15 questions
What happens if a customer pays us after we hire a collection agency?
Your agreement may still require the agency’s fee on a direct payment. Tell the agency promptly so collection activity can be updated. Check the reporting deadline and commission terms before placing accounts.
Link to this answer ↗Can I approve a debt settlement before the agency accepts it?
Ask for settlement authority to be specified in writing. You can discuss approval thresholds and who may authorize reductions. Do not assume every agency automatically obtains your permission for every payment arrangement.
Link to this answer ↗Can I withdraw an account from collection?
Review the recall and cancellation provisions first. Withdrawal can involve fees or continuing commission obligations on later receipts. Ask how the agency stops activity and confirms the account has been returned.
Link to this answer ↗Can an agency collect an invoice that the customer disputes?
It depends on the facts and the agency’s service. Provide the dispute history and supporting documents. The provider may need additional evidence or recommend a different route; collection activity does not resolve every contractual disagreement.
Link to this answer ↗Does a collection agency buy my invoices?
Not necessarily. A collection service usually pursues accounts for an agreed fee while you retain the debt. Selling receivables is a different transaction with a different price and risk allocation. Confirm which arrangement is being proposed.
Link to this answer ↗How often does a collection agency send recovered money?
Remittance schedules vary by agreement. Ask about payment clearance, deductions and statement timing. Request a sample remittance report so your accounts team knows how to reconcile recovered amounts against the original invoices.
Link to this answer ↗Can we place just one large commercial account?
Some agencies accept individual placements; others prefer ongoing account volumes. Describe the balance, age and documentation during the initial discussion. Minimum fees and account acceptance rules may affect the value of a single placement.
Link to this answer ↗Can an agency handle customers in another country?
Ask about the specific country, language and collection arrangements. International work may involve local partners and additional charges. Confirm who receives data, who performs the work and how recovered currency is converted and remitted.
Link to this answer ↗Will a collection company contact our customer under our name?
Some early-stage services operate as an extension of your receivables team; third-party collection is different. Confirm the identity used in communications and approve the service scope. Do not assume the two approaches are interchangeable.
Link to this answer ↗Can collection fees be added to the customer’s balance?
Do not assume they can. That depends on the agreement with the customer and applicable law. Ask the agency and appropriate legal adviser before adding charges; your agency contract alone does not establish what the customer owes.
Link to this answer ↗What records help support a disputed delivery invoice?
Keep the order, agreed terms, invoice, delivery evidence and relevant correspondence together. Identify credits or returns. The agency can then assess the account without relying only on an unpaid balance in your accounting system.
Link to this answer ↗Can collection agencies pursue a customer that has closed?
Closure can change recovery prospects and the appropriate process. Tell the agency what you know about the business’s status. Insolvency or bankruptcy issues may require specialist advice rather than ordinary collection activity.
Link to this answer ↗How are partial payments charged under a contingency agreement?
The contract should explain whether commission is deducted from each receipt and how expenses are handled. Ask for a worked example. This helps you compare cash received over time rather than only the full balance.
Link to this answer ↗Can I exclude important customers from an automated placement file?
Agree an approval and exclusion process before transferring accounts. Review the file for disputes, recent payments and protected relationships. Automation should not replace a deliberate decision about which accounts are ready for outside collection.
Link to this answer ↗Are business debts covered by the federal FDCPA?
The federal Fair Debt Collection Practices Act does not cover business debts. That does not mean commercial collections are unregulated. Ask a qualified adviser about relevant state laws, licensing and contract requirements for your situation.
Link to this answer ↗Commercial Collection Services Prices
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