Why should I use a Collection Agency?
A debt collection agency is a specialized business that collects past due debts. The collectors at a
professional collection agency are knowledgeable about collecting past due debts and have resources which
allow them to work effectively and efficiently. You may find it is a very challenging process to maintain a
collection recovery effort in-house, particularly if you do not have experienced collectors and access to the
proper tools. AFS can ease this burden and reduce your office costs.
What practices are commonly used by collection agencies to recover debt?
Some collection agencies may offer a pre-collection service called a pre-collect letter. This letter informs a
debtor that payment is necessary or the account will be placed with a collection agency. Once accounts are
officially placed in collection, collection agencies are required under the Fair Debt Collection Practices Act
(FDCPA) to send a letter that informs the debtor that the account has been placed with a collection agency.
This first collection letter gives the debtor the opportunity to dispute the debt and to request a copy of the
invoice or a copy the judgement if legal action was taken. A debtor may be motivated to pay after receiving a
letter from a collection agency since a collection on their credit file may impact their credit score. After
sending the first collection letter, collection agencies may report the account as a collection account to one or
more of the credit bureaus - Experian, Equifax, and TransUnion. If payment is not received within a specified
amount a time after the collection letter is sent, collection agencies might send further letters and/or attempt to
contact the debtor by phone. From a debtor's response to letters and/or phone calls, experienced collectors
can determine the likelihood that the debtor will pay their debt. When it is clear that the contact information for
a debtor is outdated, collection agencies may have access to resources and techniques to locate a debtor
(skiptracing) and can proceed with the collection activities. Collection agencies may also have the means to
identify a person's assets and work status. This information is beneficial when it is necessary to consider legal
action to collect payment. If a debtor does not pay using the previously mentioned techniques and it is likely
that a debtor has the means to pay a debt, many collection agencies have the resources to initiate legal
action against a debtor. When legal action results in a successful judgement, collection agencies may provide
continued services to ensure payment is made.
When should I place an overdue account with an agency?
The ability to collect decreased the longer recovery is delayed. Therefore, it is recommended that overdue
accounts be placed with an agency as soon as possible. When there are signs that a bill will not be paid -
such as when mail is returned, telephone calls are not answered or a telephone number is disconnected, or a
debtor promises payment but then does not pay - aggressive collection should be initiated immediately.
How do I know if AFS Collection Agency is right for my company?
Contact our office by phone, fax, or e-mail for a free, no obligation consultation. One of our partners will set
up a time at your convenience to discuss your specific needs. We can send you information about placing
accounts with AFS and our staff will gladly answer any questions you may have.
What is the minimum number of accounts required to be a client and how much is the set up fee?
There is no minimum balance or number of accounts required and there is no set up fee.
What are your rates?
AFS fees are competitive compared with other agencies. Collection agency rates are usually based on the
type of debt, the age of the debt, and the balance owed. Since our rates are also based on these factors, we
are unable to list specific rates online. Please call or e-mail our office and we can provide you with more
information on our rates.
How soon are collections initiated?
Our staff will begin processing your accounts immediately upon receipt. An acknowledgment will be sent to
your office listing the files and balances that were entered into our system. The first collection letter is sent
If you have a question that has not been answered above, please do not hesitate to contact us for more
This is an attempt to collect a debt; any information will be used for that purpose.