Debt Recovery

The Simple Guide to Profitability

In dentistry, “business” does not always equal “profitability.” You can have a packed waiting room and still struggle with cash flow if your overhead is out of control. Calculating your overhead isn’t just an accounting chore—it’s taking the financial pulse of your practice.

The Basic Formula

To find your overhead percentage, use this simple calculation:

(Total Operating Expenses ÷ Total Collections) x 100 = Overhead %

Example: If your annual operating expenses are $700,000 and your total collections are $1,000,000, your overhead is 70%.

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Step 1: Categorize Your Expenses

To get an accurate number, group your costs into three main buckets:

1. Fixed Costs (The “Stay Open” Costs):
   These don’t change regardless of how many patients you see.

   • Rent/Mortgage

   • Utilities & Software Subscriptions

   • Insurance (Malpractice, Business)

   • Loan Payments

2. Variable Costs (The “Production” Costs):
   these fluctuate based on your volume.

   • Dental Supplies (Gloves, composite, impression material)

   • Laboratory Fees

3. Labor Costs (The Biggest Slice):

   • Staff Salaries & Benefits (Hygienists, Assistants, Front Desk)

   • Payroll Taxes

   • Note: Do not include the owner-dentist’s personal salary here.

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Step 2: Know the Benchmarks

Where does your practice stand? According to industry standards, here is the breakdown of a healthy practice:

• Total Overhead: 60% – 65% (The “Sweet Spot”)

• Staff Labor: 24% – 28%

• Dental Supplies: 5% – 6%

• Lab Fees: 8% – 10%

• Facility/Rent: 7% – 9%

The Red Flag: If your overhead is consistently above 75%, you aren’t running a business—you’re running a non-profit. It’s time to audit your supply waste or re-evaluate your scheduling efficiency.

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Step 3: Increase the “Gap”

You can improve your overhead in two ways: Cutting costs or Increasing production. * Audit your supplies: Are you over-ordering?

• Optimize the schedule: Are there gaps in the day where you are paying staff but not seeing patients?

• Review Lab Fees: Negotiate better rates with your primary lab partners.

The Bottom Line

Understanding your overhead turns you from a “worker in the practice” into an “owner of the business.” Track these numbers monthly to ensure that your hard work translates into the take-home pay you deserve.

If you are continuously looking for ways to set goals for your dental practice, your best bet could lie in your Dental AR benchmarks. Generally, when dentists discuss how to benchmark their practice, they will look at factors such as finding ways to reach new patient number goals. However, taking a look at your accounts receivable and delegating where your practice is having shortfalls will help in building a more profitable business structure.

Assigning dental accounts receivable (AR) benchmarks will help in not only growing a financially healthy business, but it will take off the weight that comes each time you sit down to pay the bills. And outlining methods in which your practice can meet these goals can only be done by laying out your current accounting situation and finding solutions.

Step 1: Set A 90-Day Goal

There is some debate on what the maximum age of your accounts receivable should be. Some believe only 20% of your AR should be over 60 days, while others suggest that you shouldn’t have any after a period of three months.

Falling in line with this strategy, you should at least set a benchmark for 90 days. That gives you three months to regulate your accounts receivable. At the end of those three months, your AR should, at the very minimum, make up 80% of your current patients’ payments. The other 20% can be made up of outstanding balances, but again, this number is pretty high. You can set your benchmarks for even better numbers depending on your current finances.

Step 2: Develop Sheets For Monthly Comparison

In relation to setting your dental AR benchmarks, it’s imperative that your monthly payment spreadsheets can be compared side by side. In other words, make sure you have your AR formatted so that you can compare January to February, February to March, and so on. At the top of each month, list your current AR followed by your goals. You should also have sections in these file dedicated to other contributors, such as the monthly number of credits, the amount or percentage of payments that are over 90 days, and the insurance estimation.

These sheets can also help highlight over the counter (OTC) collections which, as a general rule of thumb, should not exceed 45% of your office’s current production rate. In essence, a side-by-side spreadsheet of your AR will be immensely helpful if you are looking into news ways on how to benchmark your dental practice.

Step 3: Ensure Consistency in Payments

Besides automated computer filings, the spreadsheets like the ones mentioned above can help you see where there are inconsistencies in payments. Moreover, they will be able to easily indicate who is behind and by how much. These are the people you will need to reach out to first for payments (or risk sending them to collections). Then you can set a benchmark to determine the percentage of your collections so that you can make adjustments in processing payments.

In order to ensure consistency in payments, you need to have a strict regime about billing responsibilities. How often are reminders being sent out? Who is sending them out? Even with the trust in your team, it’s important to set standard operating procedures that indicate these responsibilities. You can implement a call log that references each time your office calls a patient for payment. This should be done for all email correspondences as well.

If your specific clientele is prone to missed payments, one way to help both them and your AR is to offer them a solution. It would be beneficial to accept credit partners like CareCredit from your patients to ensure your costs are being met at all times.

Step 4: Set Your Dental AR Benchmark at 1.0

This can be hard to master in a month-to-month benchmark goal. Having a dental AR benchmark at 1.0 can be difficult, but definitely not impossible. At this rate of performance, your production will be on par with your AR. In other words, if you’re producing $50,000 worth of production in your dental office in July, then your accounts receivable in July should reflect the same number.

In order to get to this benchmark, it’s important to follow the aforementioned procedures. But, like most financial hiccups, these things take time to remedy. If your AR is nowhere near this number, you should take your most recent AR numbers and use them to reflect in a year from now.

That’s right; you can take a full year in order to balance out your finances. But at the end of the year, if your dental AR benchmark isn’t met at the recommended 1.0, you may have bigger problems. However, a year will give you enough time to determine how much your collection rate is after taking out yearly production adjustments (i.e. charity or discounted procedures).

Step 5: Reduce Your Billing

And on top of everything, another benchmark that you should implement for your accounts receivable is a reduction in your billing process. And while you still need a regime for reaching out to patients for payment, this should be done in moderation.

Billing is radically overpriced; a single statement can cost anywhere from $5 to $10. Multiply that by the number of patients in your AR, and you have another hefty bill to deal with. And unfortunately, billing is a service all dentists need in order to run their business.

To cut back on costs, set a benchmark on how often you will bill your patients. By the end of the year, cut that number in half. You will want to send out bills well before the 90-day benchmark, and you can always send emails as an additional reminder. Whatever the case may be, a reduction in your billing will help ensure that your production and AR balance each other out by the end of the year.

If you need collections assistance in order to set benchmarks for your dental practice, contact us, we will ensure that your dental AR benchmarks will get easier by the year. We will assist you in reducing your accounts receivable by collecting money from unpaid bills, thereby improving your cash flow.

• Are you interested in hiring an easy to use collection agency with extensive experience in recovering dues for credit unions of all sizes?

• A collection agency that adheres to the same stringent data security standards required by banks and credit unions (GLBA compliance), ensuring your customer data remains secure and your organization stays compliant with all federal and state laws.

• Have you implemented a consistent and effective collection process? We understand how to maximize recovery, and in case you are short staffed we can perform low cost fixed fee service by sending low-cost reminder notices to your customers on your behalf.

Credit unions now manage trillions in assets and a large, diverse loan book: auto, cards, HELOCs, personal loans, indirect paper, and small-business credit. With that growth has come:

• More loans rolling into 60/90+ days past due

• Higher net charge-off ratios than in the low-rate years

• Rising delinquencies in auto and unsecured portfolios

• Heavier exam focus on credit risk and third-party oversight

Inside many credit unions, a small team is juggling early-stage calls, repossessions, charge-offs, legal files, bankruptcies, and member service. It’s easy for late-stage, lower-priority accounts to fall through the cracks simply because there aren’t enough hours in the day.

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AR Pain Points Credit Unions Struggle With

A few issues come up again and again when we talk to credit unions:

• Thin internal collections staff – A handful of collectors handling everything from reminder calls to legal files.

• Complex relationships – Co-borrowers, cross-collateralized loans, indirect portfolios, and members with multiple products.

• Overdrafts and fee-driven balances – Small but noisy accounts that can generate complaints and bad reviews.

• Reputation risk – One harsh collection experience can undo years of member goodwill and word-of-mouth.

• Compliance pressure – Examiners expect documented processes, secure data handling, and controlled use of third-party vendors.

These are the reasons many credit unions decide to keep early-stage work in-house, and push tougher, late-stage or charged-off accounts to a specialized agency that understands their environment.

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What a Good Credit Union Collection Partner Looks Like

When you send accounts to an outside firm, you’re not just outsourcing phone calls—you’re trusting them with member relationships. You should expect:

• Bank-level security and privacy (GLBA mindset, secure file exchange, access controls).

• Strong regulatory alignment with FDCPA, FCRA, Reg F, TCPA, and state rules.

• Member-friendly tone – firm but respectful, aligned with your brand and culture.

• Omnichannel outreach – letters, calls, email, text (where allowed), with proper consent.

• Actionable reporting – recovery by product, delinquency bucket, and campaign, so you can show results to leadership and examiners.

A good partner feels like an extension of your AR team, not a black box you hope is doing the right thing.

Serving Credit Unions Nationwide Need a Collection Agency? Contact Us High Recovery rate. Referrals of existing Credit Union clients can be provided if requested.

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Internal Moves That Lower Delinquencies

External collections work best on top of solid internal practices. High-performing credit unions usually:

• Monitor portfolios frequently, not just at month-end

• Reach out early at 15–29 days past due

• Offer realistic, time-bound workout options for short-term hardship

• Educate members about autopay, due dates, and the impact of missed payments

• Segment high-risk groups (indirect auto, higher-risk tiers, repeat delinquents) and decide earlier when to move them to third-party collections

Your collection partner can help refine these strategies so you’re not relying on manual lists, scattered notes, and overloaded staff.

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How a Specialized Agency Works With Your Credit Union

For late-stage and charged-off accounts, a credit-union-savvy agency can:

• Take over outbound campaigns on older auto, card, and unsecured loans

• Handle repossession deficiencies, judgments, and post-charge-off recovery

• Use skip-tracing and other tools within legal limits to locate harder-to-reach members

• Recommend legal action only when it makes economic sense and fits your risk appetite

The tone matters: the goal is to recover what’s owed, explore realistic arrangements where possible, and avoid burning bridges with members you may want to keep in the long run.

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Credit Union Collection Services

Collection Letters Service

• Upfront cost for 5 Collection Letters is about $15 per account.

• Members pay you directly; there are no additional collection fees on these accounts.

• Works best for newer delinquencies (typically under 120 days past due) where a formal third-party letter often gets attention and cures the balance.

Collection Calls Service

• Contingency fee only – you pay a percentage of what’s collected.

• If there’s no recovery, there are no collection fees.

• Best for accounts over 120 days past due, broken promises, repeat delinquents, and charged-off balances that your team doesn’t have time to chase.

• When the balance and circumstances justify it, legal action can be considered through a network attorney, with your approval.

This combination of low-cost letter campaigns plus contingency-based calling helps many credit unions:

• Increase recovery on older loans and overdraft balances

• Lower net charge-offs

• Reduce internal workload on “slow-pay” and skipped accounts

• Protect their community reputation while still enforcing the credit agreement

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The Bottom Line

Credit unions are facing more credit stress, more scrutiny, and higher expectations from members—all at the same time. You can’t afford to ignore delinquent loans, but you also can’t afford to handle them in a way that damages trust.

A well-chosen, compliant collection partner that understands the credit union world helps you protect your loan portfolio, present stronger numbers to your board and examiners, and preserve the human, member-first culture that makes your credit union different in the first place.

If you’re tired of email chains, spreadsheets, and “can you send an update?” follow-ups, a self-service client portal fixes the biggest problem in debt recovery: lack of real-time visibility.

With NexaCollect’s self-service collection portal, your team can place accounts, review activity, pull reports, and manage recalls/holds—without waiting on someone to respond.

Best for: CFOs, Controllers, AR Managers, Revenue Cycle teams, and owners who want speed, documentation, and accountability.

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What a “Self-Service Collection Agency” Really Means

“Self-service” doesn’t mean you do the collections yourself.

It means you control and monitor the process through a secure portal:

• You upload and manage placements

• You can recall, pause, or update accounts when needed

• You see activity notes and status changes as they happen

• You can export reports for leadership, audits, or month-end close

In short: collections are still handled by the agency—your team simply gets control and transparency.

Need a Collection Agency? Contact us

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Why This Matters in 2026 (Speed + Visibility Wins)

AR teams today are expected to do more with fewer people. The portal removes friction by making common actions instant:

• No delays placing accounts

• No waiting for a “status update”

• No missing documentation during disputes

• No messy reporting at month end

And when you’re moving fast, you also need to stay safe. Data security is no longer “nice to have.” IBM’s 2024 report put the average cost of a data breach at $4.88M—which is exactly why debtor data should never live in random spreadsheets and unsecured email threads.

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What You Can Do Inside the Portal

Below is what most clients use daily—organized the way AR teams actually work.

Place & Manage Accounts

• Bulk upload accounts using a spreadsheet (fast placements in volume)

• Add single accounts one-by-one when needed

• Upload supporting documents (contracts, invoices, statements, itemized billing, etc.)

• Edit key account data (balance, contact info, notes, employer/business info where applicable)

• Add special instructions (do-not-call windows, preferred contact channel, escalation notes)

Track Recovery Activity (Without Chasing Updates)

• See account status changes (new, in progress, resolved, disputed, closed)

• Review collector notes and action logs

• Monitor payments, promises-to-pay, and settlement activity

• Check if outreach attempts were made and outcomes recorded

Pause, Recall, or Update Accounts
Real AR is messy. Customers pay late, dispute, change addresses, or negotiate directly with you. The portal lets you act immediately:

• Pause/hold an account (temporary stop)

• Recall an account (permanent pullback)

• Mark as paid, settled internally, bankrupt, deceased, business closed, etc.

• Provide dispute documentation quickly to speed resolution

Reporting & Exports

• Download recovery summaries for leadership

• Export placement lists and status reports for month-end close

• Track recovery performance by date range, bucket, or client group

• Maintain documentation for internal controls and compliance reviews

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The Security & Compliance Checklist You Should Demand

If you’re sending accounts to any partner, your minimum standard should include:

• Role-based access (only the right team members can view actions/data)

• Audit trails (who did what, and when)

• Encryption in transit and at rest

• Multi-factor authentication (MFA) support

• Secure document storage (no “email attachments” as the system of record)

• Policy-driven data handling aligned with regulatory expectations

This matters because the financial impact of poor security is massive—again, IBM’s 2024 benchmark placed breach costs at $4.88M on average.

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How the Process Works (3 Simple Steps)

Step 1: Upload & Validate
Upload accounts (single or bulk). Include balances, contact details, and supporting documents if applicable.

Step 2: Collections Begin With the Right Approach
Our outreach is designed to recover funds without damaging your reputation—starting professional and escalating only when needed.

Step 3: Track, Manage, and Report
Your team monitors statuses, notes, payments, and outcomes in one place. You can pause/recall anytime, and export reports whenever leadership asks.

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Who Uses This Portal (And Why)

CFOs / Controllers
Want predictable reporting, clean documentation, and less operational noise.

AR Managers
Need speed, visibility, and the ability to act instantly without delays.

Revenue Cycle / Medical Billing Teams
Need disciplined follow-up, strong documentation handling, and dispute workflows.

Owners / Operators
Want collections handled professionally while keeping full transparency.

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Common Questions (FAQ)

Can I upload accounts in bulk?
Yes. Bulk upload is one of the most used features for high-volume placements.

Can I recall or pause an account anytime?
Yes. If a customer pays you directly or a dispute comes in, you can pause/hold or recall the account.

Will I be able to see what’s happening on each account?
Yes. Status changes and activity notes give you ongoing visibility without chasing updates.

Can I export reports for my leadership team?
Yes. Exports help with month-end close, performance reviews, and internal reporting.

Is online payment available for debtors?
If enabled in your program, online payment options can help reduce friction and speed resolution.

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What Makes a Good Self-Service Collection Portal (Quick Checklist)

If you’re comparing options, use this list:

• Fast bulk placements

• Easy holds/recalls

• Clean audit trails + notes

• Reporting exports that match how finance teams work

• Real security controls (not “email and spreadsheets”)

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Ready to Try the Portal?

If you want a faster, cleaner way to place accounts and track recovery, we’ll walk you through the portal and show how it fits your workflow.

Contact NexaCollect for a complimentary consultation

Electricians & HVAC contractors: stop letting unpaid jobs fry your cash flow

If you run an electrical or HVAC business, your world is full of numbers:

• Service calls in the $250–$600 range

• Panel upgrades and EV chargers at $1,000–$2,500+

• HVAC change-outs and commercial jobs in the $4,000–$20,000+ range

Now add another number: how much of that is 60–90 days past due?

In a typical year, even losing a few jobs each month—say $8,000–$15,000 in unpaid invoices—can quietly drain $100,000+ from a busy contractor.

If you’re doing good work but still chasing money, the problem usually isn’t your trade skills. It’s the way your A/R and collections are set up.

Your debtors are likely be getting chased by several creditors like you, and their financial situation is likely deteriorating with every passing day.  

Serving HVAC/Air Conditioning/Electrical Businesses Nationwide Need a collection agency? Contact us High recovery rates – Low cost – Easy to use

 

Why electrical and HVAC invoices go bad

On paper, it’s simple: estimate, work, invoice, payment. In real life, a few patterns wreck your cash flow.

Residential and light commercial

• Emergency work, no deposit
  Power is out or the A/C is dead. You fix it first and worry about payment later. Once the crisis is over, urgency disappears—for the customer.

• Insurance and warranty confusion
  After storms, surges, or equipment failures, customers assume, “Insurance or warranty will cover it.” When deductibles or exclusions appear, they stall or vanish.

• Landlord–tenant tug-of-war
  Tenants want it fixed. Landlords argue it’s tenant damage. Meanwhile, your invoice sits.

• Extras without signatures
  Extra lights, upgraded fixtures, larger HVAC units—approved verbally on site, never written down. When the higher bill arrives, people act surprised.

Construction and GC work

• “Paid when paid” contracts
  You’re the sub. The GC says they’ll pay when the owner pays. That can easily stretch to 90+ days.

• Retainage and punch lists
  Five to ten percent of every draw is held until “final completion,” which might be months after your electrical or HVAC work is done.

• Slow-pay habits
  Some GCs and property owners simply use subs as interest-free credit. If you don’t push, you’ll always be last in line.

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Simple A/R habits that protect your trade business

Before bringing in a collection agency, tighten the basics. Small changes can save big money.

1. Make payment terms part of every job

• Put clear terms and due dates on every quote and work order.

• For bigger tickets (panel upgrades, full HVAC systems), collect deposits.

• Spell out what happens if invoices go unpaid: late fees, collections, possible lien rights (where applicable).

2. Invoice fast and consistently

• For service work, invoice same day or within 24–48 hours.

• For project work, bill at each milestone instead of waiting weeks.

The longer you wait to bill, the easier it is for customers to delay or dispute.

3. Get extras in writing

• Turn “Can you add two more vents / lights?” into a quick signed change order or digital approval.

• Clear paperwork cuts off most “I didn’t agree to that” arguments later.

If someone ignores you through that entire sequence, they’re not just “busy.” They’re a risk account.

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Liens and bond claims: quiet leverage for electricians & HVAC

You don’t need to become a lawyer, but you should understand your basic tools on projects.

Mechanic’s liens (private projects)

On many private jobs, both electricians and HVAC contractors can:

• Record a mechanic’s lien against the property if not paid

• Make it harder for owners to sell or refinance without dealing with your invoice

Key ideas:

• Most states require preliminary notices and strict deadlines.

• If you miss those dates or file incorrectly, your lien rights may be gone.

Used correctly—and professionally—lien rights can turn a “we’ll pay you later” into a serious conversation.

Bond claims (public projects)

On public work, you usually can’t lien the property, but you can often:

• Make a claim on the prime contractor’s payment bond when you’re unpaid

Again, the rules are technical, but knowing this option exists makes you much harder to ignore.

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When it’s time for a trade-focused collection agency

At some point, chasing money stops being customer service and starts being unpaid office labor.

Common cutoffs many contractors adopt:

• Residential / small commercial:
  If an invoice is 60–90 days past due after multiple reminders, it’s a collection candidate.

• Construction / GC work:
  If you’re nearing lien or bond deadlines with no progress, escalate—legal options, collections, or both.

An electrician & HVAC collection agency is different from a generic shop because it understands:

• Bids, change orders, retainage, and punch lists

• The language of GCs, property managers, and facility directors

• How to be firm without wrecking long-term relationships

Their job is not to scream on the phone; it’s to turn stalled invoices into realistic payment plans or lump-sum settlements while protecting your brand.

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FAQs: collections for electrical and HVAC contractors

How long should I wait before sending an invoice to collections?
For most service and small commercial jobs, once an invoice is 60–90 days overdue and reminders haven’t worked, it’s reasonable to send it to collections. Past 120 days, your recovery odds drop sharply.

Will using a collection agency hurt my reputation with GCs and customers?
Handled poorly, yes. Handled well, no. A professional, trade-savvy agency uses respectful, businesslike communication and payment options. Often, it simply shows that your company treats debt like a serious business issue, not an afterthought.

What should I give a collection agency for an electrical or HVAC invoice?
Provide:

• Signed quotes or work orders

• Invoices and statements

• Change orders

• Proof of completion (photos, inspection approvals, job tickets)

Good documentation is your best friend.

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How Nexa helps electricians and HVAC contractors get paid

If your electrical or HVAC business is always busy but never truly caught up on cash, your collection strategy needs a tune-up.

Nexa is an information portal that helps businesses—including trades like electricians and HVAC contractors—find suitable collection agencies.

• We are not a collection agency ourselves and we don’t collect money from your customers.

• We learn about your job sizes, customer mix, and A/R pain points.

• We then share your collection requirements with carefully shortlisted agencies we believe fit your situation.

• It’s entirely your choice whether or not to work with them.

If you’re tired of wiring panels, installing systems, and fixing emergencies only to chase the money for months, it’s time to change the way you handle overdue accounts.

You keep the power and air flowing. Let the right collection partner help you turn more of that hard work into collected cash.

 

Credit reporting should not be used as a revenge tool or a threat; it is against the debt collection laws. But a creditor whose account becomes seriously past due has the legal right to report the account to Credit Bureaus if he has adequate proof regarding the authenticity of the debt. The top three Credit Bureaus of the USA are Equifax, Transunion and Experian.

Most small businesses do not do Credit reporting themself. When the account is 30 days or more past due, they forward the account to a debt collection agency.

A Collection Agency can report the account to Credit Bureaus after their debt collection efforts have failed and the original creditor wishes to report this delinquency on the debtor’s Credit History report. This entry can stay on the debtor’s credit report for up to 7 years.

There are several laws around Credit Bureau Reporting since it adversely impacts the credit history of debtors or patients. According to the Fair Credit Reporting Act (FCRA), all accounts reported after September 15, 2017, should have Full Name, Address, Full SSN and Full Date of birth. Since collection agencies use skip-tracing services and may also have access to debtor credit reports, they can usually find one or more missing information by reverse lookup using the Debtor’s SSN. For example – if the debtor’s DOB is missing, then a collection agency can find it using the debtor’s SSN.

Although Credit Reporting is a powerful tool, it should be used judiciously. A debtor has his own consumer rights. If an entry has been reported incorrectly to the Credit Bureaus, the debtor can dispute it. In extreme cases, the debtor may even file a lawsuit if corrective actions are not taken on time. If the creditor cannot verify any information, the consumer reporting agency is responsible for removing it. It is better to continue working with the debtor to recover the money than to instruct the collection agency to report the matter to Credit Bureaus at the earliest opportunity.

Benefits of Credit Reporting

Reporting a  debt to Credit Bureaus has some benefits.

1. It indicates to the debtor that you are serious about recovering your money.

2. If you sue the debtor in court, your attorney can tell the judge that despite all efforts, like making calls and credit reporting, the debtor has not paid. Your case can potentially become stronger.

3. Since millions of Americans check their free credit report annually on annualcreditreport.com, it reduces the chances of mistakes and fraud if there has been a credit reporting error by the original creditor or the collections agency. These issues require immediate attention and must be rectified promptly.

4. If a consumer is aware that you do not hesitate to report genuine cases of unpaid bills to Credit Bureaus, it will reduce the occurrence of late payments and defaults.

5. Not just the bad debts, if you report debts paid in time (like car loans, credit card loans, etc), then it motivates the client to make payments promptly because it helps them to establish good credit.

6. Debtors can sometimes agree to pay in exchange for the entry to be removed from his credit history report. However, this approach is not recommended.

Opening an account with a credit bureau has other benefits too. It allows original creditors to check the credit ratings of their prospective clients and for the collection agencies, it helps to compute the probability of getting paid.

Disadvantages of Credit Reporting

1. Once an account has been reported, the debtor’s worst nightmare has come true. He thinks, “Now what? Or What worse can happen?“. The debtor loses the fear as the worse that could have happened to his credit history report has already happened. Credit Bureau reporting as a negotiating tool is off the table now.

2. Incorrect reporting ( incorrect amount or other mistakes ) can have legal repercussions. Not many, but a few debtors may sue back the creditor or the collection agency for damages.

3. Medical debts, once paid off, should be removed from the credit report. This creates more work for the collection agency.

Responsibilities of Original Creditors towards their Collection Agency:
– Inform your collection agency of any payments received promptly
– Inform of any disputes or bankruptcies immediately
– Provide substantiation of all debts assigned at the time of placement or as requested
– Always accurately report the balance and the status of the account

If you are looking for a debt collection agency that can work on your accounts receivable in a cost-effective way; even report your unpaid accounts to credit bureaus if you request them, Contact Us