debtor (i.e.; application form).

If you owe money;

• Be honest and forthright with the creditor and notify them why you have been unable to fulfill your financial obligation;
• Propose a periodic payment plan that you can live with and stick to it. The creditor will in most instances accept your proposal because voluntary payments are a much better alternative to involuntary collection procedures;
• Offer a settlement amount if you pay immediately (i.e.; 70% of the balance due) - you will be surprised at how many offers are accepted;

If the account is placed with a collection agency;

• Perform all of the above and insist that the account not be placed on your credit report if you make the payments.

For one annual free or low cost copy of your credit report or to dispute a reported item;

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