How should I choose a Collection Agency?

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There are thousands of collection agencies, so there are a number of factors to consider when choosing one to represent your interests. Some things to consider:

• Is the company in compliance with your state’s licensing laws? If a debtor reports an unlicensed agency, that agency may be fined and forced to cease collection attempts, which would force you to find another collection agency while continuing to deal with the delinquent debt.
  
• What is the reputation of the collection agency? Ask for references from businesses that are similar to yours in order to ensure that the agency is right for your needs.
  
• Does the collection agency tailor each letter to a specific debtor, or are form letters used for every debt? Are you comfortable with the wording of the letters? Ask to see examples of the letters used.
  
• How does the collection agency notify its customers of a successful collection attempt? Successful collection does you little good if the collection agency fails to promptly notify you.
  

Next Page: How do I find a Collection Agency?

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