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Inside Advice

Let's admit it, just about every collection agency out there promotes themselves as being "unparalleled", or "the best in the industry", and more.  


How can you separate FACT from FICTION?


Where can you find factual information instead of sales hype?


Fortunately, our collection pros have put together this inside advice and straight talk to share with you how other typical collection agencies operate to help you better know what to look for and what to "watch out for" when selecting a collection agency:




Don't Be Drawn in By Bait-and-Switch Rates and Fees


When shopping for a specific product such as a new car, most of us shop different dealerships for the best price because the car is the same from dealer to dealer and so it doesn't really matter which dealer is selling it.  The product is the same and the dealers can do it is sell it for less than the next guy.  However, when shopping for a servicethe company providing the service is crucial.  As an example, if you are in need of medical care you wouldn’t compare one doctor to another only by their prices.  If you have an important legal case, you’re going to compare the skill and experience of one lawyer to another, not just their rates.  It’s the same with collection agencies, yet many people often assume that all collection agencies are the same and comparison shop agencies only by their fees instead of also comparing the quality of their services.  Simple rate-comparison is a big mistake when comparing collection agencies.  Be sure to read all the tips on this site to “smoke out” the good collection agencies from the bad agencies.  Don't be fooled by sales hype and rates.



Cherry-Pickers and Weak Letters


Most debt collection agencies in the industry tend to “cherry pick” or “cream” the collection accounts assigned to them for recovery by simply mailing a series of generic collection letter to your debtors to shake out any "easy money".  There may be a few debtors that will call the agency upon receiving a collection letter to pay the debt.   However, to most debtors, it is plain to see that such letters are obvious “fill-in-the-blank” demand letters that are generated by a computer and unseen by human eyes.  The majority of the letters only end up in the debtors’ trash can and your customer’s delinquent account remains UNPAID.  In fact, the American Collectors Association has determined that most large agencies only recover from 7% to 14% of accounts assigned to them, leaving from 86% to 93% of your accounts UN-collected.  At Peak Financial, our letters are custom tailored for each of your debtors, informing the debtor of our knowledge of their ownership of any property or place of employment, or addressing any dispute the debtor may have had with your product or service.  At Peak Financial, our letters generate a strong response from your debtor, better enabling us to get you PAID.  We don't make use of generic, fill-in-the-blank letters.



The Mistake of Small Payment Arrangements


Most of the typical collection agencies out there will then follow up their “fill-in-the-blank” letters with a series of lackluster telephone calls by low-paid “telemarketer collectors” who have little or no experience in professional debt collection.  These are usually very young people (some of them still in high school), that have little or no experience how to firmly persuade your debtor to pay the full balance of the unpaid account, and these “almost-collectors” usually end up asking your debtor for some small amount of money.   The remaining accounts are either paid off in small amounts over long periods of time, or ultimately deemed “uncollectable” by the agency.  These kind of agencies aren't doing anything more than you could do on your own.  The only accounts that are handled by experienced collectors in other typical collection agencies are those accounts with high balances that can make the agency a fat profit.  At Peak Financial, we hire only seasoned and professional debt collection PROS that know how to persuade even the most hardened debtors to pay – IN FULL.  At Peak Financial, ALL your accounts are assigned to collection experts, because we only hire experienced professionals.  Check it out on the How We Do It page.



Why Can’t Your Debtor Be Found?


Most collection agencies will make little or no attempt to locate good contact information on accounts with bad addresses or disconnected telephone numbers, either because they don't know how, or because the agency doesn't want to invest the time or money on work anything but the highest balance accounts that can make them a fast back and a quick profit.  As a result, many client find most of their assigned collection accounts receive little or no work effort by the agency assigned to recover them.  At Peak Financial, ALL your accounts, regardless of the balance, are processed through a rigorous search for addresses, telephone numbers, social security numbers, sources of income, family members and associates of the debtor that may have location or employment information about the debtor, and more.  We know from experience that the more we know about your debtor, the more likely we will be able to recover the debt quickly and obtain the balance in full for you to get you PAID FAST.  Want to know how to test a collection agency to determine if they know how to skiptrace?  Check out the FAQ page for the answer.



Small Business Owners Get Pushed Aside


Most collection agencies tend to cater only to “high volume” clients that can assign large batches of collection accounts at a time.  Why?  Because in the typical collection agency, accounts are processed through the agency’s quick-and-cheap factory collection method of using bulk-mail, “fill-in-the-blank” demand letters, combined with low-paid “telemarketer-collectors” that have little or no experience in debt collection.  The typical collection agency relies on large volume to cream the “easy” money off the top and this is the only way the agency’s factory method of collecting can possibly be profitable.  Statistics have shown that such agencies only recover from 7% to 14% of the accounts assigned to them for collection.  Business clients that have relatively little collection volume quickly discover that their accounts have low priority with the recovering agency, and so service of the accounts is usually minimal, and with poor results.    At Peak Financial, we start with a comprehensive search for information to learn a LOT more about your debtor than you may already know, then we mail powerful and effective custom-written collection letters that get strong results, and finally, each one of your debtors is personally contacted on the telephone by one of our experienced collection experts that knows how to get the BALANCE IN FULL from your debtors, so you get PAID FAST.



For more inside tips on selecting a collection agency, click on the Learn More page.

Call anytime for more info.


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