debt collection fees in USA
Thread poster: TranslateWithMe

Local time: 16:14
English to Polish
+ ...
May 23, 2005

Dear colleagues,

I am looking for some info regarding standard fees charged by US debt collecting agencies. What is the normal range, if any?



Kevin Fulton  Identity Verified
United States
Local time: 10:14
German to English
10-30% May 23, 2005

In my limited experience, the range seems to be between ten and thirty percent of the amount owed. But you only pay if the debt is collected.


Anthony Tamburro
English to Italian
+ ...
fees vary but there are better ways May 23, 2005

I have dealt with a debt collection agency in California and the fess vary depending on the amount. 50% of anything they collect if under $1000, 40% if over $1000, but under $2,000 and then %35 for anything else. It also depends on the agency. In my experience, the debt collection agency did not collect my debt (hence I did not have to pay them anything.) There is only so much they can do and if it is a small amount, it will be at the bottom of the pile and never get taken care of.
Recently, I have had another non-paying client and I was advised by
the same debt collection agency to do the following:
List the company with the Better Business Bureau (this will adversely affect their credit rating)
Check public records to see if their licenses for doing business are current
Send them a letter reminding them to pay within 7-10 days and state that you will take legal steps to recover your money if they do not.
Upon expiry of this date, file a small claim against the client (if amount is under $5000), return it to the court of the county in which you live (in order for them to set a trial date) and then have the local sheriff serve the client with the paperwork.

This will accomplish many things: it will show that you are serious about getting your money, the client will see a sheriff serving them with the paperwork, which will have a trial date on it, and if they then decide to pay it is possible to cancel the trial date. If not, take them to court and see what happens.

Good luck


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debt collection fees in USA

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