Outsourcing bad debt recovery is smart, because it not only minimizes the risk of lawsuits, but it also reduces overhead cost. When you try to collect bad debt outside of your normal job function, you are putting your business in harm’s way. Debt collectors follow stringent laws that protect the consumer and if you are unaware of these laws, you should outsource to a collection agency.

There’s much more to it than just sending letters. A good collection agency has state-of-art technology that can easily identify a debtor’s information so they can track and connect with the right person. The right technology and certified collectors have a direct effect on recovering your money. If you don’t know the current consumer laws or have the right technology, it would be in your best interest to outsource your accounts receivables (A/R).

If you decide to outsource to a collection agency, it’s very important that once an account is 30 days past due to immediately place that bad debt with your collection agency. When accounts start aging after 120 days it’s harder to recover that bad debt. The sooner is always better as accounts that are 30 to 60 days past due perform much better when it comes to recovering your money!

United Collection Service is a top performer for 14 years and for good reason. We are professional, ethical and we treat every person with kindness. We are deeply tied in the medical industry and many patients fall on hard times, but we want them to remain your patient for a long time and our collection methods allow this to happen. Strong arm tactics are old school and are unethical to say the least. Unfortunately, these tactics are still being used today. The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits debt collection companies from using abusive, unfair and or deceptive practices to collect debts from consumers. You can learn more about the FDCPA by visiting the Consumer Financial Protection Bureau.

There’s no shame in having bad debt, it happens to many of us. Most collection agencies will work with you to help you pay your bad debt. You should never try to dodge a collection agency as it can escalate and impact your credit score. It can take several years to build your credit with the 3 credit bureaus. It’s best to work with the agency to prevent this from happening. When was the last time you checked your credit score? You can get your free credit score by visiting Credit Karma.