How do I know when I need to place an account with a collection agency?
You should place accounts with a collection agency when:
- The phone is disconnected
- Mail is being returned and certified mail is unclaimed
- The debtor has moved and/or is out of business
- All in house collection efforts have been exhausted
Once a collection agency has been decided on, the information on the customer can be faxed, mailed or called in, using the form provided to you by the agency. If you have many accounts some agencies will accept spreadsheets of customers.
Once the account has been placed with an agency, you must close the account and stop adding finance charges. Do not continue to send invoices or statements. Make a note on the customers account that they have been placed for collection.
If the customer calls you, you MUST refer them to the agency, and you should tell the agency that the customer contacted you so they can contact the customer.
To find an agency in your state visit Credit & Collections, scroll down to the map and click on your state.
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