Frequently Asked Questions

 

Q.   What if my debtor has moved out of state? 

 

A.   We will work accounts such as this just as we do in-state accounts.  In cases where your consumer has moved to a 'closed borders' state, we will forward the account to an agency in his local area.  We have relationships with other collection agencies throughout the US, many of whom are also clients.

 

Q.  Can I call or send letters to the consumer after I turn the account over to you?

 

A.  The federal Fair Debt Collection Practices Act (FDCPA) forbids two entities from attempting to collect on the same debt.  Once an account is placed with us you will need to mark it as such in some way, so that you send no further correspondence to that consumer in connection with this debt.  If the consumer contacts YOU, you should tell him that you are no longer handling the account, and refer him to us.  If he makes a payment at your office, it is IMPORTANT that you notify us immediately, so that we are not continuing to dun for a debt that is paid in full or partially (also against the law). 

 

Q.  Can we add interest or a collection fee to an account we place with you? 

 

A.  In New York State, the law is silent on this issue, so a case  which is disputed by the consumer because of the addition of fees will be ruled upon by a judge.  The FTC has issued an opinion that an additional amount may not be added if the original contract does not provide for the addition of fees and state law is silent.  Our attorneys have researched this area, and their opinion is that if you have a written agreement with your customer/patient which specifically allows the collection of interest, fees and/or collection costs, the court may overrule any objections put forth by the consumer.  In any case, no further charges may be added to an account once it is placed with us.

 

Q.  When do you close an account?

 

A.  The answer to this question will vary, based on the size and age of the account, amount of information provided by you, and the debtor's credit history.  Typically, if an account has been worked for 3 or 4 months with no payments being made, or the collector has been unable to reach the debtor, the collector will either (1) report the account on the debtor's credit record and transfer it to history, if no assets are found; or (2) verify employment or other assets and recommend suit to our client.  Although an account is placed in history, it is still reported on the debtor's credit record for up to 7 years after the date of service.

 

Q.  When do you sue an account?

 

A.  If our collector determines that a debtor will not pay voluntarily, or refuses to pay, she will verify full-time employment or other assets and send an authorization letter to our client, requesting permission to sue.  The NY statute of limitation for suit is 4 years for sale of tangible goods and 6 years for provision of services (e.g., medical) or written contract.  An account must also be a certain minimum size in order to make suit feasible.

 

Q.  How do we pay your fee?

 

A.  There is no fee, unless we collect!  Monthly we will deduct our fees on accounts collected from the total monies collected, and remit the balance to you.  Fees on accounts paid at your office will also be deducted from monies collected in our office--if there is a fee balance due, it will be billed to you.  Your statement/remittance will be delivered personally most months by your VP Marketing representative, who will review it with you.