Choosing the right collection agency can lift recovery on aged A/R, protect your online reputation, and keep you compliant. Use this field-tested checklist to compare agencies across price, compliance, data security, and results.
Quick Comparison Table
| Criterion | Why it matters | What “good” looks like | Ask this |
|---|---|---|---|
| Industry fit | Workflows vary by vertical | Playbooks for medical, dental, commercial, education, utilities | “Show vertical benchmarks and 2 references like us.” |
| Pricing model | Misaligned fees cut net recovery | Clear fixed-fee vs contingency; sample invoices; see Pricing & Fees | “Provide fee tiers and an example invoice.” |
| Compliance | Avoid fines and brand damage | Written FDCPA policies; HIPAA/GLBA where applicable (see Medical / Dental) | “Share policies and training logs.” |
| Data security | Protect PHI/PII and vendor risk | Documented controls; MFA; encryption; cyber insurance | “Provide attestations and cyber policy limits.” |
| Skip-tracing | Drives right-party contacts | Multi-source data; documented hit rates; included fees | “What are your hit rates by segment?” |
| Reputation protection | Tone affects complaints/reviews | Scripted empathy, QA, complaint workflow, call recordings | “Share scripts and QA scorecards.” |
| Reporting & portal | Visibility = control | Dashboard, notes, cohort analytics, exports | “Show a sample weekly/monthly report.” |
| Credit reporting | Powerful but regulated | Clear criteria; dispute-friendly; compliant timing | “When do you report and when not?” |
| Legal escalation | Needed for select cases | Nationwide attorney network; pre-suit success gates | “List pre-suit thresholds and costs.” |
| Onboarding speed | Faster start = faster cash | List load < 3 days; custom letters/dialer SLAs | “Give me a timeline with owners.” |
| Service levels | Predictable CX | SLAs for response, dispute TAT, call-recording access | “Include SLAs in the contract.” |
| Results & benchmarks | Proof over promises | Cohort data by age bucket and balance size | “Share anonymized performance by segment.” |
| References & reviews | Third-party validation | Industry-matched references and public reviews | “Can I speak with two similar clients?” |
14-Point Checklist (Actionable)
1) Industry fit
Choose an agency with proven workflows for your vertical: Medical, Dental, Commercial, Education, Utilities.
Ask this: “Show vertical benchmarks and two references like us.”
2) Pricing clarity: fixed-fee vs contingency
Match fees to account age and balance; avoid hidden add-ons. Compare options on our Pricing & Fees page.
Ask this: “Share fee tiers and a sample invoice.”
3) Compliance program
Verify FDCPA adherence and, where applicable, HIPAA/GLBA safeguards and TCPA-safe communications (see how we handle this in Medical and Dental).
Ask this: “Provide written policies and training cadence.”
4) Data security
Look for documented security controls (MFA, encryption at rest/in transit, least-privilege access) and cyber insurance.
Ask this: “Send attestations and cyber policy limits.”
5) Skip-tracing quality
Better data sources = higher right-party contacts and faster resolution. Relevant for both Commercial and consumer verticals.
Ask this: “What are your hit rates by segment? Is it included in fees?”
6) First-party vs third-party workflows
Early-out brand-safe touches vs firm third-party demands; both should be configurable. See examples within our services overview.
Ask this: “Show cadence and channels (email/SMS/IVR/letters).”
7) Reputation protection
Scripted empathy + QA reduces complaints and protects reviews—critical in Dental and Senior Living.
Ask this: “Share call scripts, QA scores, and complaint process.”
8) Reporting & transparency
Demand a portal with account notes, dashboards, cohort analytics, and exports. For what we report, see our services overview.
Ask this: “Send a sample weekly/monthly report.”
9) Credit-bureau reporting
Use carefully, lawfully, and with consumer-friendly dispute handling. Policy differs by vertical—e.g., Utilities versus Commercial).
Ask this: “When do you report and when is it withheld?”
10) Legal escalation
Seek a nationwide attorney network with pre-suit success gates and transparent costs. This is particularly relevant on older balances in Commercial.
Ask this: “Share thresholds for suit and cost schedule.”
11) Results & benchmarks
Insist on anonymized performance by age bucket (<90, 90–180, >180 days) and balance size—see case patterns across Medical, Dental, and Commercial.
Ask this: “Provide cohort outcomes for accounts like ours.”
12) Onboarding time
Clear milestones: list-load, custom letters, dialer setup, portal training. We outline this in our services overview.
Ask this: “Map the timeline with owners for each step.”
13) Service levels
Contractual SLAs for response, dispute TAT, complaint handling, and call-recording access.
Ask this: “Add SLAs to the MSA/SOW.”
14) References & reviews
Validate with industry-matched references and public reviews; you can also review outcomes by vertical: Medical, Dental, Utilities, Schools.
Ask this: “Can I speak to two similar clients?”
Red Flags to Avoid
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No written compliance program or training logs
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No security attestations (e.g., SOC 2) or cyber insurance
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Complaints about aggressive tactics or sudden review spikes
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Opaque pricing, “per-hit” skip fees, or surprise add-ons — compare with our Pricing & Fees
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No reporting cadence or portal access
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One-size-fits-all approach; no industry references
FAQs
Q: What recovery rates should I expect by account age?
A: Newer accounts (<90 days) recover the most via first-party/fixed-fee. Older balances often perform better on contingency with targeted outreach and (when appropriate) credit reporting or legal options. Explore by vertical: Medical, Dental, Commercial.
Q: How do I choose between fixed-fee and contingency?
A: Use fixed-fee for fresh, lower-balance accounts where reminders work (you keep 100% of payments). Move older/harder debt to contingency with transparent tiers. See examples on Pricing & Fees.
Q: How are patient/customer complaints handled?
A: Ask for the complaint workflow, response-time SLA, sample responses, and how QA audits calls to prevent issues. For sensitivity in senior care, review our guidance for Senior & Assisted Living.
Q: Do I need credit reporting?
A: Not always. It’s powerful but regulated. Your agency should document when it’s used, validate accounts, and handle disputes promptly (see Utilities vs. Commercial).
Q: What legal costs might I incur?
A: Pre-suit demand is typically included. Court filing and process-server fees are usually client-approved pass-throughs. Get costs in writing before escalation. Learn how we approach this in Commercial Collections.
Talk to Us
Want a side-by-side agency comparison tailored to your industry? We’ll map fees, workflows, and expected recovery by age bucket.
Get a comparison → https://nexacollect.com/contact/
See our services → https://nexacollect.com/debt-recovery/