FAQ...for businesses wanting to get paid!
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Once you have placed your account with one of our offices, we send an initial collection letter to the debtor letting them know the account has been placed with our office, who the creditor is (you) and how much is owed on the bill. By law we must also let them know that they have 30 days to dispute the debt or request verification. We cannot demand payment-in-full or report the debt to the credit bureaus within this 30-day time frame. After the 30 days, if there has not been a payment or response, we will send a demand for payment in full. At this point the debt is reported to the credit bureaus. Phone calls become frequent and we will attempt to reach them at home, cell and work numbers.
Yes, the older a debt the harder it is to collect. Typically we recommend an account be placed with us between 90-180 days from date of last transaction.
The use of a quality third party collection agency helps to provide the client the following benefits:
- Reduced Overhead
- Increased cash flow
- Increased Production
- Minimizes future bad debt problems
- Maximizes profitability
Our office will accept accounts in the following ways:
- Internet (Web Site Transfer) with either single account submission or bulk account submission
Not all claims are collectible as some debtors may skip, file bankruptcy, become deceased or just refuse to pay. The age of the debt also plays a part in how long it may take to collect. If the debt is old and/or the debtor requires backup paperwork. This can prolong any collections. Rest assured though that our offices will work hard to collect any and all monies owed in as quick a time period as possible. We work hard to recover this money to show you that you have made a wise decision to utilize our agencies.
The listing agreement with Professional Collection Service provides information on how to handle this situation. You may review these guidelines on the March 2, 2015 blog post.
Yes, but only with our clients authorization. Commision rates increase due to the additional expense we incur. Once a judgment is awarded, the debt is collected through wage garnishments, bank levy or asset sale.
Skip tracing is the process our collectors use to obtain contact information on your debtor, such as a current or alternate address and telephone number, and can include obtaining a person’s place of employment and current legal cases they are involved in.
Any monies collected on behalf of our clients is remitted after the first week of the following month that recovery was made.
Our offices may need the following documents during collection efforts: (If available)
- Ledger history or itemized statement
- Patient/Consumer registration or application
- Contract, promissory note or agreement
Here are the minimum requirements:
- Name of debtor (First, Last, MI)
- Address (City, State, Zip)
- Balance owed
- Date of last charge or service
If you do not have this information on hand, consider adding a policy of obtaining at least some of these to your business practices for future accounts.
The most important requirement we have is that you report to us if a debtor pays you directly. It is illegal for us to try to continue to collect once they have paid either you or us. Once you place the account with us, you must stop all in-house activity, do not send out monthly statements or continue to add any interest.
PCS can collect on interest as long as the interest that is charged adheres with Nebraska State Laws. In Nebraska, the maximum interest rate that can be charge is 16% per annum, or 1.33% per month, and this must be agreed upon in writing with the consumer/debtor. Late charge, late fee, rebilling charge, etc., all are considered to be interest in Nebraska. PCS is unable to collect on accounts with interest above the allowed maximum. (Nebraska Revised Statutes, Section 45-101.03 & Section 45-101.04)
Your company name, address, fax, phone, and email.
The debtor’s contact information, name, address, any contact phone numbers, email etc.
Total amount owed, last date of service, and last payment date.