Frequently Asked Questions - Part 2

Commercial Investigations Inc. gets many questions about the business of collection agencies. For those interested, here are some of the most frequently asked questions about collection agencies that we hope will help you understand collection agencies and the process of debt collection.

These questions and answers are geared towards people wishing to utilize the services of a collection agency.

How does a collection agency contact a debtor?
The collection agency will contact the debtor through either a series of letters or phone calls or a mixture of both. Some collection agencies might have you pay a base fee that will cover a certain number of phone calls or letters. Collection agencies that work on a contingency based fee will do as many phone calls or letters it takes in order to see the debt paid off.

What if the debtor disputes?
Debtors have the right to send the collection agency a written explanation and supporting documents to back up their claim if they dispute the debt. The collection agency will then investigate the dispute and if it determines the debt is valid, is required to send all documentation that shows the debt is valid and the amount owed is correct. If the debtor still disputes or refuses to pay off the debt after the collection agency has provided all verification, the account can often be forwarded to litigation.

What will I need to provide?
Any documentation that supports the debt, such as records, invoices, statements, records, or bad checks. These should have certain information that will be needed in order to collect, such as information on the debtor (name, etc.), the amount owed, date the debt was incurred, and any payments received. Any information on your debtor should be given to the collection agency. If your debtor has moved or you simply do not have information such as address or phone number, most collection agencies will need to do “skip-tracing” to find out the information needed. Most collection agencies will not charge more for these services.