Hi all,

Our collection agency is effective, but only supports debts of $1,000 or more. What options do I have for smaller debts?

Thank you

Hi,

What agency do you use, we are looking for one .

Regards,
Dan

We're using STA International.

http://www.access-receivables.com/accessSite/index.jsp

I highly recommend these guys if you do not have a large account receivables. For small accounts, they were the only one we could find that would collect on them. They will collect on $10 if you want. Anything under $100, they take 50%. Over $100, they take 20%. We add $20.00 to each account we turn over to collections on top of what customers owed to help cover their cost.

Everything is done online. They are averaging about 10% success rate.

Only a 10% success rate? Egads. I wonder if that is an average response where litigation is not an option.

It certainly seems that the kind of people who walk out on contracts aren't afraid of anything short of legal action.

If recovering the money is unlikely, then perhaps we could report them to a credit agency?

Pretty typical results. Understand they can not afford to spend much time on a small claim. Therefore, if they don't get positive response quickly, they move on in a hurry.

For example, on a $1000, where they stand to make $333 on average they could afford to make 5 or 6 calls. However, on a $20 where the most they can make is $10....thats one or two calls at the most.

In this business, you really need to get your money up front.

Only a 10% success rate? Egads. I wonder if that is an average response where litigation is not an option.

Anything under $100 will not go to litigation. 10% isn't bad against the small time users we have. The larger companies are usually 50% when we need to collect. Most people now days know that anything under $100 won't be reported so they just don't care.

If recovering the money is unlikely, then perhaps we could report them to a credit agency?

Nothing under $100 is reported. Agencies use the $100 mark as the Mendoza Line for reporting. Anything under this and the cost associated to defend a law suit is too high.

Are you saying that you have a solution that includes litigation or reports debts to a credit bureau for debts under $1,000.00 and over $100.00?

That sounds terrific. What's your success rate and who is doing this for you?

Dave

I have used M.A.D. Agency. They are very good.

http://www.madagency.com

Thanks,
Michael

I work for such a place - we collect debts that are small also. Please check out..

http://www.gsbcollect.com

I believe they work on percentage but I'm not a salesman :)


JDT