Debt Recovery

If you operate an outdoor recreation facility such as a sports arena or theme park, a shift to subscription-based revenue models has introduced a new process to manage – collections. While recovering amounts owed to a company can present a challenge to any company, park-based businesses have an added tool for collections. As a provider of experiences, let your focus on relationships be an asset for improved collection results.  By remaining engaged with customers, your entire relationship improves, including when a bill is unpaid.

Collection Letters Service

Upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees. Low cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

How customers pay for experiences has changed

Theme park and outdoor sporting venues traditionally did not often experience collections issues with customers. The revenue stream was limited to individual transactions, such as a customer buying a ticket or paying for a concession item. Increasingly, today’s outdoor parks and venues think in terms of delivering customer experience through a monthly subscription service. Instead of a transaction, theme parks and other venues sell an ongoing relationship.

Moving to a subscription-based service introduces the need to monitor customer churn. Churn rate is a measurement of lost customers in subscription-based sales. If you’ve moved to subscription-based sales for any portion of your offerings, your collection efforts will more likely be targeted at reducing churn, not at collecting past due bills.

Reduce churn by providing persistent customer value

Companies experience the least amount of churn when they provide a customer experience that delivers enjoyment.

Delivering customer value keeps them engaged and repeat users, etc.

Can then conclude with some tips of how to keep customers engaged and also how to win them back if they’ve cancelled or let subscriptions lapse.

The “Phantom Debt” Crisis is Here. Is Your Reputation-Safe Recovery Strategy Ready?

The landscape of consumer credit has shifted. By 2025-26, the global BNPL market has surged to $600 billion, yet nearly 41% of users report missing a payment in the last 12 months. This isn’t just standard bad debt; economists call it “Phantom Debt”—liabilities that often don’t show up on traditional credit reports, making risk assessment nearly impossible for merchants.

If you are a BNPL provider or a retailer running an internal installment program, you face a unique mathematical problem: High Volume + Low Balances.

Sending a $65.00 defaulted installment to a traditional agency charging 40% contingency destroys your margin. You need a smarter, data-driven approach.

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Why NexaCollect? The “Micro-Balance” Economics

Most collection agencies are built to chase $5,000 credit card balances. They fail with BNPL because their cost-to-collect is too high. NexaCollect is different. We have engineered a Fixed-Fee Digital Waterfall specifically for the BNPL ecosystem.

1. Balance Grading & Propensity Scoring (The “Brain”)

Before we make a single contact, we analyze your portfolio. Since many BNPL users have “thin” credit files, FICO scores alone are useless. We use Alternative Data Modeling to grade accounts:

• Grade A (High Propensity): The “Forgetful” Payer. Good history, likely just missed an email. Strategy: Low-cost digital nudges.

• Grade B (Medium Risk): The “Overextended” Payer. Juggling multiple BNPL loans (stacking). Strategy: Structured payment plans.

• Grade C (High Risk): The “Intentional” defaulter. Strategy: Aggressive contingency collections.

The Result: We don’t waste expensive human labor on Grade A accounts. We automate them, saving you thousands in fees.

2. Seamless API & SFTP Integration

We act as an invisible extension of your ERP. Whether you use Shopify, Magento, or a custom lending platform, we accept:

• REST API : real-time placement (for instant escalation after Day 90).

• SFTP Batching:  (CSV/XML) for weekly portfolio sweeps.

• Two-Way Sync: When a user pays us, your system updates instantly to unlock their purchasing power again.

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Pricing & Services: The BNPL “Waterfall”

We flipped the model. Instead of taking a huge cut of your small orders, we offer a flat rate for early-stage recovery.

Step 1: The “Digital Nudge” (White-Label)

• Cost: ~$15 per account (Fixed Fee).

• Best For: Balances < $200; 30-90 days past due.

• The Strategy: Omnichannel reminders (SMS, Email, Letter) sent in your brand’s voice.

• Why it works: It feels like customer service, not collections. It preserves the customer’s dignity—and their lifetime value (LTV).

• You Keep: 100% of the recovered funds.

Step 2: The “Compliance Firewall” (Agency Name)

• Cost: ~$15 per account (Fixed Fee).

• Best For: 90-120 days past due.

• The Strategy: The tone shifts. The demand comes from “NexaCollect,” signaling serious consequences to the consumer’s future borrowing ability.

• Why it works: It breaks the “subscription fatigue” cycle.

Step 3: Contingency Collections (Deep Tracing)

• Cost: 30% – 40% of amount collected (No Recovery = No Fee).

• Best For: “Ghost” accounts, potential fraud, or balances > $500.

• The Strategy: Our team manually skip-traces users who have changed addresses or phone numbers—a common issue with Gen Z renters.

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Q&A: Addressing Your BNPL Challenges

Q: Our average order value (AOV) is only $85. Is it worth collecting?
A: Yes, but only with Step 1. If you use a standard 40% contingency agency, you recover ~$51. With our Step 1 (~$15 fee), you net $70. Multiplied across 1,000 defaults, that is a $19,000 difference to your bottom line.

Q: Do you report to Credit Bureaus?
A: Yes, but strategically. Reporting a $50 debt immediately can seem punitive and trigger “revenge reviews” online. We use credit reporting leverage in Step 3, giving the consumer ample time to cure the debt before we damage their score.

Q: Can you handle “Friendly Fraud” (Item Not Received claims)?
A: Absolutely. This is the plague of e-commerce. Our portal allows you to upload Proof of Delivery (POD) instantly. We attach this proof to our demand notices, effectively shutting down invalid disputes before they become chargebacks.

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Recent Results: BNPL & E-Commerce Recovery

• Fast Fashion Retailer (Gen Z Focus):

  • Challenge: 12,000 micro-balances (avg $45) from a “Split in 4” program. Traditional agencies refused the file due to low balances.

  • Nexa Solution: Automated Step 1 campaign via SMS/Email only.

  • Result: Recovered 41% of the portfolio (approx $221,000) for a total cost of just $1.50 per dollar collected.

• Electronics “Lease-to-Own” Platform:

  • Challenge: High-value defaults ($1,200+) on gaming laptops. Customers were “ghosting” after the first payment.

  • Nexa Solution: Balance Grading identified that 60% of these debtors had high utilization on other cards. We moved them straight to Step 3 (Intensive).

  • Result: Recovered $185,000 in assets and cash. The skip-tracing team located 300+ devices for repossession/payment.

• Luxury Skincare Brand (Subscription Model):

  • Challenge: High “passive churn” from expired cards on $150 auto-ships.

  • Nexa Solution: A “White-Label” Step 1 campaign focused on account updating rather than debt collection.

  • Result: $62,000 collected, plus 450 customers updated their billing info, restoring $67,000/month in recurring revenue.

Need a Collection Agency? Contact us

ISP organizations frequently turn to debt collection agencies to collect unpaid bills and other outstanding fees to help them. Beware, some collection agencies are less than reputable and can use shady or even downright illegal practices to collect what is owed to the ISP and cable company.

Serving ISP/Cable Providers Nationwide Need an ethical Collection Agency? Contact Us

Here is a story of one such instance that illustrates why ISP/cable companies must work with a reputable and ethical debt collection agency.

New York vs. A large ISP Provider 

In one well-known case that began in 2019 and continued in 2020, Congressman Anthony Brindisi (D-NY) was taking on the ISP and cable company for their debt collection practices. Brindisi has asked the U.S. Consumer Financial Protection Bureau to investigate the practices that have been used to collect consumer debt. This aggressive and non-transparent debt collection by a third-party debt collector had landed ISP in quite a bit of hot water.

An Ethical Debt Collection Company

In addition to getting their ISP and cable company clients in trouble, Credit Management also did a disservice to all debt collection agencies by using these tactics. They fed into many of the stereotypes of debt collection companies which are not true in many cases. When ISP and cable companies work with the right debt collection companies, they can recover money owed and get it in a way that will not damage their reputation or land them in trouble with Congress.

An ethical debt collection company will work hard and use all acceptable means to collect on a debt. Still, they will do so in a way that is respectful and honest to the consumer and protective of the ISP and cable company’s reputation. They will also have a deep knowledge of the Fair Debt Collection Practices Act and follow it to the letter to avoid getting themselves or their clients in legal or regulatory trouble.

A typical collection agency can accept overdue accounts of an ISP/cable provider for debt recovery which are no more than three years old.

These days, there are very few things that almost everyone uses. However, most people do have a relationship with an Internet Service Provider (ISP) and Cable Company. Even as more people cut the cord and move away from cable television, the internet and the companies that provide it have become even more important. Anyone who works from home or has any streaming entertainment service needs internet and the ISP company that provides it. Because these companies are so prevalent in so many people’s lives, it is no surprise that they run into many unpaid bills.

Collection Letters Service

The upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees and a low-cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

Common billing issues

Late Fees and Reconnection Fees: Customers can incur late fees if a payment is missed. In cases where service is disconnected due to non-payment, there might be a reconnection fee.

Data Overages: Some plans have data caps, and customers might be charged extra for exceeding those caps.

Cancellation Fees: Early termination fees are common in contracts if they decide to cancel the service before the end of the contract.

Conclusion 

This is a cautionary tale of why ISP and cable companies must work with a reputable, ethical debt collection company. The need for these companies is a reality in this business, and working with the wrong one can be very damaging.

The YMCA is one of the largest and oldest non-profits worldwide. They serve more than 60 million people in 120 countries and are essential pillars of the community in small towns and big cities. They provide vital services for underserved populations and all types of programs and facilities for the local community. For most, the local YMCA offers these facilities and programs for a fee, and unfortunately, these fees sometimes go unpaid. In these instances, YMCAs need help recovering the money they are owed so the organization can stay financially healthy. Here is how working with an experienced, ethical debt collector can help YMCAs accomplish this.

Serving Youth Organizations Nationwide Need a Debt Collection Agency? Contact Us

Why YMCAs Need Debt Collection 

YMCAs have two general types of programs they provide. There are free programs that serve the members of the community who are in need. These include family services, education outreach, child welfare, and foster care programs. Keeping track of who owes what and when payments are due can be cumbersome, especially if the YMCA center does not have a robust accounting system. Delay in payments can affect the cash flow of the YMCA center, making it difficult to manage operating expenses.

These services that local YMCAs play a massive role in the community and do so much for people in need. The challenge for YMCAs in offering these types of programs is that they cost a good deal of money and do not make any money for the organization.

This means that YMCAs must offer other ways to support these vital community-building programs. One of the ways they do this is by offering paid facility use and programming for the segments of the community who want to partake. This includes things like providing fitness facility use, dormitories, facility rental, and recreational and social programs such as Summer Camps. In many cases, members take advantage f these offerings based on just a deposit or with a monthly fee. When the balance of these payment plans goes unpaid, it can hurt the Y’s bottom line.

How a Debt Collection Agency Benefits YMCAs

Debt collection can be a touchy subject, especially for a non-profit organization that does so much good in its community, like the YMCA. However, it is a necessary process because if the Y provides too many services without the cash flow to back them up, they could fail and ultimately be of no use to the community at all. This is especially true for an organization providing many free programs for those in need. They cannot afford to carry people who can afford to pay but choose not to.

Turning outstanding accounts receivable that are 60 or 90 days past due to a debt collection company makes sense for YMCAs. These agencies have the professionals and the skill set to recover more money faster than the non-profits would ever be able to on their own. These debt collection professionals also know how to do it in an amicable and ethical way that will not violate local, state, or federal laws or cause undue stress on the member.

Conclusion

When done the right way, YMCAs using an experienced, ethical debt collection agency can be a win for all parties involved. The members can be treated with the respect and dignity they deserve and the YMCAs will not only receive the money they are owed so that they can continue offering all the essential community programs and services but also not alienate their members. This will allow the YMCA to function appropriately, stay financially healthy, and continue to meet the needs of their local community as the organization has been doing for more than 175 years.

Jewelers, just like any other business, can improve sales by offering financing options to customers. Costly items, such as engagement rings, luxury watches, and precious stones can be out of reach for many cash buyers. With branded in-house store credit, jewelers can turn more shoppers into buyers. While increased sales are a good thing for jewelers, unpaid accounts receivable can destroy the bottom line. Understanding collection options is essential for the successful use of store credit.

Need a Collection Agency for your Jewelry Store? Serving Nationwide. Contact us

Good debt collection practices begin at application

When extending credit, there is always a risk of nonpayment. Because of this risk, the best debt collection practice begins at the time credit is extended. Take the time at the beginning of the process to properly qualify buyers. Requiring a small deposit, such as $100 down, can help weed out less creditworthy buyers. It’s also important to check the buyer’s credit. When doing so, look for records of positive payments. If the applicant has delinquencies, ask for a detailed explanation. Have the applicant complete a simple cash flow showing income and expenses. If there is ample room to pay for the installments, the buyer probably is a good bet.

If properly qualified, you’ll also have crucial information to help with your collection efforts. Collect as much contact information as you can. Ask for credit references and personal references. You can contact the credit references at application to ensure their accounts were timely paid, and personal references give you a contact in the event that the customer fails to pay. One of the strongest collection tools is contact, so prepare now and be able to connect with your customer in good times and in bad.

Tools for jewelry stores

Also, consider automatic drafting for payments, so you don’t have to rely on a buyer sending payment each month. Other tips include offering incentives for early payment, such as a 5% discount or waiving the last installment. Store credit is a sales tool, but it also is part of building a solid customer relationship. Your buyer might have a temporary setback that impacts the ability to pay. Be mindful of this as part of a bigger relationship. Flexibility in payments can help ensure full payment in the future.

But, if a debtor cannot pay and refuses to engage in conversations about payment arrangements or incentives for full performance under the credit agreement, be prepared to exercise some of the collections options available to jewelers. For the most part, a jewelry store is just like any other creditor. You can formally demand payment, contact the debtor, and move to legal steps if the customer does not respond to demands

Most of your legal rights will be the same as any other creditor, with one key difference. Most consumer debt is considered unsecured, because a lien – such as a mortgage or a car title lien – is not involved in the transaction. However, in some circumstances, store credit accounts can retain a security interest (similar to a lien) in the item that is purchased with credit. This can become a powerful tool in the event of a bankruptcy proceeding. Instead of your debt is wiped away, the debtor may be required to return the jewelry to you in the event of nonpayment. It is important to ensure that you use the right language in your credit agreement to retain this protection.

Using a third-party collection agency

In most cases, collections can be more successful if handled by a third party. You have a jewelry business to run, and by handing the case to a professional collection agency, you can focus on growing your business while an experienced professional firm can engage in the type of investigation and contact necessary for successful collection.

Collection Agency Services Include

Collection Letters Service

The upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees and a low-cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of the money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls the debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

For more information on the benefits of hiring a third-party collection contact us.

The rent-to-own industry is one of the most unique business models in the country. The business is a part service industry, part retail, and part leasing company. On a given day, a Rent-to-Own business has to deal with all sorts of issues and challenges in order to keep the business up and running smoothly. Customers primarily lease furniture and appliances. One of the biggest problems in the industry is unpaid bills. 

Every Rent-to-Own company faces clients with unpaid bills all the time. There are multiple ways of dealing with this, and the Rent-to-Own industry even has special collections laws that apply only to this industry.

Need a Collection Agency for unpaid bills? Contact Us Serving Rent-to-Own Stores Nationwide

Most common AR issues are:

1. Delayed Payments: Some customers may not pay their monthly installments on time, either due to financial hardship, forgetfulness, or other reasons. This can lead to cash flow problems for the rent-to-own company.
2. Customer Default: In some cases, customers may cease payments altogether because they can no longer afford the payments or because they have decided not to continue with the rent-to-own agreement.
3. Disputes Over Product Quality or Service: If a customer is dissatisfied with the quality of the product or service received, they may withhold payment or seek to terminate the agreement.
4. Inadequate Customer Screening: Failing to properly assess a customer’s creditworthiness or ability to make payments over the long term can result in a higher likelihood of default.
5. Regulatory and Legal Challenges: Rent-to-own companies operate in a heavily regulated environment, and changes in laws or regulations can impact AR by affecting what can be charged, how collections can be pursued, etc.

No matter how you do it now, every Rent-to-Own company should consider working with a specialized debt collection agency that knows the ins and outs of the rent-to-own business. Here is why.

Dealing with Unpaid Bills 

Like any business, Rent-to-Own companies provide a service and goods to consumers, expecting them to pay as specified by the contract they enter into. When customers don’t pay, this can hurt the business’ bottom line and lead to problems. Companies with too much outstanding debt may lack the cash flow needed for day-to-day operating costs or long-term growth. This is the biggest problem facing the Rent-to-Own industry.

The industry does have some unique advantages that other businesses do not. The biggest advantage is that they own the goods until the end of the lease agreement. While this offers some protection, taking back goods is not ideal for multiple reasons, including the time it takes to resell and the possibility of being unable to sell it again. Collecting the debt owed is the best outcome, so working with a debt collection agency with experience in the Rent-to-Own industry is such a good idea.

Rent-to-Own stores offer Furniture, Appliances, Electronics and Computers on a lease. The timeframe of the rent-to-own agreement is usually 2-3 years. This may include TVs, couches, washers, smartphones, computers, dryers, engagement rings and motor vehicles. These stores are located nationwide.  Their prices are often higher because they include delivery, setup and other services many retailers don’t offer. Laws in many states allow rent-to-own companies to pursue criminal charges against customers who miss payments and do not return the rentals upon the company’s request. Unpaid bills or lease installments are a huge problem for the industry.

Knowing the Collection Laws 

One of the biggest reasons that working with a specialized Rent-to-Own industry debt collection agency makes so much sense is that they know the debt collection laws that are specific to the Rent-to-Own industry. And, not only do they know them, they know how to leverage them effectively and efficiently to get the best result.

Since the property involved in Rent-to-Own deals is still the property of the selling/ leasing company, debt collectors can be more aggressive in their pursuit of settling the debt in these situations. While it is against the Fair Debt Collection Practices Act to threaten criminal action in most debt collection cases, there are many states where Rent-to-Own debt collectors can use this tool as not returning Rent-to-Own merchandise can be pursued as theft.

Protecting Your Business Reputation

Because unpaid bills are such a big problem in the Rent-to-Own industry and collectors can use more aggressive tactics, many companies in the industry can get a reputation for being vicious debt collators. This reputation can go beyond just your collection department and seep into your core business. This can cause bigger problems down the line than just delinquent bills.

Separating your business from the act of collecting the debt is a good move for the health of your business. The debt collection company you choose can still pursue debts vigorously but will be acting independently from your core business. This will help insulate your business from negative reviews and other complaints while still allowing you to pursue debts with all the tools available to a Rent-to-Own business.

Conclusion 

 Debt collection and the Rent-to-Own industry go hand in hand. While many businesses handle it themselves, it makes more sense in many cases to use an experienced debt collection agency that knows the intricacies of the Rent-to-Own business. It will benefit the business and cost less in the long run, both in PR and real dollars.