Debt Recovery

More than 70% of U.S. college graduates take student loans, and unfortunately, a large percentage of these loans go into default. Among them, medical student loans are the most tricky to collect as compared to other types of student loans because they carry higher balances.

Inability to collect the remaining installments even on a few medical student loans results in a loss of hundreds of thousands for the lender. Lenders of private student loans are primarily banks, credit unions and specialized lenders.

Unlike other loans, student loan obligations do not go away even if the borrower files for bankruptcy. A private student loan is considered to be in default after 3 consecutive non-payments (and nine months for loans originating from the U.S. Department of Education or DOE). Even with a court order, the maximum wage garnishment for private student loans can be only up to 25% of disposable pay in most states. Private lenders have lesser options to recover student loans versus loans originating from DOE. DOE has the capacity to target Tax Refunds and other Federal Benefit offsets which private lenders don’t.

Once the account is in default, student loan debt is due immediately, this is called the “acceleration processes“.

After a default, the account is usually forwarded to a student loan collection agency without wasting more time. The recovery rate of student loans is generally not too great. Therefore it is important to forward accounts to a loan collection agency with extensive experience in handling medical student loans. For the federal student loans, a debt collector gets paid nearly $1,700 per borrower who rehabilitates their debt. For private loans (originating from banks and credit unions), collection agencies work on a contingency basis, charging a fee between 20% to 40% depending on how old the debt is and the outstanding loan amount.

Private debt collection agencies use a diplomatic and empathetic approach to collect student loan debt. They must work with consumers to find a solution and offer them multiple repayment options to prevent further falling into the debt trap. Debt collection agencies can contact the cosigner of the student loan if the primary person is unable to pay the debt.

Private student loans are subject to a statute of limitations that may range from 3 to 15 years, depending on the borrower’s state of residence. Federal student loans are not subject to a statute of limitations. This is one of the main reasons why there is such an urgency to collect the student loans issued by a private financial institution.

Repayment plans can last for many years; therefore, there is always a chance that the borrower who rehabilitates their debt, may once again go in default a few years later. After the loan is rehabilitated, the lender may remove the default from the borrower’s credit history as a part of the settlement agreement.

Collection agencies are required to follow the FDCPA rules. The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits the behavior and actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity.

If you are looking for a medical student loan collection agency: contact us

Mobile phone repair market is valued over 4 billion dollars and employs over 20,000 people in USA, growing about 3% every year. Approximately one out of every four smartphone users crack their screen. Once the phone is out of warranty or has no insurance, people often turn to 3rd party repair shops who provide cheaper service than the authorized service centers.

Although equipped with hi-tech technology and a glass touch screen, still the smartphone’s outer body is not all that robust, making it prone to cracks and water damage. Apart from screen replacement and repair services, nearly all smartphone repair shops also sell smartphone accessories like screen protectors and smartphone cases. In USA, iPhone and Samsung are the two most popular brands.

All mobile phone repair shops demand upfront payment of the work done on the device. However many customers are unable to fully pay the high cost of repairs done and opt for a payment plan in the form of installments. Many customers default on these payments. This can result in a loss of hundreds of dollars for the business owner. A typical owner has very limited options, all he can do is making a few reminder calls and re-sending invoice.

If the payment has been due for over 60-90 days, it is better to have a collection agency take care of recovering your past-due payment. Although a Collection Agency will take a cut/fee on the amount recovered, it is far better to get at least 60% of the recovered money back rather than writing it off as a 100% loss.

Collection agencies require business-owners to have copy of invoices or contract that was signed with the customer when the work was performed.

Every year billions of dollars of amount is written off, a significant portion of which could have been recovered if it was assigned to a debt collection agency in a timely manner. 

US technology, computer, mobile and service industry is biggest in the world, spanning across product development, networking, consulting, hardware, refurbish & repair, AI, data mining, and the list goes on. Then there are thousands of small to mid-size computer services, mobile & hardware repair centers, cloud and data security services. Millions of Americans are employed in the technology sector.

Even though the issue of accounts receivable in the technology industry is relatively lower than other types of businesses, it is big enough to impact the profit margins of any company. Small business owners who are involved in computer service, mobile repair, virus removal, data backup, restoration and mobile & hardware repair ( like Micro Center, Geek Squad, and laptop/mobile repair franchises like Computer Doctor, CPR, Cellairis and Fast-Teks) often experience a higher number of unpaid bills.

Folks associated with the technology industry are not the best people to recover money on past due accounts. When sending repeated invoices and reminder calls do not work for the first 60-90 days, it’s time to transfer such accounts to a good Debt Collection Agency. An experienced collection agency understands the delicate nature of a technology company and its customers. The collection needs to be done in a diplomatic, polite and emphatic manner.

One of the very well-known facts about debt collections is that the moment a debtor receives a collection reminder in the name of a Collection Agency, their attitude changes. Just like when a person speeding his car over the limit sees a cop car standing at a distance, he will suddenly slow down and attempt to follow the rules.

Debtors are likely to pay off because they know that Collection Agencies are experts in collecting debt, and they will employ every possible legal measure to recover the money.

Collection Letters Service

The 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 the 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.

Collection agencies offer three types of services. Collection Letters service is a low cost fixed fees service and for accounts over 120 days past due, we recommend using the contingency-based Collection Calls and Legal Suit services. Normally the Legal Suit service is not a readily available option, a collection agency will recommend after talking to an attorney once all other measures have exhausted.

Instead of writing off the debt, the smart way is to let those people handle your accounts receivable who recover debt every day for various clients. They have many ideas and tricks to make sure the debtor pays if he can.

Mobile repair centers face increasing credit card dispute charges for the work done on cracked screens of popular brands like iPhone, Samsung. etc. Therefore it is crucial to get a written contract signed by the customer before starting the work.

Collection agencies are also able to perform collections in the Spanish language if needed.

Need a Collection Agency?
Has your Collection Agency Closed or Shut Down and need a new one to recover your unpaid bills?

Based on our personal opinion, a mid-sized collection agency is able to provide better individual attention, recovery rates and service. We are not a collection agency, but based on our 18 years of extensive experience in this industry, we have carefully shortlisted a few collection agencies based on their performance, low contingency rates and experience of the management/staff.

Cost of various collection agencies in USA does not vary much, but their recovery rates do. A good agency should be insured, licensed in all 50 states and should handle the personal data of your debtors with utmost safety and security.

Kindly fill the form below so that we can connect you to a good one based on your requirement at no extra cost to you.  The last field on the form “Additional Information” is optional, but kindly use it to tell us a bit more about your business, who are these debtors and which billing software do you use. We only recommend those collection agencies which have 100% USA based operations, offer a secure online customer portal will possess experience in your industry.

Tell us your collection requirements:

Your Name (required) Your Email (required) Your Phone (required) Accounts needed per year (required) —Please choose an option—1000+500-1000100-50050-10020-5010-205-10Less than 5 Approximate debt per account (required) —Please choose an option—Under $100$100-$500$500-$1000$1,000-$5,000$5,000-$10,000$10,000-$50,000More than $50,000 What is your Industry (required) —Please choose an option—MedicalDentalEducationEnergyFinanceAutomotiveGovernmentConstructionLegalTechnologyUtilityOther Type of service needed (select all those which apply) Collection LettersCollections CallsI am not sure Type of Debtors (select all those which apply) Consumer Debtors (B2C)Commercial Debtors (B2B) Debtors Speak which Language (select all those which apply) EnglishSpanish Average Age of these Accounts (required) 1-3 months3-6 months6-9 months9-12 months1-2 yearsMore than 2 years Best time to contact you (US Eastern Time). (select all those which apply) Morning (9AM-11AM)Afternoon (11AM-2PM)Evening (2PM-5PM EST) Additional information or Message (optional, but recommended) Please prove you are human by selecting the key.

Nexa has assisted several businesses, institutions and medical professionals to effectively recover money from their past due accounts.  If you have any questions contact us at support@nexacollect.com or Call us toll free at 1-844-Nexa-123

Waste management, disposal, and recycling companies extensively use Debt Collection Agencies to recover money from their aging accounts receivable. All these unpaid bills are typically transferred for B2B or B2C collections after 90 days of non-payment. B2C collections are also called “Consumer/Individual” collections and B2B falls under “Commercial/Business” collections. There is a substantial difference in debt collection strategy and the laws applicable to each type of collection.

The waste management industry constantly faces several business challenges. These include recruiting skilled employees, waste collection, sorting, adherence to laws, overcoming poor-quality recyclables and intensive safety compliance. Non-payment of money from customers/clients/vendors is a major concern and requires well-planned collection efforts to recover bills and maintain a good cash flow for your business.

Their in-house staff is poorly skilled in recovering money from past-due accounts as compared to professional Collection Agencies.

Serving Waste Management Companies Nationwide Need a Collection Agency? Contact Us

Collection Agencies follow the three-step recovery process, advanced skip tracing tools, profiling and risk analysis. All these steps ensure maximum return while attempting to preserve your relationship with the debtor.

A collection agency should be well equipped with multilingual staff, experienced collectors, a track record of high collection rates, pan-American presence and the ability to perform both B2B & B2C collections. Their staff should be constantly trained on debt collection laws. All these should be a part of your selection criteria.

Before you assign accounts to a collection agency, review these steps:

1. There is no mismatch between the services rendered and the services billed. For instance, if a customer requested extra pick-ups or a particular type of waste disposal, but these are not accurately reflected on the bill.
2. One of the most common billing issues is incorrect rates being applied to customers’ bills. This could be a result of manual entry errors, miscommunication, or outdated rate information in the billing system.

A good collection agency should be able to work as an extension to your accounts department, so while your staff focuses on expanding business, a Collection Agency should work hard to keep your overdue accounts receivable to a minimum.

Matching a collection agency’s low cost and recovery rate is nearly impossible. Contact us if you need one.

Extending credit is a way to give a few extra days/weeks to your clients to make payment after the service has been provided or a product is delivered. Everyone likes to get paid right away, but for small businesses, this is often a necessity.

The next big challenge is what to do if the payment has not been released by the client after the due date. Should you impose Late Fees, Interest Charges, something similar to what credit card companies do.

FEAR: Late fine may aggravate the client, potentially resulting in loss of business is the greatest fear. Late fees must be implemented with proper care and planning.

Imposing a late fine is a legitimate approach; it is a powerful way to show you mean business. It imposes a small well deserved fine for being irresponsible or not keeping their promise to pay on time. After all, money does not come for free. If you were to take a loan from your bank, they would have charged interest on it. Similarly, if you have a Credit Card and do not pay on time, they charge a Late Fee after the due date.

There are several genuine benefits of imposing late fees

1. Late Fees is a Fairly Standard Policy in Contracts

Having a proper well-written credit policy in place enhances the reputation of your business because it indicates that the commitment to making timely payments must be taken quite seriously. When the contract is signed initially no one anticipates that there will be occurrences when the payment is overdue. This is the best time to slip in your Late Fees in your credit policy. Late Fee is a minor clause when business contracts are being signed, and is a universally accepted procedure.

However, if it not included during the initial signing of the contract, it is nearly impossible to slip in your credit policy later. For Example: If your credit card company includes a Late Fees clause in their contract, you are already prepared for it.

2. Get Paid on time

Everyone hates paying late fees. It pressurizes your customer to make a payment on time. They will mark the payment due date on their calendars, and try their best to avoid paying any late fees.

3. Be the first to get paid

If your client has to make payments to several businesses like yours, whose bill do you think they will clear first – The one who charges late fees OR the one who does not?

If your client is struggling with making promised payments, you never know how bad their current financial is now and how much worse it can get soon. It is better to be in front of the line.

4. Late fee is well-deserved compensation

Once payment is not made on time, your staff has to take additional measures to recover money. This could be in the form of reminder calls or sending invoices again. Extra work by your staff means additional expense for you.

You are simply charging the client for the extra effort and cost that you have to incur to recover your money. Any extra time spent by your staff is overhead, this time could have been utilized in a more productive way.

5. Waiving off Late Fee has benefits too

If a client is unhappy that you have imposed late fees, it is completely fine to waive it off a few times. You are doing a favor on the client, which he will remember and will take it very positively. Next time he will remember the due date, to avoid the shame of asking you again for the waiver of late fees.

Won’t you feel very positive about a credit card company that waives off late fees after listening to your genuine explanation?

6. Every bit counts

Late fees can improve your cash flow, bottom line and profitability. This also reduces your number of overdue accounts receivable.

7. It puts a number out there

If you have a late fee policy in your contract, it clarifies your expectation. The client would exactly know how much extra money they need to allocate to cover the late fees. You may not even have to talk to them about it. Maybe the client does not have any cash flow problem, and they just forgot to make the payment on time because their account was out on vacation.

So look beyond just the core late fees aspect, there are so many other business benefits of it.

Additionally, add to your contract that if a payment is over 90 days overdue the account can be forwarded to a Collections Agency.

Check with your attorney before setting your late fees. Rules and regulations around these change from state to state.