Purchasing Debt Collection Services?

[Virtual-R]

Hi Guys,

Just wondering if anyone has experience with hiring a debt collection company? I have an account 6 months overdue and the client will not return calls, emails or respond to postage correspondence. I've warned in a previous letter that if the amount is not paid it will be referred to a collections agency. The final letter I sent was via registered post, so I have confirmation that the company has received the final notice and a name / signature from them when it was delivered.

Been looking online but most of the collection companies look fairly non reputable or difficult to deal with. Anyone else run a business or work for a company that uses debt collection services? If so which company do you use and what are their processes?

It's pretty much at the time now where I need to hire the services of one of these companies, I really just want to hand it over for someone else to manage and make it as easy as possible, as its taken up far too much of my time already. Any advice is much appreciated

[Santaria]

Depends on how much you are actually trying to get back. Most debt collection services work on a percentage basis, so if it's X amount, they would want 25% of X for their services. Collection House were always good to us, but again, it depends on the amount you need to claim back.

[kwijibo]

My gf had some one who owed her money for ages (she is a personal trainer) and she served them with a court notice. It cost her about $70 from memory but it scared them into paying it immediately.

[Hz-Lab]

yeah i dunno the details of this kind of thing. But is it worth sussing out the small claims court 1st? I had one bad debtor last year and I eventually just gave up. Bastards didn't respond to anything. Was only $300 they owed me so I figured it was easier just to forget it. Whenever I see my design on their cars on the telly, I grind my teeth a little though.

[Virtual-R]

Yeah my debt is only $220, I'm really only wanting to chase it up to show them they can't purchase a service, use it for a year with no complaints then do a runner when the bill comes in. Money doesn't bother me too much it's more the morals of it all, if they're not willing to pay don't contract the service. This is a well established company I'm dealing with too, $220 is spare change for them. But seems they prefer to play games than do honest business.

Sent a message to collection house waiting for a reply, had another recommendation for a small claims debt collector too at a 20% charge. As long as it doesn't end up costing me more money than I'm trying to recover is all I'm worried about, taking things to small claims could quickly blow the debt way out of proportion especially when your dealing with a company not an individual.

Needless to say, I no longer offer credit on services any more. Most of my previous clients were really good at paying their dues though, but guess some dodgy people will always exist n there's no national register to verify their character, can only verify they have money to pay lol

[Speed]

in my opinion $220 isn't worth losing sleep over, you can only put it down to experience, learn & move on. You won't teach them a lesson, they will always be arseholes.
You've changed you billing practices & that's the best thing you can do.

That being said, a court order will usually do the job.

[Robbo]

If it is $220, let it go. It is tough but if they don't want to pay, it is hard to get it out of them and even debt collectors would probably suggest, let it go.

I chased $800 for ages and got some debt collectors involved. The agency indicated the guy was a prick and had a history of it. I had to let it go. I hoped for many months i'd bump into the dirtbag in a dark alley. I have let it go now after about 10 years ... But if I ever see that cock sucker ... hmmm .. breath breath.

[ysu]

I had clients disappearing with my money, more than once now.
One was a tiny one, 100 or so, the other was a biggie, over $2000 - but due to certain circumstances I had to let that one go, too.
If you run a business this is, sadly, part of it.

[macca]

or there are building contractors who go under owing many thousands od dollars sometimes totalling in the millions to all the suppliers / subbies etc, you'll be lucky to get anything back, I went through all that in the early 90's, now I only do work for people I am very sure that I can trust to pay up. Having said that, one of my clients has had to refinance to the tune of $500K because two builders went belly up. Strange how the directors always still seem to continue to lead the high life, regardless of legislation.

Somewhere I still have my first bounced cheque, early '80's, about $700 from memory. When I rang trhe administrator they just said to get in line how many cents in the dollar did I see from that, a big fat zero.

I did manage to claw back about 40% of all monies owing to me from the '90's "recession we had to have", fuck Paul Keating, but that was by other means, a whole story in itself, took over 12 months though.

So yeah, be thankful it's a small amount & learn by it. Sometimes for new clients (which is a rarity for me these days), I insist on COD for the first payment. Never be backwards in asking for your money.

[Rots]

I once tracked outstanding accounts from a client. In total it amounted to a little over $60k, that's a lot of money outstanding for a small franchise business (5 staff). Anywho, I compiled each account into a spreadsheet and sent a copy of the invoices to the client and eventually the money started filtering in. Luckily it was a nationwide client and to be fair, about $30k of it had been paid to head office who "omitted" to forward it on promptly...

I recently had a debt collector send me a letter for about $130. I kindly told them I don't pay the accounts, the insurers does. I also advised them that had the electrician submitted his invoices payable to the insurer as noted on the faxed instructions and 50 subsequent phone calls, they would have been paid by now. Some people just don't understand simple instructions like; Make your account payable to XYZ Insurer.

[Virtual-R]

Thanks Guys, I ended up getting it back Found out somebody in my family used to work for a debt collection agency awhile back, helped me write out a letter for payment with all the firm but reasonable tactics they use. Payment came in 2 weeks later

Definitely holding onto the letter for future reference lol

Billing process is now changed however, so it should stop anybody planning to do a dodgy from attempting it again.