How do collection agencies charge for services offered?
Collection agencies usually charge in the any one of the following three ways- • They charge a flat fee. • They may sell the debt account to any other collection agency • Collection agency may take a percentage of the debt amount they collect. A collection agency uses one of the methods for debt collection. • Litigation • Letters • By communicating directly with debtors on telephone. Advantages of hiring collection agencies There are many advantages in using the collection agencies for debt collection. Some of then are as follows- • Collection agencies usually specialize in debt collection and it has been proved time and again that hiring the services of a third party is beneficial. • Lenders do not have to take the pain of chasing debt accounts and this saves a lot of time and money. • By combining debt collection as well as sales ledger management, chances of recovering debt amount increases. Disadvantage of hiring collection agencies Just as there are several advantages of hiring a
