What is the process for placing an account into collections? How do you do it, and what happens once you do? We’ve put together this handy step-by-step guide to show you the process in more detail. With this, you can see how Alexander, Miller & Associates would go about helping you collect what’s owed.
Step 1 – Decide on Collections
The longer a debt goes unpaid, the longer it’s likely to stay that way, so deciding on hiring a collections agency shouldn’t be something that you wait on. Particularly if it is a large balance account from a business, LLC or Corporation. If you are working on behalf of a company as well, it’s easier to hand it over to a group of people who will dedicate themselves to recovering your debt. It’s important to find the right collections agency for your needs, too. For example, finding an agency that provides regular status updates on the collections process and conducts a thorough investigation can offer you the assurance you need throughout the process.
Step 2 – Contact Us
The next step is to contact the agency you’ve decided on and arrange for them to handle the collections. Choosing the right agency is, as we’ve said, extremely important. Most agencies specialize in particular types of collection, and you should pick one that suits your particular needs. Do your research and ask around to see if people you trust have used any particular agencies before. For us here at Alexander, Miller & Associates, we handle commercial collections, so we have a full team of investigators and legal collections professionals experienced in handling claims between businesses.
Step 3 – Provide Information to the Agency
For the next step, most agencies will need to collect all the information you have about the debt and debtor. We’d usually be looking for contact information, details about the person in charge of the business you’re trying to collect from. We’d also need copies of contracts and agreements, communication records between you and the debtor, and anything else that might be relevant. If you’ve hired a lawyer or send your own demand letters, it’s important to share those as well. The more information agencies have to work with, the more we’ll be able to fully pursue outstanding debt. It also prepares us for anything a debtor might present during the investigation or collections process.
Step 4 – What the Collections Agency Will Do Next
The next step would be assigning a someone at the agency to oversee your case. They’ll review all of the documentation and decide on the next best steps. They’ll ensure that they understand the case fully and know exactly what the debt entails before moving forward. While it may vary by the case, one of the first things to do is simply call a debtor – you’d be surprised how often a phone call from a collections agency will make a debtor pay up or negotiate a new payment plan, which is good news for you.
Step 5 – Collections Process
Your collections agency should use every means at their disposal to recover your debt. This includes using the latest software and services, and in our case a whole network of private investigators that help us get the information needed to secure your debt collection. Agencies also typically have their own legal team looking into the debt and sending out letters where applicable. We may also visit the premises of the company that is in debt in order to try and talk to both the owners and employees face to face. And of course, we’ll keep you informed all throughout – providing regular updates until your debt is collected.
There you have it. The process for placing an account into collections is a relatively simple one – all of the hard work should be done by the agency, so you don’t have to worry about it. If you’re considering a collections agency for your outstanding collections cases, give us a call and see how we can help you get your money back.