While ProCollect strives to offer the best possible rate, this should not be the primary consideration when selecting a collection agency.
Too many times a company will go with rates without determining the qualifications of an agency. If the collection agency knows little about the intricacies or doesn’t have the staff or management to work your accounts properly, it is highly unlikely the lower rate will result in more revenue to your company.
Example, if a company places $100,000.00 to a collection agency and the agency charges a rate of 40% and produces a 25% recovery, the return will be $15,000.00. However if another collection agency charges a rate of 35% but only produces a 15% recovery, the return would be only $9,750.00.
Don’t be steered by rates only. Choose a collection agency with proven results.
Our fees are determined by a combination of the following:
- Average age of the accounts referred.
- Average balance of accounts referred.
- Type of account (i.e. Apartment, Retail, Bank, Utilities, Physicians, Hospitals, etc.)
- Volume of accounts referred on a monthly basis.
- Accuracy of account information.
FACTORS AFFECTING RECOVERY RATES
We are extremely confident in our recovery system and believe we have the staff and experience that will achieve the results that you expect. While no collection agency can guarantee 100% results we believe we have tailored an approach that will insure the best possible results for your company, therefore doubling the national average for collections.
Do you have the proper information to help recover your bad debt?
We will need the following:
- Name
- Address
- Social Security #
- Home, Work Phone Numbers
- Emergency Contact Phone Numbers
- Dates of Service
- Contracts / Leases
- Accuracy of charges
THE RULE OF 16’s
Studies conducted by the American Collectors Association (ACA) concluded that for every thirty days an account remains dormant, it is 16% less likely to be collected. Thus, it is easy to see that when accounts are not worked on a consistent basis and sit dormant for six months or longer, they are much less likely to be collected.
Several reasons are attributed to this:
- Debtors are more difficult to locate. After six months, “address forward requests” are dropped/removed from the United State Post Office and phone numbers through Directory Assistance are dropped.
- Emergency contact information can be unusable.
- Debtor has made a large purchase (home, refinance home, car loan or credit card) and does not need a positive credit rating anymore. Placing the negative information on the credit bureaus within 30 days can greatly increase our collection returns. Most debtors realize they are going to have a negative credit rating and therefore apply for new credit before they have the negative rating.
- In the consumer’s mind, if they have not been contacted in the first 60-90 days the debt (albeit an incorrect one) has somehow been forgiven.
- Internet Skip Trace sites are unable to locate because of age of account.
When a debtor knows they have bad credit, they obviously do not apply for new credit. For this reason the Credit Bureaus are not sent new updated information on the debtor.