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Recommendation of collection agencies?
Thread poster: Josie St-Amour
Josie St-Amour
Josie St-Amour
Canada
Local time: 13:12
English to French
Nov 12, 2008

Do you have any suggestions about collection agencies (preferably located in the US)

I told one of my client that we would use a 3rd party if he didn't pay before the end of this month and I really believe he does not take us seriously.

They even still ask me to do jobs for, but I still have 2007 invoices pending... imagine!

This client is located in the US and I am in Canada, does that creat... See more
Do you have any suggestions about collection agencies (preferably located in the US)

I told one of my client that we would use a 3rd party if he didn't pay before the end of this month and I really believe he does not take us seriously.

They even still ask me to do jobs for, but I still have 2007 invoices pending... imagine!

This client is located in the US and I am in Canada, does that create a problem in selecting a collection agency?

Thanks for your help.

Josie St-Amour
Eliksir ▲ Collapse
 
Kevin Fulton
Kevin Fulton  Identity Verified
United States
Local time: 13:12
German to English
Can be expensive Nov 12, 2008

I've used Dun & Bradstreet on those rare occasions when I haven't convinced a client that it's in their best interests to pay (I've used them twice in the past 15 years). It's a national firm with the added advantage of being a business rating agency which gives it a psychological advantage.

However, unless you're prepared to give a collection agency a 25 - 30% cut of the amount due, you might want to rely on your own resources to collect the bad debt.
 
Josie St-Amour
Josie St-Amour
Canada
Local time: 13:12
English to French
TOPIC STARTER
Merci! Nov 12, 2008

Thank you Kevin,

I don't mind loosing money (IE give a huge percentage) at this point.

I'm tired of being taken for a fool!

It's also my first time since 1996 that I have to go to this point... They still have a week, after that I sending the sharks

Thanks again!

Josie
 
Harry Bornemann
Harry Bornemann  Identity Verified
Mexico
Local time: 11:12
English to German
+ ...
Collection agency vs. lawyer Nov 12, 2008

Kevin Fulton wrote:

I've used Dun & Bradstreet on those rare occasions when I haven't convinced a client that it's in their best interests to pay (I've used them twice in the past 15 years). It's a national firm with the added advantage of being a business rating agency which gives it a psychological advantage.

However, unless you're prepared to give a collection agency a 25 - 30% cut of the amount due, you might want to rely on your own resources to collect the bad debt.

This is interesting.
- Did they succeed to recover those 70% for you?
- Did they do anything a lawyer could not do, except working for free in case of failure?
(Lawyers in Germany usually take 10 - 15%, and add it to your invoice to the debtor.)
 
Kevin Fulton
Kevin Fulton  Identity Verified
United States
Local time: 13:12
German to English
Received prompt results Nov 12, 2008

Harry Bornemann wrote:

- Did they succeed to recover those 70% for you?
- Did they do anything a lawyer could not do, except working for free in case of failure?
(Lawyers in Germany usually take 10 - 15%, and add it to your invoice to the debtor.)


I got a quick recovery both times -- the deadbeats paid in full, D&B got 30% as I recall. At $200/hour for an attorney, I wasn't interested in negotiating a fee limitation. Further, filing a lawsuit in another state can be expensive in the US if the non-payer decides to evade further. Many companies are more afraid of Dun & Bradstreet than an attorney. Collecting attorney's fees in addition to a debt is hard to do without going to court in the US, something that would eat up any recovery.

I also had a couple of instances that were completely noncollectable. One company filed bankruptcy, the other client disappeared (I found out years later that he was in jail).
 
Attila Kosik
Attila Kosik  Identity Verified
Hungary
Local time: 19:12
English to Hungarian
+ ...
collection agencies pay in advance Nov 13, 2008

As far as I know, collection agencies pay the remaining amount (70% in this case, wow, 30% is quite high, in Hungary, market leaders work with a 9% fee.) in advance, and from there it's their money they're going after.
 


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Recommendation of collection agencies?







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