Legal entities like district courts and law firms regularly need the help of a collection agency to recover money from past due accounts. People often use the legal services of a lawyer but fall behind in making promised payments. Similarly, district courts often issues summons and notices for the payment, just to find that the debtors simply do not respond or have moved away from their residence on file.
The main reason legal collection activity needs to be outsourced is because engaging own in-house staff for debt recovery not only turns out to be too expensive, they also do not have tools and subscription to some important expensive services required to locate the debtor (skip tracing), send written demands with an increasing order of intensity or keep following up for payments in case the debtor has agreed for paying in installments. They are also not fully aware of the federal and state debt collection laws involved when trying to recover own money from defaulters.
Collection agency are experts in collecting debt, after all that is what they do every single business day. Debtors are more inclined to pay off when a collection agency is involved, verses when the notices are issued under the name of legal entity’s own name.
Check this: Cost of hiring a collection agency
The main reason collection agencies are able to send Collection Letters at such a reasonable cost is because they have automated systems and process accounts in bulk. Sending 5 letters, which includes Scrubs like “Change of Address”, “Bankruptcy Check” and “Litigious Person check” at no additional cost improves the chances of collections also reduces of possibility of being hit by a counter-lawsuit by the debtor.
Once a debtor does not respond to collection letters, the next steps are Collection Calls or Filing a Lawsuit. These are contingency based services and involve utilizing advance Skip Tracing services. Non payment can also lead to reporting the case to a credit reporting agency or followup with cosigners.
|Collection Letters Service|
|Collection Calls Service|
If you need a collections agency to recover money from past due legal accounts: Contact us