FREQUENTLY ASKED QUESTIONS

When should a claim be submitted to a professional collection agency?

Accounts are delinquent when they have not been paid in accordance with your terms. Early contacts will give you the maximum chance of return. The most productive efforts take place during the period between 30-90 days past due. Beyond 90 days, recovery percentages start dropping dramatically. If an account is delinquent, you are probably not the only creditor demanding payment. Usually the creditor that acts promptly gets paid and those that wait, hoping to save the agency fee, wind up filing a claim in the Bankruptcy Court.

Turn over an account to a professional agency once you feel your own reasonable collection efforts are not productive.

Initially, it is only necessary to complete the AGREEMENT and SUBMIT CLAIM forms. Upon receipt we will begin to collect the account. You can at a later time mail or fax us copies of all documentation regarding a claim, including the sales contract, statements, invoices, correspondence, orders, credit reports, credit application, personal guaranty, returned checks, and other information that would help to establish your claim or help us to collect.

If a judgment has been obtained against the debtor, provide us with a copy. At a later time, if suit is required, we will need a certified and/or exemplified copy.

The odds of collection are fairly good at an early stage, but drop dramatically with the age of the account. The sooner an account is placed, the greater the likelihood of collection.

Generally, yes. Any agreed upon rate should be added to the account at the time of submission. If it is necessary to file suit, interest will be part of the legal demand. The rate varies from state to state.

If suit is filed, you can generally recover filing and service fees and other court costs. Attorney fee recoveries will depend on your agreement with your account and/or the laws of the state where the suit is filed.

1. That a contract (express or implied) existed
2. The terms of the contract
3. The merchandise was properly delivered or the service properly provided
4. Demand for payment has been made
5. Payment has not been received

If the debtor does not contest the suit, a default judgment can usually be obtained without the necessity of a personal appearance by a witness. Some courts require the submission of an affidavit to prove the claim before a judgment will be issued. If the claim is contested, it is usually necessary for the creditor to provide one or more witnesses who have personal knowledge about the facts of the claim.

Most commercial collection cases are resolved before they ever go to trial. In cases where a witness is required and it is not economically feasible to send one, the attorney will try to settle the claim so that there is some recovery.

A counter suit is the filing of a suit by the debtor against your company. The agreement of the attorney to handle the filing of your claim does not include the handling of a defense to the counter suit. It will be necessary to enter into an separate agreement with that attorney for your defense or you can retain your own attorney.

Very few counter suits are filed by debtors. Unless you have been previously alerted to claims being asserted by the debtor, your claim against the debtor is valid, and the debtor remains in business, you should seriously consider filing suit on your claim.