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Collection Angencies??

Discussion in 'Business Operations' started by UpNorth, Nov 6, 2006.

  1. UpNorth

    UpNorth LawnSite Member
    from NE,US
    Posts: 203

    I did a search, didn't really find too muck info on this subject.

    I am in need of a collection agency, I have about 10-15 accounts that owe me approx. $125-$350 each. So its worth going after them. I have heard of some agencies that take a percent what the collect(some take 50%), some take less % but require more accounts to collect from, etc, etc.

    Has anyone used any that have got you some money back, and/or do you have any agencies you can recommend.

  2. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    try Olddebts.com, I saw a few other sites listed in threads on here as well. Do a "collections" search and I am sure you will find quite a bit. OR, you could make up your own collections letters. OR, if you don't want to make them do a google search. I found quite a few that way. Do you run quickbook pro? they have them built in. A number of ideas for you, hopefully one of them will help.
    good luck. :) Jeff
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    From what I've learned, court is a waste of my time and the farther I stay away from that, the simpler my own life is.

    It would appear the only thing effective beyond that (and legally so) is reporting it to all 3 credit bureaus. Although I know for a fact you will not always see your money right away, it is also very possible that 2-3 years down the road suddenly you get a phonecall one day (gee, my loan was denied, how can I get this issue off my record?) I do know it comes back around if not your way then at least theirs, sooner or later in 7 years time the chances are good to excellent.

    Unfortunately, having the ability to do this directly is not feasible for small / solo operations.

    So, olddebts.com is what I use, 2 accounts this year so far...
    Around your range, so to speak, thou I chase fairly regardless of amount.

    They charge a flat fee upfront, depending on package, the least expensive is $7 and I also like their 4-letter + phonecalls (that bit is extra) costs near $30.

    But, I always make SURE to select the +$3 credit record option. That to me is more important than anything else, at least this way I know someday it's coming back to haunt or at the very least remind them.

    If they fail to collect, you can sell it to their parent company at 30% contingency (you don't pay, but they send amount owed - 30% if they collect).

    So far, neither of my deadbeats has paid, but I can wait 7 full years.
  4. UpNorth

    UpNorth LawnSite Member
    from NE,US
    Posts: 203

    Thanks for the info. I actually sent out my last letter/statement to the "deadbeats" about an hour ago. I plan on calling each customer a final time starting on Monday, and when they refuse to pay I am going to use your sugustions and use olddebts.com.

    Thanks again

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