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Q: Why can’t I just go after the money myself?
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You shouldn’t underestimate how much time and effort goes into pursuing a single delinquent account let alone several accounts! You have to track down the debtor, make phone calls, send letters, follow up on the progress, and if all that fails, file a lawsuit. It’s quite taxing and takes you away from more productive business tasks.
While it’s tempting to do it yourself to avoid paying the collection agency’s fee, consider the valuable time you save by not having to concentrate on retrieving previously earned funds.
Q: Why should I use a collection/billing service?
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The use of a quality third party collection/billing service provides the client the following benefits:
- Member retention
- Minimize future delinquent accounts
- Reduce overhead
- Increase cash flow
- Increase production
- Maximize profitability
Q: How does an agency initiate contact with the debtor?
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The collector begins the process with a standard letter to the debtor detailing the situation and the amount owed. The letter explains that the debtor is late, how much money is owed, and how the debt can be settled quickly and problem-free. From there, the debtor must respond in order to work out a payment arrangement or dispute the amount owed.
Q: Aren’t collection agencies overly aggressive?
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Collection agencies need to be direct and firm in order to get a delinquent account paid. But the days of the gruff collector that warns debtors to “pay…or else!” are long gone. Collection agencies are far more professional and must adhere to specific steps when going after past-due accounts. In addition, the Fair Debt Collection Practices Act (FDCPA) forbids collectors from threatening and harassing debtors. Violating the FDCPA could cost an agency their license and bring up formal charges.
Q: How much does the service cost?
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There are no up front costs associated with the collection of bad collection accounts. A contingency fee is charged based on a negotiated percentage. In other words, "No collection, no charge." (Phase-2 Collection accounts only)
Q: How do I set up services with your company?
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Setting up services with us is simple. Just contact the sales department using the Contact Us tab located on the Home of the page or submitting the New Client Registration Form located on the top of the Home page. A representative will contact you shortly to handle the details of your specific collection needs.
Q: How do I assign accounts?
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You can assign accounts in a variety of ways:
- Downloaded electronically to FCS from your existing software company
- Download electronically through our website
Q: How long will it take for you to collect my money?
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Not all claims are collectible as some debtors may skip, file bankruptcy, become deceased or just refuse to pay. The age of the debt also plays a part in how long it may take to collect anything, if the debt is old and/or the debtor requires backup paperwork that can prolong any collections.
Q: How actively do you pursue bad addresses?
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We continue to try to locate debtors for at least 6 months to a year, then we usually keep checking back on the account monthly to see if any files have been updated, such as credit bureau files, new address, employment, so we can locate them. The account is looked at weekly to make sure every effort has been made to locate the debtor so that we can then try to collect.
Q: Does the age of the debt make it more difficult to collect?
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Yes, the older a debt is, the harder it is to collect.
Q: Does your company charge an annual fee?
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No, we do not charge an annual or monthly fee.
Q: Do you have any requirements for us?
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The most important requirement we have is that you report to us if a debtor pays you directly. It is illegal for us to try to continue to collect once they have paid either you or us. Also, once you place the account with us, you must stop all in-house collection activity, cease sending monthly statements and discontinue the accrual of any interest. Please just refer any debtors that contact you directly to FCS.
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