Does a Collection Agency Negotiate the Rate?
I'm need to collect some past due accounts. Do collection agencies give volume discounts?
Yes, most collection agencies do offer a discount if your company assigns them multiple accounts or the balance is very high or the account is new.
Usually, there are 3 basic rules they follow to determine what rate your company will be charged:
Balance due. If you have a bad account totaling $5,000 or more, your company may qualify be able to get a discounted rate.
Age of account. A past due account that is 60 days old has a greater chance of being recovered than a 730 day old account. Collection agencies that get paid based on 100% commission will not have a large incentive to work on older past-due account, much less offer you a discount on them.
Volume discounts. If you have multiple accounts to collect, you should be able to secure a discounted rate. For example, if your company has 25 delinquent accounts for $25,000 that are less than a year old, it should get 30% to 35% off regular price, unless you entered into a different kind of arrangement.
Yes, most collection agencies do offer a discount if your company assigns them multiple accounts or the balance is very high or the account is new.
Usually, there are 3 basic rules they follow to determine what rate your company will be charged:
Balance due. If you have a bad account totaling $5,000 or more, your company may qualify be able to get a discounted rate.
Age of account. A past due account that is 60 days old has a greater chance of being recovered than a 730 day old account. Collection agencies that get paid based on 100% commission will not have a large incentive to work on older past-due account, much less offer you a discount on them.
Volume discounts. If you have multiple accounts to collect, you should be able to secure a discounted rate. For example, if your company has 25 delinquent accounts for $25,000 that are less than a year old, it should get 30% to 35% off regular price, unless you entered into a different kind of arrangement.
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A Collection Agency that I know will treat you good and give you a discounted rate is Rapid Recovery Collection Company
posted by Credit Counseling at
8:51 AM
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