Debt Recovery

We have published two collection letters for medical and dental practices. However, this is a fairly generic format and can be referenced for small business debt collections as well.

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Give your debtor one last chance?
Send a final letter, give 15 more days to settle before involving a collection agency. Mention your intention clearly in this letter.

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A final letter + invoice from “Dr. William Joe” to his patient “John Doe”
( Assuming that 45 days have passed since the payment was due.)

From,
Dr William Joe,
123 Main Street,
Katy, TX, 44920

Phone: (777) 123-4567
Fax # (777) 123-4568

Email: accounts@drwilliamjoekatytexas.com
Website: www.drwilliamjoekatytexas.com

Date: 01/01/2019
JOHN DOE
872 CONVAY STREET,
LAS VEGAS, NV, 89408

Dear John Doe,

We are disappointed that we have not received payment from you regarding your past due balance. Your account is in serious jeopardy of being reassigned to an outside collection agency. In order to prevent your account from further action or to prevent negative marks to your credit history, please make payment within 15 days by check, cash, western union or credit card.

If your payment is already on its way, we thank you and ask that you please disregard this notice. If you are unable to make payment in full due to financial difficulties, we encourage you to discuss a reasonable payment plan so you can satisfy your obligation and keep your account in good standing. Please do not hesitate to call patient accounts at (777) 123-4567. We are also attaching an invoice of $2500 for the treatment you had received.

Reference Number: 12ABC678
Principal Amount: $2,300
Interest Amount: $100
Total Debt: $2,400

Sincerely,

Patient Accounts
Dr. WILLIAM JOE

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Still not getting paid (after 15 days)?
Transfer this account to a collection agency without delay.
A sample Debt Collection Agency’s letter is published below.

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Sample Debt Collection Letter from “XYZ COLLECTION AGENCY ” to the patient “JOHN DOE” on behalf of “Dr. WILLIAM JOE”

Dear JOHN DOE,

ABC CLIENT has asked us to contact you regarding your account. Their records show that you owe $2,500.00.

Please send a payment of $2,500 for ABC CLIENT using the bottom portion of this letter or contact them at (777) 123-4567 to make payment arrangements that are satisfactory with our office.

Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt, or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days from receiving this notice that you dispute the validity of this debt, or any portion thereof, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

Thanks for your cooperation.

THIS COMMUNICATION IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE.

Sincerely, XYZ COLLECTION AGENCY, INC.
1111 KIRSTEN STREET, ROHNERT PARK, CA, 94928

Our business hours are Monday through Friday, 8:00 am through 9:00 pm Pacific Standard Time and on Saturday from 8:00 am through 2:00 pm Pacific Standard Time.

NOTICE: PLEASE SEE REVERSE SIDE FOR IMPORTANT INFORMATION
Calls inbound and outbound may be recorded and monitored

Date of Service: 01/01/2019
Reference Number: 12ABC678
Patient’s Name: MARY DOE
Name of Provider: Dr. WILLIAM JOE
Principal Amount: $2,300
Interest Amount: $200
Total Debt: $2,500

RETURN SERVICE REQUESTED
To: JOHN DOE 872 CONVAY STREET, LAS VEGAS, NV, 89408	SEND PAYMENTS TO: Dr. WILLIAM JOE, 123 Main Street, Katy, TX, 44920

Collection Letters and Collection Calls from a Debt Collection Agency puts a humongous pressure on your debtor, versus when you send a letter in your name. 

Contact us for your debt collection needs.

( Note: Above sample letters are for reference purposes only. Please speak to an expert legal attorney to alter or add appropriate verbiage. )

Credit card defaults require immediate resolution. This is because credit card debt is unsecured, meaning the borrowers do not have to provide collateral for the money they borrow. About 1.8% of credit card accounts in America remain at least 30 days past due. A good economy’s credit card default rate is around 2% and often shoots above 4% during slowdowns or recessions.

Accounts that defaulted on their credit card bills for over 60-90 days are usually forwarded to a professional debt collection agency since credit card issuers do not have enough time and in-house expertise to keep following up with defaulters.

It is important for your collection agency to have a thorough understanding of the laws governing credit card debt recovery and to tailor their collection strategy to each individual’s unique circumstances. For example, people with higher credit scores, temporary financial setback, good payment history, steady income, low overall debt and those who engage in communication are more likely to pay with persistent efforts, compared to other defaulters.

Recover your unpaid credit card bills: Contact Us A collection agency with nationwide coverage | High recovery rates

Many debtors cannot pay the full amount they owe, leading to negotiations for a reduced settlement. This process can be complex and time-consuming. Recovering credit card debt often takes a significant amount of time and resources.

Handling credit card defaults is essential for both consumers and credit card issuers. Defaulting on a credit card can have severe consequences for consumers, including damage to credit scores, increased interest rates, and legal actions. Here are steps for both parties on how to handle credit card defaults:

For Consumers:

1. Communication with the Issuer: If you are facing financial difficulties and believe you might default on your credit card payments, it is crucial to communicate with your credit card issuer as soon as possible. They may be able to work with you to develop a payment plan.
2. Budgeting and Prioritizing Payments: Create a budget and prioritize your spending. Focus on essential expenses and allocate funds to pay down your credit card debt. It may be necessary to cut back on non-essential spending.
3. Seeking Assistance: Consider speaking with a credit counseling agency. They can provide guidance and sometimes negotiate with credit card companies on your behalf.
4. Debt Management Plan: A credit counseling agency might suggest a debt management plan, where you deposit monthly money with the counseling organization, which then pays your creditors. This is often accompanied by concessions from creditors to lower interest rates or waive fees.
5. Legal Advice: If your debt situation is severe and the credit card issuer is taking legal action, it might be wise to seek legal counsel.

For Credit Card Issuers:

1. Monitor Accounts: Credit card issuers should closely monitor accounts for signs of distress, such as missed payments or sudden increases in balances.
2. Early Intervention: If an account shows signs of distress, the issuer should proactively contact the customer to discuss their circumstances and options.
3. Flexible Repayment Options: Offering flexible repayment options or temporarily reducing the interest rate can sometimes help a consumer avoid default.
4. Debt Collection and Legal Action: In cases where an account has defaulted and the customer is not responsive to communication attempts, the issuer may need to engage a debt collection agency or take legal action to recover the debt.
5. Charging Off Debts: If all efforts to collect on a defaulted account have been exhausted, credit card issuers might ultimately charge off the debt as a loss. They can also sell the debt to a third-party collection agency.

Both parties should be aware of the laws and regulations that govern credit card debts and defaults in their jurisdiction. It is also essential for consumers to understand their rights under consumer protection laws.

Electric, gas, water, sewer, and waste providers keep communities running. But high account volumes, tight margins, seasonality, and strict public-utility rules make past-due recovery uniquely challenging—especially final bills after a move-out. You need a specialist who protects your brand while improving net recoveries.

Why In-House Efforts Plateau

• Hidden cost of collections: staff time, training, QA, and turnover dilute results.

• Compliance exposure: FDCPA, TCPA consent/dialer rules, FCRA (if reporting), GLBA data safeguards, plus state PUC shut-off/moratorium rules. A single misstep risks fines and reputational damage.

• Operational gaps: large “long tail” of small balances, skip-trace needs on move-outs, landlord/tenant responsibility disputes, and seasonal spikes.

What Makes Us Different

• Utility-specific approach: respectful, “customer-first” collections that align with community expectations and board/council oversight.

• Compliance by design: FDCPA, TCPA (express consent management, DNC scrubs), FCRA/Metro-2 (optional, by client policy), GLBA; PCI-compliant payments and SOC 2–aligned processes.

• Omnichannel with consent: letter, phone, email, SMS, self-serve portal/IVR, and multilingual (incl. Spanish).

• Data-driven results: segmentation, propensity-to-pay modeling, right-time outreach, and real-time dashboards.

Serving Utility Companies Nationwide ! Need a collection agency: Contact us

Solutions Mapped to Your AR Stages

Step 1 — First-Party Reminder Program (Fixed-Fee)
Five gentle, branded reminders (email/letter/SMS where permitted) before third-party impact. Ideal for newly past-due and small-balance cleanup.

Step 2 — Third-Party Letter Series (Fixed-Fee)
Five compliant written demands with dispute-handling workflows. Preserves customer goodwill while increasing urgency on 30–90 DPD accounts.

Step 3 — Third-Party Collections (Contingency)
Dedicated utility agents, respectful but persistent outreach, advanced skip-tracing for move-outs/final bills, and optional credit reporting (client-controlled).

Step 4 — Legal Collections (Contingency, Client-Approved)
Reserved for select high-balance, well-documented accounts. Filing fees pre-approved; we manage counsel and evidentiary packages.

Clients can start at any step (1–3). For fixed-fee services, payments flow directly to you—no add-ons.

Where We Excel for Utilities

• Final Bills & Move-Outs: advanced skip-trace, new-address linking, employer/phone/email enrichment.

• Landlord/Tenant Responsibility: documented occupancy windows, lease linkage, and property-manager workflows.

• Dispute Resolution: meter read/date disputes, estimated bill corrections, and payment-plan conversion.

• Energy Theft/Tampering Fees: specialized scripts and evidence handling.

• Deposits, Fees & Returned Checks: deposit application/recovery, NSF, reconnection/field fees.

• Deceased & Probate Handling: compassionate outreach, estate claims, and timeline tracking.

• Bankruptcy & Military (SCRA) Protocols: automatic scrubs and compliant treatment paths.

• Medical/Critical-Care Flags & Moratoria: respectful handling; no shut-off pressure messaging, weather/winter rules honored.

• Small-Balance at Scale: automated micro-AR cleanups without burdening your team.

Integration, Reporting, and Security

• Fast, secure onboarding: SFTP/API or portal upload; account-level consent flags, service status, and move-out dates captured.

• 24/7 portal: placements, notes, disputes, recoveries, and dashboard KPIs (recovery %, liquidation by DPD, right-party contact rate, average days-to-pay, complaint rate).

• Controls: call recording, QA scorecards, model governance, and monthly performance reviews.

Pricing (Transparent & Performance-Aligned)

• Step 1 (First-Party Reminders): Fixed-fee $15/account

• Step 2 (Letter Series): Fixed-fee $15/account

• Step 3 (Third-Party Collections): 40% of amounts recovered

• Step 4 (Legal Collections): 50% of amounts recovered (court filing fees as approved; reimbursed upon recovery)

We’ll tailor rates for volume, balance mix, and services (e.g., credit reporting, Spanish support).

Results You Can Expect

• 10–25% lift in final-bill recoveries vs. in-house only

• 20–40% reduction in cost-to-collect on early-stage AR

• Measurably lower complaint rates with community-sensitive scripting

Getting Started (10-Day Go-Live)

1. Data map & consent flags

2. Policy alignment (moratoria, dispute windows, credit-reporting stance)

3. Scripts & letter approvals

4. Test placements & QA

5. Launch, then weekly performance huddles

Stop letting past-due accounts leak revenue. Choose a partner engineered for utility AR—and built to protect public trust.

We help utility companies recover unpaid bills through respectful, compliant, and cost-effective collection methods that protect your customer relationships.

Our tailored services include early outreach, skip tracing, and legal recovery – ensuring higher recovery rates without customer complaints

Even profitable businesses can run into a cash crunch because too much money is stuck in accounts receivable.

Recent studies on business payments show:

• A large share of small and mid-sized businesses are owed money on unpaid invoices.
• Many have invoices overdue by more than 30 days.
• Average Days Sales Outstanding (DSO) has crept higher in many industries.
• Finance professionals generally aim for a DSO under 45 days, though the “right” number varies by sector.

In short: cash flow is a board-level problem, not just an accounting task.

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AR Problems That Instantly Resonate With CFOs, Controllers & Bankers

If you recognize any of these, your cash flow isn’t working hard enough:

• DSO creeping up: You used to get paid in 25–30 days; now it’s 45–60+.
• Too many 60–90 day invoices: Aging reports are top-heavy in the 60/90-day columns.
• Chronic “good customers who pay late”: Sales defends them, but they’re quietly strangling working capital.
• Weak or inconsistent credit checks: New accounts get open terms without any real vetting.
• No clear escalation path: AR staff “chase” a few squeaky wheels; everyone else slips through.
• Staff stretched thin: Invoicing, cash posting, and collections are all done by the same overloaded people.
• High write-offs: You’re routinely writing off balances because they’re “too small to chase” or “too old.”
• Banks & lenders getting nervous: Covenant pressure, tighter borrowing base calculations, and more questions about your AR quality.

If you’re a bank or credit union, you see the same problems in your commercial portfolio:
clients with strong sales but unstable cash flow, relying excessively on credit lines to cover slow-paying customers.

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21 Practical Ways to Improve Cash Flow (Without Destroying Relationships)

Below are 21 specific, AR-focused actions that any business (and their banking partners) can relate to. You don’t need to implement all 21 at once—start with a handful, then layer in more.

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1. Define a Real Credit & Collection Policy (And Stick to It)

• Put credit limits, terms, and consequences in writing.
• Train sales and customer service so they don’t promise “whatever terms you need.”
• Decide in advance:
  • Who approves exceptions?
  • When accounts go on hold?
  • When invoices are escalated to external recovery?

A documented policy turns collections from a “favor” into standard operating procedure.

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2. Tighten How You Grant Credit

• Use credit applications that collect trade references, banking info, and consent to check credit.
• For higher-risk accounts, use credit reports and set lower limits and shorter terms initially.
• Review large accounts at least annually; adjust limits based on payment behavior, not promises.

Good credit decisions avoid bad debt before it starts.

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3. Shorten and Clarify Payment Terms

• Move from vague “net 45–60” to clear terms like “Due in 15 or 30 days.”
• Put terms on quotes, contracts, and invoices—not just in fine print.
• Spell out any late fees, interest, or collection costs.

Many businesses get paid late because customers honestly don’t know what “on time” means to you.

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4. Invoice Immediately and Accurately

• Send invoices the same day as shipment or service completion, not in a weekly batch.
• Ensure invoices are:
  • Correctly priced
  • Matched to POs
  • Sent to the right email address / AP portal
• Reduce disputes by clearly listing what was delivered, when, and to whom.

Slow or error-filled invoicing is one of the easiest cash-flow leaks to fix.

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5. Use Digital Delivery, Not Just Paper

The old advice about using postal forwarding and address services made sense in a paper world. Today, it’s more effective to:

• Email invoices and statements with read receipts or tracking where appropriate.
• Use customer portals so clients can download statements anytime.
• Maintain a clean database of billing contacts; update whenever staff changes on the customer side.

Paper can still be a backup, but digital should be the default.

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6. Make It Ridiculously Easy to Pay You

Customers pay faster when it’s simple:

• Offer multiple options: ACH, card, online portal, bank transfer, digital wallets where appropriate.
• Add “Pay Now” links directly on invoices and reminder emails.
• Allow saved payment methods for recurring invoices (with proper authorization and security).

Faster, convenient payment options directly support better cash flow.

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7. Use Early-Payment Incentives (Surgically)

• Offer small discounts like 1–2% for payment within 10 days for select, high-volume clients.
• Compare the cost of that discount to the cost of borrowing on your line of credit.
• Don’t give the same deal to chronic late payers who never respond to incentives.

Done well, early-payment programs can lower DSO without destroying margins.

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8. Enforce Late Fees and Credit Holds

Policies only matter if you use them:

• Charge late fees on overdue balances where permitted and clearly agreed in advance.
• Place accounts on credit hold when they’re past due beyond a defined threshold.
• Make sure sales knows the rules so they don’t circumvent AR.

This doesn’t have to be hostile. A calm, consistent approach is usually respected—especially by your best customers.

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9. Contact Overdue Accounts More Often (But Professionally)

Instead of one monthly statement:

• Start with friendly reminders 3–5 days before due date.
• Follow up at 7, 15, and 30 days after due date for unpaid invoices.
• Use a mix of email, phone, and—if appropriate—SMS.

A structured follow-up schedule is one of the most effective ways to reduce 30–60–90 day slippage.

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10. Segment Your AR and Prioritize

Not all invoices are equal:

• Segment by age, balance size, and risk.
• Give more attention to:
  • Large balances approaching 60–90 days
  • Customers with a history of slow pay
• Use lighter, automated reminders for small, low-risk balances.

This ensures your limited AR staff spend time where it will move the needle.

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11. Keep Customer Data and Documentation in One Place

• Centralize contacts, addresses, contracts, POs, and invoice history.
• Record notes from every call or email in a single system, not scattered spreadsheets and inboxes.
• Make sure anyone who calls a customer can see the full story at a glance.

Good documentation wins disputes and makes collections faster and more professional.

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12. Resolve Disputes Quickly

Disputed invoices are often the ones that never get paid if you don’t stay on top of them.

• Track disputes separately in your AR system.
• Set target resolution times (for example, 48–72 hours).
• Involve sales, operations, and service promptly so the issue doesn’t drag on.

Every unresolved dispute is cash you’ve effectively loaned out for free.

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13. Forecast Cash Flow Using Real AR Data

• Build a basic cash-flow forecast that includes:
  • Expected collections by week
  • Known large payments
  • Seasonal patterns
• Use your aging report to stress-test scenarios (for example, “What if 20% of 60–90 day balances never pay?”).

This helps management and banking partners see problems before they become crises.

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14. Align AR With Sales and Customer Success

Cash flow improves dramatically when:

• Sales understands that “profitable customer” includes payment behavior, not just gross revenue.
• Customer success teams are aware of chronic late payers and can reinforce expectations early.
• Everyone agrees on when accounts get escalated or placed on hold.

The goal is not to fight with sales; it’s to protect good customers and weed out bad behavior.

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15. Revisit Pricing, Contracts, and Scope Creep

Sometimes cash flow problems are actually profitability issues:

• Ensure your pricing covers extended terms and higher credit risk.
• Use contracts to define scope clearly and bill for out-of-scope work.
• Tie long-term or project-based engagements to milestone billing, not “we’ll pay when everything’s done.”

Healthy margins make it easier to offer occasional concessions without destabilizing cash flow.

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16. Use Internal “Soft Collections” Campaigns

Before anything escalates:

• Run gentle reminder campaigns in your own name (letters, emails, and calls).
• Emphasize maintaining the relationship while reinforcing terms.
• Give customers practical payment options (settlements, structured plans).

This can recover a large share of past-due balances without involving third parties.

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17. Automate Where It Makes Sense

Automation doesn’t replace judgment—it supports it:

• Automatic reminders based on aging.
• Worklists for collectors showing who to call today.
• Tools that sync with your accounting system and update statuses in real time.

Well-implemented automation lets a small AR team manage a much larger receivables portfolio.

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18. Establish Clear Cut-Offs for External Recovery

One of the biggest mistakes businesses make is waiting too long to involve a professional recovery partner.

Define thresholds such as:

• Any invoice over 90 days with no meaningful response.
• Accounts where promises to pay repeatedly fail.
• Customers showing other distress signals (multiple returned payments, sudden silence, etc.).

By the time invoices are 9–12 months old, collectability drops sharply. Timely escalation protects your bottom line.

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19. Choose Recovery Partners Who Protect Your Reputation

When you do escalate:

• Work with partners who are compliant, complaint-sensitive, and respectful of your customers.
• Look for:
  • Strong independent reviews and references
  • Clear compliance posture
  • Transparent fee structures (fixed-fee options for fresh accounts, contingency for older ones)

The right partner helps you improve cash flow without damaging the brand you’ve spent years building.

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20. Offer Structured Payment Plans for Struggling Customers

Not every slow payer is a “won’t pay”; many are temporarily “can’t pay.”

• Use structured plans with:
  • Clear start and end dates
  • Automatic payment methods where possible
  • Schedules that increase payments as their cash improves
• Tie any waivers or discounts to successful completion of the plan.

This often recovers more than an immediate write-off and preserves a valuable relationship.

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21. Regularly Review, Measure, and Adjust

Cash flow management is not a one-time project:

• Review key metrics monthly:
  • DSO
  • % of invoices current vs. 30/60/90+ days
  • Bad debt as a % of sales
• Identify root causes when numbers worsen: policy drift, staffing gaps, market conditions.
• Adjust policies, staffing, and external partnerships accordingly.

What worked a few years ago may be inadequate for today’s realities—higher rates, tighter credit, and more scrutiny from lenders.

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For Banks, Credit Unions, and Other Lenders

If you’re on the lending side, your risk team cares about cash conversion, not just revenue:

• Clients with high DSO and chronic late customers are more likely to lean on credit lines, miss covenants, and need restructures.
• Helping them implement better AR practices (and, where necessary, professional recovery) can:
  • Improve their coverage ratios and borrowing base quality
  • Reduce utilization spikes and emergency drawdowns
  • Lower the probability of default in your portfolio

By encouraging or facilitating stronger AR and collections processes, you’re not just “helping them collect” — you’re protecting your own book.

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How We Can Help

If your team is already stretched thin, it’s hard to do all of this yourself.

We work with businesses, medical practices, and financial institutions to:

• Diagnose AR problems quickly using your aging, write-off history, and current processes.
• Implement low-friction reminder campaigns that run in your name and keep relationships intact.
• Escalate only the accounts that truly need outside attention, using cost-effective recovery options.
• Do all of this in a way that’s compliant, reputation-sensitive, and aligned with your long-term customer strategy.

If your AR is telling you a different story than your income statement, it’s time to adjust your strategy. Strong cash flow isn’t about being aggressive; it’s about being organized, consistent, and proactive—and getting help at the right time.

If you need a collection agency to handle your accounts receivable: Contact Us

Automotive repair and body shop garages regularly face issues related to accounts receivable. Whether it is because a customer did not fulfill his obligation to pay or a delay/rejection of the claim by an insurance company. Past-due accounts can quickly erode the profits of an automotive workshop and even interrupt the smooth running of the facility.

If an Automotive workshop on a 20% profit margin, say 5% of their customers do not pay, then effectively 25% of their net profit is gone. Collecting money from existing customers is more important than getting new customers. Sounds unreal, but it’s correct.

Need a collections agency: Contact us

Besides the time required to generate new business, an automotive workshop faces many challenges. These include increased competition, certification requirements, integrated vehicle technologies, a limited number of skilled workers, paperwork, and higher expectations for speedy repairs despite a slower reimbursement process by insurance companies.

If a repair is being paid through an insurance claim, the garage must often navigate a complex process to get paid. This can lead to delays and increased administrative burden.

Relying on in-house staff, which are not adequately trained to collect the debt can be ineffective, time-consuming and costly. Transferring an account to a professional collection agency will reduce the staff burden and even result in higher recovery rates. Debt collectors are experts in collecting debt; after all that is what they do every workday. They ensure that the debt collection rules and regulations specified by the Federal and State governments are followed, minimizing the chances of a counter-lawsuit.

A collection agency will also do advance Skip Tracing, which helps to locate a debtor in case he has shifted from this residence. Services offered by collection agencies are usually diplomatic but can be slightly intensive if required. The two-step collection process offered by collection agencies is perfect for starting the diplomatic process initially and then using debt collectors or filing a legal suit to put more pressure to settle the account. Collection agencies can also report the debt to Credit Bureaus if you request them to do so. They drastically reduce the stress of debt collection for the owner and the staff.

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.

 

Unpaid bills of customers create a significant financial burden on telecommunication companies. The Telecom sector is highly competitive, and without a proper accounts receivable strategy, past-due accounts can severely impact their cash flow. Too many overdue accounts receivable restrict the ability of a telecom provider to expand their business, install new towers, and provide quality service to existing customers. It can restrict their ability to upgrade systems or to adapt newer technology to stay competitive.

To hire a collection agency: Contact Us

Telecommunication companies often deal with a large number of accounts, each with relatively low balances. The cost of pursuing each individual debt can exceed the actual debt amount, making recovery economically unfeasible in some cases.

The billing department of the telecom companies is always under a lot of pressure because the existing customers are always unhappy about the mandatory charges/taxes levied on the base price of a plan by law. Surcharges and taxes vary with every state and even district. A plan costing $49.99 per month will cost about $10-$15 more after taxes and surcharges. Moreover, if a customer uses services exceeding their monthly plan, it significantly overcharges. Many customers dispute these extra charges and often refuse to pay. Consumer Financial Protection Bureau recently conducted a survey and found that over one-third of telecom customers were behind payments due to billing disagreements or personal financial issues.

A collection agency will relieve your accounting staff from the headaches of collecting money from past-due accounts. A good telecom collection agency can serve national and regional telecom providers. They can communicate in both English and Spanish.

Benefits of hiring a Telecom Debt Collection Agency:

1. Agencies always do an advance skip tracing to locate the debtor and engage with him professionally and diplomatically. They are well-versed in handling common problems in debt collection and debtor excuses.

2. Run checks if the debtor has filed for bankruptcy or if he has deceased. If so, I recommend closing the case without wasting any more resources.

3. Report the debt to a Credit Bureau, if the cell phone operator wants.

4. Collect the debt by following the FDCPA laws prescribed by the federal government and do a preemptive scrub for “litigious” customers, thereby greatly reducing the number of lawsuits that a telecom provider may get dragged into.

5. Involvement of a Collection Agency conveys a powerful message to the customer, and they are more likely to settle, versus when the in-house employees of a telecom provider were trying to collect money under their own company’s name.

Collection Letters Service

The upfront cost for 5 Collection Letters is about $10 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.

Getting better collection rates from your agency:

1. Transfer the accounts early and automatically to your collection agency. The older an account gets, the harder it gets to settle.

2. During the collection process, customers often ask for the contractual agreement (soft/hard copy), copy of bills, and late fees. Those should be provided quickly because the mobile phone customer has the right to validate the debt.

3. Sign a Settled-In-Full agreement with your collection agency, which authorizes them to settle the case for slightly less money in some cases.

If you need a telecom collections agency to recover money from unpaid bills: Contact us

Check this: Cost of hiring a collection agency