debt recovery

When interviewing a collection agency, ask about their experience, methods, and success rates. Ensure they align with your business values and needs. There are clever and quick ways to find this our without spending too much time.

How to Check if a Collection Agency Will Not Destroy Your Reputation

Start by reviewing their online ratings. If an agency has a strong Google rating, it’s a sign they approach collections with respect and diplomacy. An agency that values its own reputation is likely to protect yours as well.  A good rating will also alleviate several other concerns.

Data Security and Compliance Check

Request the names of their top 10 clients to gauge their credibility. If you recognize some well-known companies among their clients, it indicates these companies likely conducted their own thorough due diligence before hiring the agency. This recognition can save you time by providing confidence in the agency’s credibility without needing to dive into every detail.

Also, ask for written documents about their policies on compliance and data security. If they verbally assure you without providing written documents, it likely means they don’t have a clear policy. Definitely check the documents that you feel are important, but probably need to read every single document —this is just a smart check to ensure the agency is reliable, secure, and aligned with your compliance needs.

Here are the documents to ask for:

• Company Compliance Management
• Collection Policies and Procedures
• FDCPA Training and Testing
• Consumer Financial Protection Bureau Compliance
• Quality Assurance and Auditing
• State-Specific Restrictions (FDCPA+)
• Fair Credit Reporting Act (FCRA) Compliance
• Dispute Procedures
• Communication Policies (Telephone, Email, Texting)
• Legal and Regulatory Compliance
• Statute of Limitations
• Data Security Policies
• SOC 1 Audit Certificate
• Information Security (Infosec) Policy Agreement
• Intrusion Detection
• Disaster Recovery Plan
• GLBA Security Compliance

If they provide clear, documented procedures, it shows they are serious about protecting your data and adhering to regulations. These documents can also serve as a reference in case of future disputes.

Do they have a Good Customer Service?

Good customer service is crucial when hiring a collection agency, especially if this is your first experience with collections. Questions will undoubtedly arise, and having reliable support ensures you get the help you need when you need it.

A single point of contact is ideal. If they mention a toll-free customer service number, request it and test it during business hours. Check how quickly you reach someone—ideally within 2-3 minutes. If prompted to leave a voicemail, note how soon you receive a callback.

Inquire if they offer one-on-one client portal training and if there are PDF or Video tutorials available. While you don’t need to review these in detail, this will help you gauge their commitment to customer service.

Do they offer Fixed-Fee Written Demands?

Collection agencies do not make much money in collection demands service, however this is a great deal for clients who have debts less than 6 months old. Going purely for contingency collections can potentially increase your cost by many folds. Contingency collections is more cost-effective for accounts more than 6 months old.

Is the Collection Agency Licensed to Collect in all 50 states?

It’s crucial that collection agencies operate with national licensing, ensuring consistent standards and oversight across all states. Unfortunately, agencies without this license often resort to partnering with local agencies, potentially leading to your sensitive data being shared with multiple entities without your explicit consent. This fragmented approach raises concerns about data security and privacy, underscoring the need for comprehensive national licensing in the collection industry.

Do they Perform a Litigious Debtor Check?

Most collection agencies perform standard checks like skip tracing, bankruptcy verification, and credit reporting. However, few dive into a debtor’s litigation history. It’s crucial to recognize that pursuing collections from someone prone to suing can be risky and resource-intensive. If the outstanding amount is relatively small, it might be prudent to avoid the potential legal entanglement and write it off as a loss.

These are smart checks which ensure that you are hiring a good collection agency and not the one who is ready to cut corners.

A concept known as Behavioral-Economics combines psychology and economics to better understand how people make decisions. By using these insights, debt collection agencies can improve recovery rates in ways that are more effective and empathetic.

Here’s how you can apply these principles to make debt collection work better:

1. Make Payment Plans the Default Option

• Default Payment Plans: Imagine you owe money on a loan. Instead of asking how you want to pay it back, the collection agency automatically signs you up for a 12-month plan. You can opt-out, but because it’s already set up, you’re more likely to stick with it.
• Automatic Payments: A credit card company could set up a system where payments are automatically taken from your bank account unless you choose to stop it. This reduces the chances of you missing a payment.

2. Frame Information in a Positive Way

• Positive Framing: Instead of saying, “You still owe $500,” a company might say, “You’ve already paid off $500! Only $500 left to go.” Focusing on what you’ve already achieved makes paying the rest feel easier.
• Break Down Payments: If you owe $600, breaking it down into $100 monthly payments can make the debt feel less overwhelming and easier to manage.

3. Show What Others Are Doing

• Highlight Success Stories: A collection agency might tell you, “Thousands of people just like you have successfully paid off their debts with our plans. You’re close to being debt-free!”
• Peer Comparisons: They could also say, “Most people in your situation have already made their first payment. Would you like to do the same today?” This makes you feel like paying off your debt is the normal thing to do.

4. Help People Manage Their Money

• Segregate Payments: Suggest that people set aside money from their tax refund or bonus specifically to pay off debt. This makes it easier to think of that money as already “spent” on debt.
• Goal Setting: Encourage setting small, specific goals like, “Pay off $500 in the next three months.” Reaching these goals feels good and motivates you to keep going.

5. Offer Small Rewards for Paying Early

• Incentives for Early Payment: If you pay off a store credit card balance early, you might get a 5% discount. This reward can make paying sooner more appealing.
• Gamification: A mobile app could turn debt repayment into a game where you earn badges or small rewards for making regular payments.

6. Make Paying Easy

• Flexible Payment Options: Companies could offer multiple ways to pay, like using a credit card, PayPal, or bank transfer. The easier it is to pay, the more likely you are to do it.
• Payment Reminders: A simple reminder like, “Your $75 payment is due in 3 days—stay on track to becoming debt-free!” helps you remember to pay without making it feel like a big deal.

7. Create a Sense of Commitment

• Commitment Contracts: You might be asked to sign a simple agreement that says, “I agree to pay $100 per month until my debt is cleared.” Signing this makes you feel more committed to following through.
• Public Commitments: If you tell a friend or family member that you’re planning to pay off $1,000 in the next three months, you’re more likely to stick to that plan because you don’t want to go back on your word.

8. Create a Sense of Urgency

• Limited-Time Offers: A car loan company might offer, “Pay off your balance within the next 10 days and get a 10% discount.” This limited-time deal encourages you to act quickly.
• Scarcity of Resources: A collection agency could say, “We have a limited number of slots for negotiating a reduced payment plan. Contact us soon to secure your spot!” This makes you feel like you need to act now.

9. Encourage People to Take Ownership

• Highlight Ownership: A mortgage company might remind you, “You’ve already invested so much in your home—keep up with your payments to protect your investment.” This makes you feel like you’re protecting something valuable that you already own.
• Ownership of Progress: A collection agency might say, “You’ve already reduced your debt by $2,000. Keep going to eliminate it completely!” Highlighting progress can motivate you to finish what you’ve started.

10. Keep Communication Simple and Consistent

• Simplify Information: A medical billing service could send a statement that clearly says, “Your total due is $300. Pay this off in three $100 payments over the next three months.” Simple and clear communication makes it easier to understand and act on.
• Consistent Messaging: If a utility company sends regular reminders like, “Avoid late fees—set up auto-pay today!” you’re more likely to remember and take action because the message is clear and repeated.

11. Prioritize Transparency and Fairness

• Clear Fee Disclosure: Instead of burying fees in fine print, a lender could state upfront, “This loan has a $25 origination fee, but no hidden charges.”
• Transparent Communication: A debt collector might say, “We understand times are tough. Let’s discuss a payment plan that works for you, with no surprises.”

12. Utilize Data-Driven Personalization

• Tailored Plans: Based on past behavior, a lender might offer one person a longer repayment term, while another might get a lower interest rate for early payoff.
• Communication Preferences: Some people respond better to emails, others to text messages. Analyzing this data lets collectors reach people in the way they prefer.

These strategies help debtors manage their payments more easily and encourage them to stay on track, which benefits both the debtor and the creditor.

Imagine lending a friend money for a weekend trip. They promise to pay you back, but they ghost you. It’s annoying, right? Well, it’s similar with doctors and hospitals, except it’s for medical services instead of a vacation.

Medical Debt Collection: A Guide for Patients

1. Bill Reminders: The doctor or hospital sends reminders like, “Hey, remember that bill? Time to pay up!”
2. Internal Collection Efforts: If the patient doesn’t pay, the provider might call and try to work out a payment plan.
3. Enter: CA-USA Collection Agency: If that fails, the healthcare provider might bring in a Collection Agency partner specializing in ethical and compliant debt recovery.

When a collection agency like CA-USA gets involved, it often signals to the patient that the matter has escalated, making them more likely to take the debt seriously and address it promptly.

Why Healthcare Providers Choose us:

• Expertise: Our team of experts knows the ins and outs of medical debt collection laws and regulations, ensuring a smooth and compliant process for both the healthcare provider and the patient.
• Time and Money: We free up valuable time and resources for healthcare providers, allowing them to focus on patient care rather than chasing unpaid bills.
• Higher Recovery Rates: We have a proven track record of successful debt recovery, maximizing the chances that healthcare providers receive payment for their services.
• Legal Protection: We are well-versed in debt collection laws like the Fair Debt Collection Practices Act (FDCPA), HIPAA, and GLBA, ensuring that patients’ rights are protected throughout the process.

Patients have Rights too:

Even when CA-USA is involved, the patient still has rights. The FDCPA prevents us from harassing or threatening the patient. We are committed to treating patients with respect and following the law. Plus, medical debts under $500 won’t immediately tank a patient’s credit score.

HIPAA & GLBA: Your Privacy Matters:

We strictly adheres to HIPAA and GLBA, safeguarding patients’ health and financial information. This ensures that sensitive data remains confidential and secure.

Our Commitment to Patients:

We understand that medical debt can be stressful. That’s why they work with patients to find solutions, such as flexible payment plans or financial hardship programs, whenever possible.

Open communication can lead to a positive resolution for both parties. And remember, our involvement could be the push needed to resolve the debt and regain financial peace of mind.

Engage in open and empathetic communication to understand the debtor’s financial situation, including their income, expenses, and any hardships they may be facing. This helps in tailoring a suitable payment plan or settlement offer.

Offering Flexible Payment Plans:

Propose payment plans that are flexible and manageable for the debtor. This may include smaller, more frequent payments or extending the payment period to reduce the monthly burden.

Settle in Full Authority (SIF):

Offer a lump-sum settlement option where the debtor can pay a reduced amount in one or a few large payments to settle the debt in full.

So let’s say, if client has authorized you to settle an account for a lower balance then use that as a negotiation tool. Example if a client has provided SIF of 80%, then if the collector feels that it is better to get paid $800 now (or never) on a $1000 debt, you may offer that choice to the debtor.

Being Transparent and Honest:

Clearly explain the terms of the payment plan or settlement, including any consequences of non-payment, to ensure that the debtor fully understands and agrees to the arrangement.

Incentivizing Early Payments:

Provide incentives for early or prompt payments, such as discounts on the total amount owed or waiving any interest and fees if the debtor agrees to a quick settlement.

Regular Follow-Up:

Maintain regular follow-up with debtors to remind them of upcoming payments and to provide support or adjustments to the payment plan as needed. This can help keep them on track and motivated.

Utilizing Technology:

Use technology and offer online payment portals, and tracking tools that make it easier for debtors to manage their payments.

A  collection agency must utilize advanced technology and tools for debt collection, including automated communication Texting/Email as permitted by law, secure data management, 3rd Party Collections Agency and integration capabilities with AthenaHealth and a few other EHR’s through API’s.

Technological Capabilities

• Manage all your accounts online 24/7 using our easy to use client portal ( Submit, Update and Stop accounts online, provide backup documentation, view invoices and add/remove additional users online.)
• Two factor authentication is mandatory for login.
• Manage multiple locations using a single login. Switch between individual location using a simple dropdown box. Ability to set up clients as Master-Sub.
• Ability to upload accounts in a batch using Microsoft-Excel or through Sharefile.
• Online Reporting capabilities and view collection status of each account.
• Capability to set up and manage payment plans for debtors.
• Intuitive dashboard view for real-time monitoring of collection performance, outstanding amounts, and other key metrics.
• SSL (Secure Sockets Layer) is used to encrypt data when it is transmitted over the internet.
• Tools to manage and resolve disputes with debtors efficiently.
• Access to Client Portal FAQs, and simple PDF tutorials.
• Fortigate Cloud Firewall, VMWare Domain Controller and VPN mandatory for staff handling sensitive data.
• For fixed fee services, payments are accepted secure using Paypal/payscout in a PCI compliant manner.
• For contingency fee services, your portion of the money can be directly deposited in to your bank electronically using ACH. However if you prefer physical check, we can do that too.
• For fixed fee services, accounts purchased master client number can be used by various Locations/Subs under it.

Customer Service

• An account representative is assigned to each client for personalized service who acts as a single point of contact to address any concerns promptly. Email, call or text.
• Access to the central client customer support number if required.
• Comprehensive onboarding sessions to familiarize clients with the portal, processes, and services. Interactive Zoom/MS teams training available as many times as you want.

Value Added Services

• Free Bankruptcy screening on all accounts submitted.
• Free Credit Bureau reporting in contingency collections.
• Free Change of Address check ( USPS check in Step 1 & 2 and Skip tracing in Step 3 & 4).
• Free Litigious patient check. ( protect you from debtors who have a history of suing)
• We can perform debt collections in both English and Spanish.
• Share industry best practices and insights to help clients enhance their collection strategies.
• Garnish wage, Identify and locate assets of debtors for potential recovery during legal step.

Medical staff often lack the time to follow up on unpaid patient invoices, usually because they are short-staffed or focused on their primary responsibilities. Collecting medical debt requires a delicate balance of recovering outstanding balances while maintaining positive patient relationships.

We believe treating patients respectfully, even during the collections process. Aggressive collection tactics damage both your reputation and ours, while also reducing recovery rates. Debtors are more likely to engage and cooperate with collectors who are persistent, friendly, and use diplomatic strategies to recover payments

Understanding Florida’s Debt Collection Landscape

Navigating Florida’s specific laws, including the Florida Consumer Collection Practices Act (FCCPA), can be complex. We have extensive experience operating within these regulations, ensuring all collection activities comply with both federal and state laws.

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How CA-USA Inc. Can Help Your Practice

1. Verification and Compliance: We ensure compliance with HIPAA and other relevant regulations.

2. Personalized Communication: Adopt a personalized approach to communication, prioritizing respectful and empathetic interactions with patients.

3. Flexible Solutions: Work with patients to develop flexible payment plans or settlements, facilitating debt resolution without resorting to legal action.

4. Transparent Reporting: Provide transparent reporting on collection activities, keeping healthcare providers informed about the progress of each account.

5. Technological Expertise: Utilize advanced technology to streamline the collection process and protect patient data, adhering to strict security protocols.

Why Choose Us?

• Licensed and Experienced: We are fully licensed to collect medical debt in Florida and boasts a proven track record of successful recoveries.
• Ethical and Compliant: Adhere to the highest ethical standards and complies with all relevant laws and regulations.
• Patient-Focused: We prioritize patient satisfaction and strive to maintain positive relationships throughout the collection process.
• Transparent and Efficient: We provide transparent reporting and utilizes cutting-edge technology to streamline the collection process.

If you are a healthcare provider in Florida struggling to collect outstanding medical debt, consider partnering with us. Their expertise, professionalism, and commitment to patient satisfaction make them a reliable partner for your practice.