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Sending fixed-fee “written demands” through a debt collection agency is the cheapest and most effective way to recover money from debtors when your unpaid bill is no more than 180 days past due. They cost merely $15 an account, and debtors pay directly to you.

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Written demands of a collection agency have the perfect blend of intensity and diplomatic verbiage.  For accounts older than 180 days, the contingency-fee-based Collection Calls service is better suited.

What makes the Written Demands so effective:

1. They firmly communicate to debtors that their account has been forwarded to a professional 3rd party for debt recovery. The situation has become a lot more serious. This is an eye-opener for the debtor, and he will be more likely to pay off the debt if he can.

Many customers have multiple creditors and stop picking up their phones altogether. The only way to contact them is by sending Collection Demands.

2. Collection agencies can report accounts to Credit Bureaus, creating multiple financial problems for the debtor. This alone is a big pressurizing factor for them to make a payment.

3. Debtors rightfully understand that this is just the beginning of the collections process. They will be contacted repeatedly through written demands and eventually by a debt collector. Even a legal suit may be filed eventually.

What makes the image of collection agencies so horrific? A collection agency will take every step that the law permits them to recover the debt. A standard creditor is not even aware of all the steps that can be made to recover the debt. In fact, they do not even have the resources or a process in place to perform a systematic collection activity. Sometimes newbie debt collectors who are not entirely unaware of FDCPA laws make the mistake of engaging in unethical and threatening ways of debt collection. Unethical and aggressive collection tactics are entirely unlawful. But this has created a nasty perception ( a monstrous image) of Collection Agencies among most people. However, this horrific perception of agencies sometimes complements the collection efforts of even those agencies which perform collection in an ethical, diplomatic and empathetic way. Creditors should always hire an experienced collection agency with competitive rates. Agencies offering cheap fees usually employ inexperienced collectors who may potentially land themselves and their clients in trouble.

4. Debtors often relocate to a new address and try to become untraceable, thinking this will protect them from all the debt recovery contacts. Since collection agencies perform “Change of address” scrub from various sources, they can generally send the collection letter to the debtor’s new address. Debtors are quite surprised when they receive demands on their new address and gradually start accepting that there is no point in running away from their payment obligations.

5. Collection demands are extremely cost-effective. Can you imagine sending five collection demands for less than $15. Wait, but it is not just the printing, mailing, and infrastructure costs. Collection Agencies perform various scrubs on every account to get more information about the debtor (like Change of address, Bankruptcy check, Litigious debtor check etc.). Their collection demands are handcrafted and approved by expert attorneys. Each letter has different verbiage for maximum impact. These written demands contain a host of legal verbiage, good enough to make any average person very concerned, thereby elevating the intention to settle the debt.

6. They can send collection demands in both English and Spanish. Regardless of the language, both versions have a high impact.

7. These diplomatically worded Collection Demands are the best way to collect money without damaging customer relationships.

8. Say, even if merely 25% of debtors clear their bills during the Collection Demands service, you would have received returns that are probably over ten times than you had invested in buying collection letter accounts. If accounts are submitted without delay (say around 90 days), recovery rates can easily exceed over 50% with collection demands service.

If you are looking for a flat-fee collection agency: Contact Us

Mortgages are the biggest loans in the United States, running into hundreds of thousands of dollars against each property. Many mortgage borrowers go above and beyond what they can afford to become proud home-owner of that expensive dream house. If a recession strikes, such borrowers are the first ones to default on their obligations.

Before their financial situation deteriorates further, hiring professional debt collectors to cut potential losses a lender may incur is highly advisable. Not every collection agency understands how the foreclosure/mortgage loan process works.

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Most Banks and Credit Unions have their in-house collection teams to remind borrowers once they miss a payment. They usually report a late or missed payment to the borrower’s credit report every 30 days. But those missed payments are not going away; they make the mortgage repayment even steeper and more challenging for the borrower. Only a couple of missed payments can potentially push many borrowers beyond that point where they become mortgage defaulters.

To get a higher mortgage recovery, follow these three thumb rules.

1. Transferring an account to a collections agency earlier rather than waiting.

2. Scanning and storing all paperwork in electronic format and forwarding it to the collections agency promptly when requested.

3. Rather than selling the debt cheaply to a debt buyer, outsource it to a collection agency for better collection returns and profits.

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 a debtor many times. If everything fails, a possible Legal Suit can be filed if recommended by the attorney.

Steps involved in recovering unpaid mortgage

Recovering unpaid mortgages involves a series of legal and administrative steps. It’s important to note that the process may vary depending on the jurisdiction or country in which the property is located. Here is a general outline of the steps that may be involved in the process of recovering an unpaid mortgage:

1. Review the Mortgage Agreement: The first step is to thoroughly review the mortgage agreement to understand the terms and conditions, and what steps can be taken in the event of non-payment.
2. Contact the Borrower: Before taking any legal action, it is standard practice to contact the borrower to inquire about the missed payments. It is possible that there is a legitimate reason for the non-payment.
3. Send a Formal Notice: If the borrower does not respond or is unable to make the payments, a formal notice may be sent. This notice should detail the amount due, including any late fees and the deadline by which the payment must be made.
4. Consider Alternative Solutions: Depending on the borrower’s circumstances, you might consider alternative solutions such as loan modification, forbearance, or a repayment plan.
5. Initiate Legal Action: If the borrower is still not able to make the payments, the lender can initiate legal proceedings. This usually involves filing a lawsuit in court to recover the money owed.
6. Foreclosure Proceedings: In many cases, recovering an unpaid mortgage may involve the lender repossessing the property through a process known as foreclosure. The foreclosure process can be judicial or non-judicial depending on the laws in the jurisdiction.
7. Property Auction or Sale: Once the property is repossessed, it may be sold through an auction or traditional sale to recover the unpaid mortgage amount.
8. Deficiency Judgment: In some cases, if the sale of the property does not cover the total amount owed on the mortgage, the lender may seek a deficiency judgment against the borrower for the remaining balance.
9. Collecting the Deficiency: If a deficiency judgment is granted, the lender may take further actions to collect the remaining balance. This can include garnishing wages, levying bank accounts, or placing liens on other properties owned by the borrower.
10. Report to Credit Bureaus: The lender may also report the foreclosure and any deficiency judgments to credit bureaus, which can have a significant impact on the borrower’s credit score.
11. Closing the Case: Once the lender has recovered the funds or the property has been sold, the legal case will be closed.

It’s important to note that laws and regulations governing mortgage recovery and foreclosure vary widely by jurisdiction. It is advisable to consult with a legal professional who specializes in real estate and mortgage law to understand the specific processes and requirements in your area. Additionally, lenders should also be cognizant of any legal obligations they have to act in good faith and to comply with laws that protect the rights of borrowers.

If you are looking for a Collections agency with extensive experience in recovering and negotiating mortgage debt: 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.

 

Lawn care and landscaping companies regularly have unpaid bills from customers who do not fulfill their promise of making timely payments once the work has been completed. They do not have time to follow up on these unpaid bills effectively.

Lawn care contractors struggle to keep their accounts in “green” because they employ too few resources to manage the business’s administrative side since it is considered a cost center. These past-due accounts quickly become a huge problem, impacting cash flow in this fiercely contested industry.

Contact us if you need a collection agency to recover your unpaid bills.

Landscaping companies face numerous business challenges:

1. Seasonality: This industry is highly seasonal in many regions, with demand peaking in spring and summer. This seasonality can make cash flow management difficult. Companies need to budget effectively to maintain their business operations during the off-season.
2. Labor Issues: Landscaping is labor-intensive work and finding reliable, skilled, and affordable labor is a major challenge. In many areas, there’s also a high turnover rate in the industry, which can lead to increased costs related to hiring and training.
3. Competition: The landscaping industry is highly competitive. It’s fairly easy for someone to start their own business, resulting in an oversaturated market in some areas. Companies have to work hard to differentiate themselves from competitors and attract new customers.
4. Regulations and Compliance: Landscaping companies must comply with various local, state, and federal regulations. These might pertain to pesticide usage, waste disposal, water conservation, and more. Navigating and complying with these regulations can be challenging and costly.
5. Climate Change and Sustainability: As climate change becomes more pressing, many customers demand eco-friendly landscaping solutions. This requires investment in sustainable practices, new equipment, and training.
6. Equipment Costs and Maintenance: Landscaping requires a variety of equipment, which can be expensive to purchase and maintain. This can be particularly challenging for small businesses or startups with limited capital.
7. Technology Integration: The integration of new technologies, like landscaping design software, automated irrigation systems, or project management tools, can be challenging but is increasingly necessary to stay competitive. Some companies may struggle with the cost of these technologies or the learning curve associated with their use.
8. Marketing and Customer Acquisition: With the growing competition, effective marketing is more important than ever. Small businesses in particular, may struggle with creating an effective online presence or leveraging social media to attract customers.
9. Price Pressure: With so much competition, there is often pressure to keep prices low to attract clients. However, low prices can impact profitability if not managed carefully.
10. Health and Safety Risks: The industry often involves physically demanding work, and companies need to manage health and safety risks to protect their employees and avoid potential liability.

Need a Collection Agency?

A professional debt collection agency works as an extended branch of your business. They are experts in debt collection. They will diplomatically approach your clients whose payments are late and employ various tactics to recover money from them. Collection agencies follow the laws of “The Fair Debt Collection Practices Act (FDCPA)”. Their staff knows how to negotiate patiently and handle common debtor excuses. Since lawn care and landscaping companies do not have a good enough system for overdue accounts receivables and unpaid bills, hiring a collection agency becomes mandatory. You must provide a copy of your signed contract to your collection agency if your customer disputes the debt.

Collection Demands 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 additional 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 is recommended by the attorney.

Check this: Cost of hiring a collection agency

Your options include trying to collect by first sending low-cost “Collection Letters” followed by “Collection Calls” or going for “Collection Calls” directly. Collection agencies are licensed, insured, and bonded. They do various checks to minimize risk for your business and attempt to maintain a good relationship with your clients by using a diplomatic approach to recover money. If requested, they will even report the debt to the Credit Bureaus and may even file a Legal Suit to recover money. For credit bureau reporting SSN or DOB of your customer is needed by law.

The housing market has seen new buyers since 2015. We hope all these new families are generating good revenue for you. While you make the world go greener, a collection agency will work aggressively to keep your accounts receivables healthy and green.

Pest Control is a very competitive industry. The market is huge, but so are the number of pest control companies. Overdue accounts receivable can erode profits for which you have worked so hard. The staff of a pest control company is not well trained to recover money from unpaid bills. Constant followups with defaulters can be a very frustrating activity.

Hiring a collection agency for your accounts receivable will enable you to focus on your business, recover more from past-due accounts and also protect your firm against lawsuits that you may run into.

The staff of collection agencies are well trained to follow the debt collection laws like the “Fair Debt Collection Practices Act (FDCPA)”. They protect you and your staff from breaking laws while trying to recover your own money. Moreover, most Collection Agencies do a “Litigious Individual” check. That allows them to take a different approach when collecting from these high-risk defaulters who look for excuses to file a counter lawsuit. 

While the exterminators concentrate on eliminating roaches and rodents, the collection agency will eradicate your headaches related to the past due accounts. Collection agencies follow a diplomatic approach for collections. Therefore it is your best chance to protect your brand image without annoying customers.

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.

Low-cost Collection Demands from Collection agencies is the best-starting step towards recovering your money. Five letters are sent out in about 45 days, starting with softer verbiage in letter one to a firm (yet diplomatic) verbiage in letter five. It indicates the debtor that you are serious about recovering your pending bills. Unpaid bills can be further transferred for “Collection Calls” or the “Legal Suit” service.  

Pest control services which do not want to put money for buying collection letter accounts should definitely go for no-upfront cost Collection Calls service; this service is purely contingency-based and delivers in good recovery rates. 

Check this: Cost of hiring a collection agency

Involvement of a collection agency is a game changer while collecting money. The debtor knows that this matter can not only be reported to Credit Bureaus, damaging his credit history but more importantly, a collection agency will go great lengths to recover the money.

Contact us if you are looking for a collection agency with experience in your industry.

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Total student loan debt in the USA is more than $1.78 trillion. College grads with loans owe about 37,000 on average. Unlike elementary school debts, which are easier to collect, student loans for engineering, management, and medical courses carry a much larger balance and are much harder to collect.

Diplomacy is essential in the debt recovery process for colleges. Unlike other debts, the probability of recovering student loans improves as people make more money and settle in their careers.

Unlike other loans, student loan obligations do not go away even if the borrower files for bankruptcy. A private student loan is considered in default after three straight months of non-payment. This delinquent debt is usually forwarded to a professional Debt Collection Agency. An experienced collection agency can reduce the dropout rate and even encourage students to re-enroll by explaining how the federal Pell Grant program will likely cover their unpaid fees if they re-enroll.

Collecting money for colleges nationwide Need a Student Loan Collection Agency? Contact Us

A professional debt collector can usually deliver high recovery rates on these accounts.

Student loans are rising, and so are the defaults. It is undoubtedly an unfortunate scenario for students, but even the lenders are taking a big financial hit and, in some cases, are forced to write off these loans completely. Banks and Credit Unions primarily issue private student loans. After the 2008 recession, many lenders cut back on their student loan programs.

A Collection Agency will seek repayment from the borrower and the cosigner (or the guarantor) if required. Education loan collection requires sending collection demands, making several collection calls, and sometimes escalating for legal action. A collection agency must follow many debt collection laws like those specified in the “Fair Debt Collection Practices Act (FDCPA)”. Upon the lender’s request, a college collection agency may report this debt to the Credit Bureaus, damaging the borrower’s ability to take further loans like mortgages, credit cards etc. 

Check this: Cost of hiring a college debt collection agency

The collection agency fees can be added to the principal amount. All these clauses are defined in the promissory note signed during the initial student loan processing. Some state laws set a lower limit. The borrower is still responsible for any unpaid interest, late fees, and principal, which keeps getting more significant as time passes by.

Higher education is expensive in the United States. It is crucial to involve a Collection Agency ASAP because the amount becomes too big to repay as the interest increases. In such a scenario, the borrower often gives up entirely on repaying the loan, ready to face whatever consequences that may follow.

Even if the lender/collection agency gets a court judgment against the borrower or cosigner for wage garnishment for private student loans, this garnishment can be only up to 25% of disposable pay in most states. With the court order, a lender/collection agency can sometimes seize assets and bank accounts and place liens against property owned by the borrower or cosigner. Laws vary a lot from state to state. Getting a “highly favorable” judgment is understandably hard because the lender, the big guy, is often seen as the bad guy and the borrower is seen as the victim of circumstances.

Furthermore, there is a different approach when collecting medical debt versus non-medical debt. Therefore you cannot just hire any collection agency; you must engage a debt collection agency with extensive experience recovering money from these higher-value student loans.

Collection agencies are experts in collecting debt, including private student loans. They do a far superior job, provided the account is transferred early enough. Another huge disadvantage of waiting for private student loans is that the “Statute of limitations” applies here and could shield the borrower eventually. The statute of limitations does not apply to Federal loans. Courses like Under Grad, Graduation and Post Graduate courses are far more challenging to collect by engaging in-house staff and eventually require the intervention of a professional collection agency.

Startling Statistics 1 in 4 American adults has student debt. Medical Student Loans carry the highest balance. 7 in 10 college graduates are now graduating with student debt The price of a college education has quadrupled since the 1980s, rents have doubled. ( Wages haven’t kept up) 40% of borrowers are expected to be in default by 2023. 3 million Americans over the age of 60 are paying off student debt. Thousands are having Social Security payments garnished. The largest private student lenders in USA are College Ave, CommonBond , Earnest , Navient, Sallie Mae and SoFi.

Reference:
https://finance.yahoo.com/news/m-29-old-235k-student-151734965.html