Does a Collection Agency Negotiate the Rate?
I'm always looking for ways to cut costs. Do collection agencies give 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.
Typically, there are 3 rules to follow to determine what rate your company will be charged:
Balance due. If you have a delinquent account totaling $5,000 or more, your company should be able to get a discounted rate.
Age of account. An account that is 60 days past due has a better chance of being collected than a 730 day old file. A Collection agency that get paid based on how much they collect will not have enough incentive to work on older past-due accounts, much less offer you a reduced rate 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.
Typically, there are 3 rules to follow to determine what rate your company will be charged:
Balance due. If you have a delinquent account totaling $5,000 or more, your company should be able to get a discounted rate.
Age of account. An account that is 60 days past due has a better chance of being collected than a 730 day old file. A Collection agency that get paid based on how much they collect will not have enough incentive to work on older past-due accounts, much less offer you a reduced rate 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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One Collection Agency that i personally know will treat you good and give you a great rate is Rapid Recovery Collection Company
posted by Credit Counseling at
1:09 PM
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