debt recovery

After two billing cycles of non-payment, pursuing customers for overdue overdraft fees becomes cost-inefficient for banks. It is much more economical and less stressful to employ a collection agency to issue five initial reminders as the first-party, followed by five third-party legal demands to your customer over a 90-day period. This fixed-fee service of 10 contacts is priced at approximately $18 per account, which breaks down to less than $2 per communication attempt. Accounts that remain unpaid can  be further sent for traditional collections where a debt collector makes multiple calls to recover the fee.

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Serving banks and credit unions nationwide

Despite these adjustments, U.S. banks collected $7.7 billion in overdraft/NSF fees in 2022, a significant decrease from the peak of $11.97 billion reported in 2019.  The imposition of overdue overdraft fees, while financially beneficial for banks in the short term, can lead to several disadvantages in the long run.

• One significant drawback is the potential damage to customer relationships. High fees or aggressive collection practices can lead to dissatisfaction, eroding trust and loyalty, which are crucial for customer retention. This dissatisfaction may prompt customers to switch to competitors, resulting in a loss of business.
• Moreover, excessive reliance on fees for revenue can attract regulatory scrutiny, as authorities seek to protect consumers from unfair banking practices. Such scrutiny can lead to regulatory actions, fines, or mandates to change practices, impacting the bank’s operations and reputation.
• Additionally, the administrative burden of managing and collecting overdue fees can be substantial, diverting resources from more productive activities.

Collection agencies offer a variety of products and services designed to assist banks and other financial institutions in recovering overdue debts, such as overdraft fees.

1. Debt Collection Services

• Direct Collection: Traditional debt collection efforts involving phone calls, letters, and emails to debtors to negotiate repayment of overdue overdraft fees.
• Legal Collection: For accounts that are significantly overdue and unresponsive to standard collection efforts, some agencies offer legal services to pursue debt recovery through the court system.

2. Skip Tracing

• Agencies use advanced databases and search techniques to locate debtors who have moved or are otherwise difficult to contact, ensuring that efforts to recover the overdraft fees can continue.

3. Credit Reporting

• Collection agencies can report unpaid debts to credit bureaus, which can motivate debtors to settle their debts to avoid negatively impacting their credit scores.

These services are tailored to navigate the complexities of debt recovery while maintaining compliance with legal standards and preserving customer relationships.

Online service providers face unique challenges in ensuring they have the legal right to recover money if their bills are not paid. Proper documentation and clear terms of service are critical in these situations. Here’s how online service providers can prepare and what kind of documentation they should have in place:

1. Service Agreement/Contract: This is the foundational document that outlines the nature of the services provided, payment terms, and obligations of both parties. It should be detailed and clear, specifying the amount to be paid, payment deadlines, and any penalties for late payments. The agreement should be accepted by the customer, ideally through a clickwrap agreement (where users click to agree) or sign-in process that requires agreement before services are provided.
2. Utilizing Electronic Signature Services for Authenticity: Companies like RightSignature and Docusign offer electronic signature services that are instrumental in proving the authenticity of agreements and contracts. These platforms provide a secure and legally recognized way to obtain signatures on service agreements, contracts, and terms of service documents electronically. The use of such services adds a layer of verification and non-repudiation, as they often include time stamps, IP address logging, and email confirmation to track who signed the document and when. This can be particularly useful in legal disputes or collection efforts, as it provides irrefutable evidence that the customer agreed to the terms, including payment obligations. RightSignature and similar platforms ensure that electronic agreements are as legally binding as their paper counterparts, adhering to laws such as the U.S. Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA), among others globally. Incorporating electronic signature technology into the contract and agreement process not only streamlines operations but also strengthens the legal enforceability of online transactions. Email a copy of this digital contract to their email address.
3. Tele-Verification of the Client: Implementing tele-verification as part of the client onboarding process can significantly enhance the authenticity and reliability of the client information. This involves contacting the client via telephone to verify the details provided during the signup or agreement acceptance phase, such as their name, contact information, and payment details. Record this conversation with their consent. Tele-verification serves multiple purposes: it confirms the client’s identity, ensures that the contact information is accurate and operational, and provides an additional layer of consent for the services and payment terms. For instance, during the call, the service provider can reiterate key terms of the agreement, confirm the client’s understanding and acceptance, and answer any immediate questions. This process not only strengthens the legal standing of the agreement by adding a verbal confirmation but also enhances customer service and establishes a direct line of communication with the client. Documenting the outcome of the tele-verification call, including the date, time, and summary of the conversation, further solidifies the contractual agreement and can be invaluable in case of disputes or collection efforts.
4. Terms of Service/Use: The Terms of Service (ToS) or Terms of Use document should outline the legal terms and conditions that the user agrees to for using the service. It should include payment terms, the consequences of non-payment (such as service termination or collection actions), and data use policies. It’s crucial that users explicitly agree to these terms, often achieved through a checkbox or acceptance button during signup or checkout processes.
5. Invoices and Payment Records: Keeping accurate and detailed records of invoices and payments is essential. Invoices should include service dates, amounts due, payment deadlines, and a clear description of the services provided. Payment records should document any payments received, including the date, amount, and method of payment. In the case of a dispute or collection effort, these records serve as evidence of the debt owed.
6. Communication Records: Document all communications with the customer regarding the account, especially those related to billing inquiries, payment reminders, notices of overdue payments, and any agreed-upon payment plans or resolutions. This can include emails, letters, and even logs of phone conversations. These records can demonstrate attempts to resolve the issue amicably and the customer’s awareness of the debt.
7. Proof of Service Delivery: Depending on the nature of the online service, providers should maintain records that prove the customer received and used the service. This could be logs of user activity, delivery confirmations for digital products, or acknowledgments of service received. This documentation is crucial to counter any claims that the services were not rendered as agreed.
8. Privacy Policy and Data Use Agreements: While not directly related to payment recovery, having a clear privacy policy and any necessary data use agreements in place is essential for legal compliance. These documents should detail how customer data is collected, used, and protected, and comply with regulations like GDPR or CCPA where applicable. Violations can lead to legal issues that complicate collection efforts.
9. Dispute Resolution and Governing Law Clauses: Including clauses in your contracts or terms of service that specify how disputes will be resolved (e.g., arbitration, mediation) and under what jurisdiction’s laws the contract is governed can streamline resolving any disputes that arise, including non-payment issues.

By preparing these documents and ensuring they are correctly executed and maintained, online service providers can establish a clear legal basis for the recovery of unpaid bills. It’s also advisable to consult with a legal professional specializing in online commerce to ensure all documents and procedures comply with applicable laws and regulations, offering the best protection in case of non-payment.

Schools often hire a debt collection agency to collect late payments like unpaid lunch money, damage costs, library fines, technology fees, or other charges. Partnering with us, school districts can anticipate that our collections process aligns with their values, legal requirements, and financial goals.

We know schools are tight on budget. We offer low-cost services designed especially for schools, easy to use and zero on boarding fee. Serving school districts nationwide. 

Contact us to ethically recover your unpaid student bills.

Here are the expectations of schools from a collection agency:

1. Compliance with Laws and Regulations: School districts expect Collection Agency to strictly adhere to all applicable federal, state, and local laws and regulations. This includes compliance with the Fair Debt Collection Practices Act (FDCPA), which outlines standards for the treatment of debtors, and any education sector-specific laws.
2. Ethical Practices: Given the educational context, districts anticipate that we will employ ethical and respectful practices in dealings with families and individuals. This means avoiding aggressive or harassing tactics and ensuring that communications are conducted professionally and with empathy.
3. Transparency: Districts require transparency from Collection Agency in its operations, including clear reporting on collection efforts, accounts receivable, and success rates. This transparency helps the district gauge the effectiveness of our efforts and manage its finances accurately.
4. Efficiency and Effectiveness: Districts expect us to effectively recover unpaid debts promptly, employing proven debt recovery strategies, demonstrating a high success rate, and minimizing the collection timeframe.
5. Confidentiality and Security: Protecting the privacy of students and their families is paramount. Collection Agency must ensure the confidentiality and security of all personal and financial information, complying with laws like the GLBA, FERPA and the Health Insurance Portability and Accountability Act (HIPAA), where relevant.
6. Customized Services: Schools may have specific preferences for how collections are handled, including communication methods and timing. A collection agency is expected to tailor its services to meet these specific needs.
7. Customer Service: A Collection Agency should provide outstanding customer service to both the school district and the individuals from whom it is collecting. This includes being responsive to inquiries, resolving disputes fairly, and offering necessary assistance.
8. Minimal Disruption: The collection process should cause minimal disruption to the educational environment and the school district’s operations. A collection agency should handle the majority of the collections process independently, requiring minimal involvement from school staff.
9. Affordable and Reasonable Fees: With budget constraints a constant consideration for school districts, the fees charged by Collection Agency are expected to be reasonable and transparent. The cost of collections should not outweigh the amount recovered.
10. Positive Representation: Since the Collection Agency acts as an extension of the school district, its actions and communications can reflect on the district. Schools expect us to maintain a positive image and uphold the school district’s reputation within the community.

By selecting us, school districts typically undertake thorough vetting, including checking references, reviewing success rates, and ensuring that our practices align with the district’s values and legal responsibilities.

Debt recovery for small business involves hiring a collection agency that offers low cost products, delivers high recovery rates without damaging your business reputation. We are a highly-regarded collection agency, offering meticulously crafted services to help you recover the maximum amount from your outstanding bills. Serving thousands of businesses nationwide.

We offer free credit reporting, free bankruptcy screening and free skip tracing service. There is no joining fee, no minimums and no obligation to submit a minimum number of accounts annually. We also red-flag a debtor if we find he has the history of suing businesses like yours in the past. All accounts are managed through our secure online client portal.

Our Online Ratings

4.85 out of 5.0    1500+ Google reviews

BBB RATING A+

Contact us to recover unpaid bills:

Service Options:

Option A: Fixed-Fee Collections – Written Legal Demands

This option requires purchasing a batch of accounts in advance. You retain 100% of all recovered funds. We send 5 attorney-approved written demands to your debtors under our name (1 account = 5 contacts). This method is most effective for bills less than 1 year past due. Unused accounts do not expire. After consulting with your accountant, most clients can typically write off this cost as a business expense on their taxes. Cost of each account varies from $10 to $27 per account depending on the accounts purchased. This service is perfect for small businesses who are looking for low cost recovery service.

Option B: Contingency Collections – Collection Calls

This option involves a professional debt collector making multiple calls to your debtor. There are no upfront fees. We only earn if we collect, retaining 40% of the recovered amount while you keep 60%. This service is advised for accounts aged between 120 days and 3 years, irrespective of the balance. Accounts can be further forwarded for Legal Collections after taking your approval.

Hiring us offers key benefits for businesses: it eases the burden on staff, cuts down on internal collection costs, and lets companies focus on customer relations, thereby improving operational efficiency and maintaining positive client relationships.

We serve over two thousand of healthcare providers across the nation, including hospitals, urgent care centers, dental offices, senior living communities, physicians and ambulance services in all 50 states. Our focus is on achieving outstanding recovery rates.

Need a Medical Collection Agency: Contact Us

Our priority is to protect your reputation while we collect payments from patients. We ensure that your patients are treated with respect and dignity, applying only the minimal amount of pressure legally allowed during the collection process. Both clients and patients consistently find our services user-friendly and easy to navigate.

Our debt recovery methods are strategically designed to expedite debt retrieval while maintaining cost-effectiveness.

We take pride in being the highest-rated Medical Collection Agency on Google, with an impressive rating of 4.87 out of 5 from over 2,200 reviews. We’ve also established a user-friendly client portal, enabling you to add debtors at your convenience.

Start Recovering:

Four-Step Debt Recovery Process:

STEP 1: Flat Fee Reminders – Connect Phase Step 1
If your practice lacks time for patient reminders, we can help. We make two calls and send three letters on your behalf, not as a collection agency, for a flat fee of $16 per case. Your practice keeps 100% of what is collected.

STEP 2: Flat Fee Collections – Connect Phase Step 2
Demands are sent on the collection agency’s own letterhead for a flat fee of $16 per case, making patients more likely to pay. Your practice keeps 100% of collections, and payments are made directly to your office. Five letters are sent, one every 10 days.

STEP 3: Intensive Collections – You Keep 60% of Amount Collected – No Upfront Cost
For the small minority who do not pay in Step 2, we transfer these accounts to our intensive collection group. Our friendly agents call persistently with the goal of working with your client to pay the debt owed. In this stage, you keep 60% of the amount collected.

STEP 4: Legal/Litigation – 50/50 Split and No Attorney Fees
We conduct a full financial assessment of each debtor. If legal action is needed, we request your authorization to proceed. If approved, we file the lawsuit and pay your practice 50% of the awarded amount.

Unique features of our Medical Collection Agency

Low-Cost Fixed-Fee Service: Your unused accounts remain active without expiring. Standard Contingency Service: We operate on a “no recovery, no fee” basis. Legal Collections: Utilizing a national network of attorneys, we efficiently handle legal suits for recovering your dues. Compliance: Our services strictly adhere to State and Federal laws, including HIPAA, GLBA and FDCPA. Additional Free Services: This includes Credit Bureau Reporting, Bankruptcy Screening, and a Litigious Debtor Check to identify individuals with a history of suing businesses or medical practices like yours. Nationwide Licensing: We are licensed across all 50 states and Puerto Rico, ensuring seamless handling of cases even if your patient relocates. Bilingual Collections: We offer collection services in both English and Spanish. Free Skip Tracing: We provide this service at no extra cost to locate patients who have moved, are hiding, or are otherwise unreachable. Top-Notch Accreditation: Our BBB Rating stands at an A+. Data Security: We consistently meet SSAE 18 SOC 1 Type 2 data security standards, ensuring your data is always protected. Transparent Pricing: We guarantee no hidden fees, no setup fees, and provide an easy-to-use secure client portal. Personalized Support: Each client is assigned a dedicated account manager/sales representative, along with a central toll-free support number. Flexible Usage: We impose no minimums and offer services on an as-needed basis. Athena-health Interface: This is available at no additional cost. Bulk Account Submission: Accounts can be submitted one by one or even in bulk using an Excel spreadsheet. Online Management: You can access recovery reports, submit payments, and view monthly statements online without needing to call us. Proven Track Record: We serve thousands of dental and medical practices, and references are readily available upon request.