The first step in shortlisting a collection agency is to ask them to submit a Request-For-Proposal (RFP) so that you can pick the best collection agency at the best price.
Here are the most important points to include in your RFP questionnaire.
- Is your collection agency nationally licensed or not? (If not, which all states are you licensed in?)
- What services do you offer – Check all those which apply (Collection Letters, Collection Calls, and Legal)?
- What are the fees for each service and method of payment?
- Do you have a secure portal for submitting accounts? Do you have any security certifications (Like SSAE / SOC / HIPAA etc?)
- Can the accounts be uploaded in batch using an excel spreadsheet?
- Can you provide references (or names) of existing clients similar to our company? What is your average collection rate for our industry?
- Are your debt collectors regularly trained for debt collection laws like FDCPA/TCPA/HIPAA/State Legislation?
- What if the remittance frequency for the amount collected by the collection agency?
- Do you provide monthly collection status reports for all accounts?
- Which subcontractors/vendors are involved in performing your services? Do they also handle the debtor data securely?
- Are any of your company operations located overseas, or are you a 100% USA-based company?
- In case of a debtor dispute or litigation, what is your procedure? Do you have liability insurance against such disputes?
- In case of service issues, who will be our point of contact from the senior management?
- In case of disagreement, are we allowed to withdraw all our accounts from you? Are there any exceptions?
- Do you offer both B2B and B2C collections?