
- Is the agency a member of a national trade association? Membership is an indication of professional integrity.Does the agency belong to a local Chamber of Commerce?
- Does the agency charge fees that are clearly stated?
- Is the agency prepared to give the best possible service? An agency cannot guarantee results on any specific date, but will often estimate an average recovery rate that one can expect.Will the agency be sensitive to a consumer's individual situation? The agency should promptly notify you when it discovers a consumer who is a hardship case and recommend a proper procedure to follow.
Ask for references and contact them, contact any associations they belong to, ask how long they have been in business and what their success rate is.
- The name of the creditor
- The reason for the letter
- Explain why they are contacting the debtor
- The total amount due
- Suggest a solution (such as payment in full!)
- What they should do if they do not believe they owe the money
- Include the mini Miranda as per the FDCPA
What should they NOT say?
Anything derogatory or negative about the debtor or situation.
They should not threaten the debtor with anything you can’t or won’t do. For example you can’t tell the debtor in a letter that you will take them to court or report the debt to the credit bureau if you don’t intend to take that action.







Great interview at the starting a business website, Michelle (http://www.startingabiz.com/starting-a-collection-agency/). I'm planning to open an agency in Reno in February and I especially appreciate the part about buying charged off debt. I appreciate you help.
Posted by: Mark Wagoner | October 26, 2007 12:30 PM | Permalink to Comment