Collecting on Past Due Accounts Using a Collection Agency or Debt Collection Law Firm
For small business owners, collecting on past due accounts from your company’s customers is time consuming and keeps you from focusing on your company’s core business. Because of that, many businesses turn to commercial collection agencies and or debt collection law firms to assist with debt collection efforts. A collection agency can offer some value for those companies that have many small balance accounts that need to be sent to outside collection. However, as we have previously talked about in previous articles is the fact that collection agencies are not licensed to practice law. A collection agency must send accounts to collection attorneys and debt collection law firms for further debt collection efforts once it is determined that the collection agency will be unable to collect on the past due debt. In doing so the collection agency raises its contingent collection fee.
Collection Agencies Can Serve a Limited Purpose
Debt collection law firms send out demand letters as well as make debt collection calls to your customers just as a commercial collection agency would do. However, a major distinction between a collection agency and a debt collection law firm is that the demand for payment of your company’s past due accounts will come from a collection lawyer. Receiving a demand letter for payment from a collection attorney lets your customer know that your company is prepared to take your customer to court if an amicable resolution to the past due account cannot be reached. In addition, your company will not have to pay an inflated contingency fee by sending accounts directly to a collection law firm as your company will not have to pay the collection agency an extra fee for simply sending the past due account to a collection law firm.
Call to Speak to Our Collection Attorney
We invite you to contact our debt collection law firm and speak to our collection attorney. Together we would devise a debt collection strategy that was just right for your company. We would be happy to go into more detail about the differences between your company using a debt collection law firm rather than a commercial collection agency.