If you think being on the receiving end of a bill collection agency is bad, you should try actually hiring one. Unfortunately, sometimes all your attempts at writing letters, meeting with people in person, and calls to their homes and businesses don’t yield the money you are owed. Then you are faced with a conundrum: what is the most efficient way to get your money back?
The most common choice is contacting a collections agency. These agencies can be useful because they are experts who know exactly what should be done to get your money. In addition, they will be familiar with the laws governing debt collection in area, which can be a real headache to deal with. Debt collection agencies will vary in cost depending on the size of the debt and the amount of business you bring. You will probably give over 25 to 30 percent of the amount collected to the agency, with some requiring fifty percent.
Another option is hiring lawyer who specializes in debt collection. These can sometimes be more effective than hiring a debt recovery agency, especially if the debt collection involves some sort of legal action. Attorneys usually charge an hourly fee, they may request at least one third of the amount recovered, or they could ask for both. Also remember that the payment to the attorney will be in addition to any fees or charges related to the actual lawsuit. If you don’t think you would be willing to take the case to court then you probably should not hire an attorney, considering the cost involved.
A good system to try is to refer a bad debt to an agency first and then to an attorney if you think that you will have to take the case to court. Although lawyers are generally speaking more expensive, it might be a good idea to go to one directly if you’re sure that you will have to deal with the person you are trying to recover funds from in court.
When you finally choose your course of action, ask for a client list from the debt collection agency or attorney first. Try to meet with the owner or manager-or the partners of the law firm-to make sure that they seem trustworthy. After all, they are going to be dealing with your money for your business, so you should make sure that they make you feel comfortable.
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