Can I Negotiate Debt Collection Rates?
I'm always looking for ways to cut costs. Do collection agencies give discounts?
Yes, most collection agencies do offer a discount if your company assigns them multiple accounts or the balance is very high or the account is new.
Generally, there are three rules to follow to determine what rate your company will be charged:
Balance due. If you have a past due account totaling $5,000 or more, your company might be able to get a discounted rate.
Age of account. A past due account that is 60 days old has a greater chance of being recovered than a 730 day old account. Collection agencies that get paid based on 100% commission will not have a large incentive to work on older past-due account, much less offer you a discount on them.
Volume discounts. If you have a lot of accounts to collect, you should be able to secure a smaller rate. For example, if your company has 25 past due accounts for $25,000 that are less than one year old, you should get 30 percent to 35 percent off regular rates, unless you entered into a different kind of arrangement.
Yes, most collection agencies do offer a discount if your company assigns them multiple accounts or the balance is very high or the account is new.
Generally, there are three rules to follow to determine what rate your company will be charged:
Balance due. If you have a past due account totaling $5,000 or more, your company might be able to get a discounted rate.
Age of account. A past due account that is 60 days old has a greater chance of being recovered than a 730 day old account. Collection agencies that get paid based on 100% commission will not have a large incentive to work on older past-due account, much less offer you a discount on them.
Volume discounts. If you have a lot of accounts to collect, you should be able to secure a smaller rate. For example, if your company has 25 past due accounts for $25,000 that are less than one year old, you should get 30 percent to 35 percent off regular rates, unless you entered into a different kind of arrangement.
About the Author:
One Collection Agency that I know will treat you good and give you a great rate is Rapid Recovery Collection Company
posted by Debt Consolidation Loan at
4:07 AM
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