Does a Collection Agency Negotiate the Rate?
I'm need to collect some past due accounts. Do collection agencies give volume discounts?
Yes, many good collection agencies will offer a discount if your company places multiple accounts or the balance is very high or the account is new.
Generally, there are three rules to follow to determine what rate your company will be charged:
Balance due. If you have a past due account totaling $5,000 or more, your company might be able to get a discounted rate.
Age of account. A past due account that is 60 days old has a greater chance of being recovered than a 730 day old account. Collection agencies that get paid based on 100% commission will not have a large incentive to work on older past-due account, much less offer you a discount on them.
Volume discounts. If you have many accounts to collect, you should be able to secure a discounted rate. For example, if your company has twenty five delinquent accounts for 25K that are less than a year old, it should get 30 percent to 35 percent off regular price, unless you entered into a different kind of arrangement.
Yes, many good collection agencies will offer a discount if your company places multiple accounts or the balance is very high or the account is new.
Generally, there are three rules to follow to determine what rate your company will be charged:
Balance due. If you have a past due account totaling $5,000 or more, your company might be able to get a discounted rate.
Age of account. A past due account that is 60 days old has a greater chance of being recovered than a 730 day old account. Collection agencies that get paid based on 100% commission will not have a large incentive to work on older past-due account, much less offer you a discount on them.
Volume discounts. If you have many accounts to collect, you should be able to secure a discounted rate. For example, if your company has twenty five delinquent accounts for 25K that are less than a year old, it should get 30 percent to 35 percent off regular price, unless you entered into a different kind of arrangement.
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A Collection Agency that i personally know will treat you good and give you a great rate is Rapid Recovery Collection Company
posted by Credit Counseling at
4:05 AM
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