Debt Recovery

Are you trying to find a good medical collection agency that is fully licensed in your state with high recovery rates? A collection agency with a license to collect in all 50 states.

Choosing the right medical collection agency is crucial to ensure your accounts receivable are managed effectively and ethically.

Hire the best medical debt collection agency: Contact Us

Here are some steps and considerations to help you select the best medical collection agency for your needs:

1. Care for Your Reputation:

Medical debt is very sensitive and can easily ruin a doctor’s reputation if a debt collector is rude, deceptive, or uses intensive tactics to recover patient bills. A good debt collector will recover your medical bills diplomatically and amicably, preserving your reputation. How do you find out? ( check their online reviews).

2. Online reviews:

Check for their Google Reviews. These days, not just the client (creditors) but even debtors/patients leave online reviews about collection agencies.

This reflects how well or how badly they were treated during the collections call. Select a collection agency with an online rating of 4.5 or more, and check if some of the reviews were left by debtors too. Negative reviews are common for collection agencies due to the nature of work, but they should be no more than 10% of the total online reviews.

3. Adharance to laws:

If a Collection Agency HIPAA Compliant? Do they follow FDCPA and local state laws? Do they do credit reporting? Once the medical debt is paid off do they remove it from the patient’s credit history? One very important law that no one talks about is – GLBA law. GLBA law ensures that your data is kept secure and limits who can access patient’s data. Data theft is common in today’s digital age, and GLBA compliance ensures that your and your patient’s data is kept safe by following the highest security standards.

4. Type of Services:

Do they offer both Fixed Fee and Contingency services? This includes pre-collection, early-out services, insurance resolution, collection demands, collection calls, and even legal suits if needed. Carefully review the contract terms, including the length of the contract, the services provided, the fee structure, and any other obligations.

5. Licensed in your State and Other States too:

Collection agencies should be licensed and insured in your state. If they have a license to collect in all 50 states, then you don’t have to worry if your patients move to a different state after the treatment.

6. Multilingual:

A Collection agency’s ability to talk to patients in both English and Spanish is a huge advantage. Some collection agencies will also have individuals who can speak Mandarin, Tagalog, Hindi, and Punjabi.

7. References:

Select an agency with experience in medical collections, as they will better understand this sector’s unique regulations and challenges. They should be able to provide references of other medical practices they serve in your state,

8. Accreditations:

Look for agencies with memberships in reputable industry associations such as the American Collectors Association (ACA) or the Healthcare Financial Management Association (HFMA).

9. Online Portal:

Look for agencies that utilize modern technology for tracking and collecting debts and provide you with real-time access to account information. Discuss how performance metrics are tracked and reported.

10: Customer Service:

Ensure you feel comfortable with the level of communication and professionalism the agency demonstrates. The agency will be interacting with your patients, so they must provide respectful and professional customer service.

 

If someone owes you money and they’ve failed to pay even after multiple reminders and negotiations, you might consider filing a lawsuit to recover the amount. Below is a general overview of the steps to file a lawsuit for non-payment.

A simpler and cheaper alternative: To avoid all the hassles of filing a lawsuit, consider forwarding this account to a collection agency. Professional debt collectors have been around for decades, and your internal staff cannot match their success rate, legal compliance and recovery cost. They can also file a lawsuit as a last resort. Need assistance: Contact Us

Filing a Lawsuit

Note that the exact process can vary by jurisdiction, so it’s essential to consult local rules and legal counsel for specifics.

1. Evaluate the Claim:
   • Determine the amount owed.
   • Evaluate the strength of your claim, i.e., do you have a written agreement, emails, texts, or other evidence of the debt?
   • Consider if the debtor has the means to pay; there’s little point in suing someone who is insolvent unless you hope to secure a judgment for future payment.
2. Attempt to Resolve the Issue Out-of-Court:
   • Send a formal demand letter detailing the amount owed, the basis for the debt, and a deadline by which payment should be made.
   • Consider offering a payment plan or negotiating a reduced amount as a compromise.
   • Think about mediation or alternative dispute resolution methods.
3. Determine the Proper Court:
   • For smaller amounts, you might file in small claims court, which is typically quicker and less formal.
   • For larger amounts, you’d file in a higher court (like a district or superior court).
4. Gather Documentation:
   • Collect all relevant evidence like contracts, invoices, emails, payment receipts, or any communication related to the debt.
   • Organize your evidence to present a clear and chronological case.
5. File the Complaint:
   • Draft a complaint that details your claim. This document outlines the facts of the case, the legal basis for your claim, and what you’re asking the court to do.
   • File the complaint with the appropriate court, and pay any necessary filing fees.
6. Serve the Defendant:
   • Once you’ve filed, the other party (the defendant) needs to be formally notified. This is typically done by a process server or law enforcement officer.
   • Ensure you follow the local rules for service, as improper service can delay or jeopardize your case.
7. Await the Defendant’s Response:
   • After being served, the defendant typically has a set amount of time to file a response or answer.
   • They might admit to the debt, deny it, or raise defenses.
8. Engage in Pre-Trial Procedures:
   • This can include discovery, where both sides share evidence and information. It might involve written questions (interrogatories), document requests, or depositions.
   • Both sides might file motions, asking the court to make certain decisions before trial.
9. Trial:
   • If you can’t settle out-of-court, your case will go to trial.
   • Present your evidence and make your case. Depending on the court, you might be before a judge or a jury.
10. Judgment:
    • If the court rules in your favor, you’ll receive a judgment stating the amount the defendant owes you.
    • Even with a judgment, you might still need to take steps to collect the money, such as wage garnishment, liens, or other methods.
11. Consider Legal Counsel:
    • Especially for larger amounts or complex cases, consider hiring an attorney to guide you through the process and represent your interests.

It’s essential to be aware of any statute of limitations that applies to your claim. If you wait too long, you might lose the right to sue for the debt. Always consult with an attorney or legal professional about the specifics of your case.

Businesses and medical professionals with overdue invoices regularly hire collection agencies to recover money for which their own efforts have been exhausted.

Businesses must find a reputable agency with experience in their particular industry or sector. Before hiring a collection agency, it’s crucial for businesses to do thorough research, read reviews, and possibly even seek recommendations from peers in the industry to ensure they’re partnering with an agency that will handle their collections professionally and ethically.

Need a highly-rated collection agency? Contact Us

A collection agency with good online reviews or high recovery rate endorsements from other businesses can give tremendous confidence to anyone looking to recover overdue bills. Not just that, there are collection agencies who proudly showcase thousands of 5-star reviews left by debtors who were so satisfied with their collections approach. Sounds unbelievable?  It’s true, because debt collectors may request positive reviews from debtors who have been assisted amicably and become debt-free.

While online reviews can provide a glimpse into other businesses’ experiences with a particular agency, it’s crucial to approach this process with care and diligence. Here’s a step-by-step guide on how to hire a collection agency with good online reviews:

1. Start with Research: Before you even look at reviews, make a list of agencies that specialize in your business niche or industry.
2. Read Multiple Review Platforms: Don’t rely on just one review platform. Check out several, including Google, Yelp, BBB (Better Business Bureau), and industry-specific sites.
3. Look Beyond the Star Rating: While a high star rating is encouraging, it’s important to read the content of the reviews. This will provide insight into common themes or issues.
4. Check for Response to Negative Reviews: A collection agency’s response (or lack thereof) to negative feedback can be telling. An agency that professionally and constructively addresses criticism might be more trustworthy than one that ignores or responds aggressively to negative comments.
5. Ask for References: Once you’ve shortlisted a few agencies based on online reviews, ask them for references. Directly talking to previous clients can provide deeper insights.
6. Look into Their Practices: It’s essential that the collection agency uses ethical methods. The last thing you want is for your brand’s reputation to suffer because an agency uses aggressive or unlawful tactics.
7. Check Licenses and Accreditations: Ensure the agency is licensed to operate in the state where your debtors are located. Membership in associations like ACA International can also be a positive sign.
8. Consider Their Reporting Capabilities: It’s essential to be updated on the agency’s efforts and success rate. Ensure they can provide regular reports on their activities.
9. Negotiate Fees and Contracts: There are different fee structures like fixed fees, contingency fees, etc. Ensure you understand and are comfortable with the terms before signing a contract.
10. Pilot Test: If possible, start with a smaller batch of accounts to gauge the agency’s effectiveness before handing over your entire portfolio of delinquent accounts.

Do you offer services like garage door installation, patio design and installation, door and window manufacturing, antique furniture refurbishing, appliance repair service, custom blinds,  basement remodeling, cabinet making and other home improvements?

Do you have unpaid bills from your customers and cannot recover yourself? A professional collection agency can recover your overdue invoices ethically and legally.

Need an experienced collection agency? Contact Us

Door and Window Services businesses, like other specialized industries, often have unique sets of Accounts Receivable (AR) and billing challenges. Here are some potential issues they might face:

1. Complex Billing: Installing or repairing doors and windows can involve multiple components and services, each of which needs to be itemized correctly on invoices. Complexity can arise from the various product types, customization, and additional services like inspection or maintenance.
2. Payment Terms: Some customers might negotiate longer payment terms, leading to longer AR cycles and potential cash flow issues for the business.
3. Project-Based Work: Given that many of these services might be project-based (e.g., a new building or a renovation), billing can be linked to project milestones. Delays in project completion can lead to delays in invoicing and, consequently, receiving payment.
4. Warranty Claims: If a door or window fails or doesn’t meet expectations within the warranty period, the service might have to handle replacements or repairs without additional revenue, and manage potential disputes that can delay payments.
5. Partial Payments: For larger projects, customers might make partial payments. Tracking these can be complex, especially if there are disagreements about work quality or project progress.
6. Customer Disputes: Billing disputes can arise from misunderstandings about the scope of work, the quality of installations, or the materials used. Resolving these disputes can delay payments.
7. Seasonality: The construction and renovation industry can be seasonal, especially in regions with distinct weather patterns. This seasonality can lead to peaks and troughs in cash flow, complicating AR management.
8. Variable Costs: Costs for materials like aluminum or other components can fluctuate based on global supply chains, tariffs, or other economic factors. If billing doesn’t accurately reflect these costs, the business might face thinning margins.
9. Regulatory and Compliance Issues: In some regions, aluminum door and window installations might be subject to building codes, safety regulations, or energy efficiency standards. Non-compliance can lead to rework, penalties, or billing disputes.
10. Manual Processes: Smaller businesses might still rely on manual billing processes, which can lead to errors, lost invoices, or delays.
11. Client Solvency: Especially in the case of B2B transactions, if a primary client (like a construction company) faces financial difficulties, it might delay or default on payments.

Foreign entities with accounts receivable from USA businesses can recover money by hiring an American collection agency.

Companies from Japan, China, Europe, Hong Kong, Canada, Mexico, Singapore and India can recover money from Americans with adequate supportive documentation. This includes exporters, importers, equipment manufacturers, technology companies, and medical collections.

Need a Collection Agency: Contact Us

How does it work?

• Signed contracts and communication in the English language that proves that the debt is owed. That documentation should be valid in USA courts.
• Debt should ideally be more than 30,000 dollars.
• All documentation should be shared in advance so that the compliance officer of the collection agency can evaluate if the collection is advisable.
• In cases where the compliance officer concludes that the case should be directly handled by an attorney ( rather than a commercial debt collector), the client must bear the court filing fee.
• Fee: All collection charges are contingency-based (It means the collection agency or the lawyer makes nothing unless they collect for you, they only keep a percentage of the amount collected). Contingency fee ranges from 25% to 50% depending on the complexity, age and balance of the debt.
• Not mandatory, but we prefer you to have a USA bank account so that the recovered funds can be transmitted to you electronically. The collection agency will deduct the wire transfer fee if money is sent internationally to your bank account.
• Not mandatory, but we prefer that you have a USA-based contact (your business associate, even an authorized friend) whom we can contact in case additional backup documents are needed or we need to discuss something related to the debt.

Collection activity is a slow and effective process. Trust your collection agency partner and never hide details pertaining to the case. Since they work on a contingency-based fee, there is nothing to lose.

What about debtors outside USA

Most USA-based collection agencies will not collect from foreign debtors or international businesses, because USA has some of the most regulated consumer protection laws compared to the rest of the world. The reasons include the following:

• Biggest legal challenge: Since contracts are generally signed in USA with a USA-based entity, but their debtor lives in a foreign country like the European Union, it can be tricky. To be safe, all collection agencies involved (domestic and international) should ideally be 100% compliant with both countries’ collection and data security laws (say USA and the European Union).

•  Keeping up with a host of USA collection laws (FDCPA, GLBA, FCRA, TCPA etc..) is quite a task as all 50 states act like 50 countries ( separate collection laws and time zones). Laws in California are different from New York. Laws of New work are different from those in Nevada and Texas. Etc.

• US collection agencies strive to maximize collection rates for their clients ( with US debtors). Timezone can be another challenge if international collections are initiated from United States.

• Most international collection agencies have their coverage in USA (and sometimes in Canada). For debt recovery in other countries, they tie up with local agencies, agents, and lawyers. Technically, they are not licensed to work themself,  so they outsource collections. We feel this is very risky.

For example, the latest law, “the GLBA” data security law, requires collection agencies to be approximately as secure as banks. Foreign countries do not locally enforce this law. This leaves US creditors at a great risk, each time they transmit patient data that will eventually flow to a foreign country. The foreign collection agent/lawyer may not follow GLBA, HIPAA and FDCPA laws. What if the foreign debtor hires a USA-based attorney and tries to sue the provider? Not sure how things change by each country. So a domestic collection agency generally opts to handle debtors in the USA only (that we understand very well), without using foreign entities.

• A better approach is to try to collect from the USA person/citizen who acted as a guarantor/cosigner of their foreign debtors/patients. Use Kinum Step 3 / Kinum Legal approach in such cases.

Have you made excessive employee payments and are finding it hard to recover these payroll over-payments? An experienced collection agency can recover your unreturned equipment, laptops and excessive money paid from your ex-employees and contractors who are not responding to your efforts to get your money back.

Fact: When your ex-employee or contractor realizes that a professional debt collector is now doing collections, they instantly become more fearful, a lot compromising, and dig deeper into their pockets to resolve the matter. A collection agency can put adequate pressure, impact their credit score, make persistent calls for months and even take them to court to recover your money.

Need an experienced Collection Agency to recover overpayments?   Contact Us

Overpayment of wages can occur for various reasons. Some of these are unintentional, resulting from administrative errors or misunderstandings, while others can be intentional as a result of fraud or other improper activities. Here are some common reasons for the overpayment of wages:

1. Clerical Errors: Mistakes in data entry, miscalculation, or misinterpretation of wage rates can result in an employee receiving more than what’s due.
2. Misunderstanding Work Hours: If an employee’s hours are not properly recorded or are misinterpreted, they could be overpaid. For instance, failing to account for breaks or wrongly inputting overtime hours.
3. Duplication: Payroll might process the same payment more than once due to a system glitch or human error.
4. Retroactive Pay Increases: If a pay raise is given retroactively and not calculated correctly, it can result in overpayment.
5. Failure to Account for Absences: If an employee takes unpaid leave or has other deductions but they are not factored into the pay, it could result in overpayment.
6. Incorrect Tax or Other Deductions: Mistakes in withholding or not accounting for certain deductions can alter the net pay.
7. Advance Payments Not Deducted: If employees receive advances on their wages, but these advances are not properly deducted from subsequent paychecks, this can result in overpayment.
8. Termination Discrepancies: When an employee leaves a company, ensuring they’re paid for only the time they worked can be a complex process. Missteps can result in overpayment.
9. Benefits Miscalculations: Overestimating the cash equivalent of benefits can result in an overpayment.
10. Commission and Bonus Errors: Misunderstandings or miscalculations related to performance-based earnings can result in overpayments.
11. Lack of Proper Oversight: Without regular audits or checks on the payroll system, overpayments can go unnoticed for extended periods.
12. Fraudulent Activities: Though less common, intentional actions by an employee or a group of employees, like clocking in for someone else (buddy punching) or manipulating the payroll system, can lead to overpayments.
13. System Migration or Upgrades: Switching to a new payroll system or software can sometimes lead to glitches that cause overpayment.
14. Lag in Implementing Changes: Delays in updating employee records after a salary reduction, demotion, or change in hours can lead to overpayment.
15. Poor Communication: Miscommunication between departments (e.g., HR and payroll) can result in inconsistencies in pay.

If overpayments do occur, it’s crucial to address them promptly and transparently, keeping in mind the legal and ethical considerations involved.