Why should I use a collection agency? Bullseye Collection Agency (BCA) are experts in collecting your money, with a small percentage kept covering our fees. Our service doesn’t require any out-of-pocket costs from your company. By using our debt collection services, you are getting back at least a portion of your money instead of none at all. Our agency collects on the full balance plus a daily interest accrual which is an additional incentive for the debtor to pay their balance quickly.
What does "contingency" mean when you are talking about rates? As an agency that works on a contingency basis, we do not require any upfront payment. Our payment is contingent on our ability to collect. You only pay the designated rate once we have money in hand.
How long should I wait to submit my account for collection? The sooner an account is submitted for collection the higher the probability is of collecting on the debt. Accounts placed after six months after default have nearly a 50% less likelihood of being recovered.
What is a default date? The date of default is the date of service/purchase or the date of last voluntary payment made and resets with each voluntary payment made on the debt. The default date is what is used as the beginning date for the statute of limitations (see next).
What is the statute of limitations? The statute of limitations for debt collection is the period of time that a creditor can use the court to sue for payment of a debt. The time period starts on the account's default date (see previous) and varies by state. It is usually between three (3) and six (6) years, but is as high as 15 in one state. In Minnesota, the statute of limitations is six (6) years from the date of default.
What about the interest I am owed? No worries! We will continue to accrue interest daily on your accounts at the statutory rate of six percent (6%).
Do you garnish wages or levy bank accounts? In our office we work with debtors on a voluntary basis, meaning we try to set up a payment plan or come up with a fair settlement offer. We forward files to our attorney partners once we have exhausted efforts on our end to either establish contact or come to a payment resolution. The attorneys have an additional strength in that they can pursue a court judgment in order to collect the funds from the debtor involuntarily by garnishing wages or levying a bank account.
When can I expect to hear about my accounts? Once an account is loaded into our system, you will receive a "New File Acknowledgement" report that lists the basic information (name, debt amount, default date, etc.) for all accounts placed recently. This is for your records to know that the account was received by us and is now being actively collected. You should review this report against your records to verify there are no errors. If a payment is collected on an account, you will receive those funds (less our commission) along with a statement detailing the payment the following month around the 10th.
How long will you try to collect on my accounts? This depends on the account and circumstances but for the most part we will keep files open indefinitely. We have to close files for bankruptcy proceedings but if it is a Chapter 13 bankruptcy we will attempt to collect by filing a "Proof of Claim" with the court-appointed bankruptcy trustee.
A business owes me money. Do you collect on these types of debts? BCA does collect on business debts in addition to consumer debts. There are a few nuances, however. If an business is listed as "Inactive" with the Secretary of State we must assume the business is closed and/or defunct. As such, we treat the closed business the same as if a consumer has filed bankruptcy. The business is no longer active and therefore funds are not able to be collected. This changes if the business is an assumed name or if someone signed a "personal guarantee." In these cases, the individual is still liable for any debt should the business default.
What happens if a debtor pays me directly? If you receive a payment from a debtor, we ask that you report it to us immediately. It is important that we have the most up-to-date balance information so that we do not attempt to collect on a balance that has already been paid. Per our placement form, the client agrees to pay us our commission if they receive any direct payment or find that they account was paid previously.
What is the Fair Debt Collection Practices Act (FDCPA)? The Fair Debt Collection Practices Act (FDCPA) approved in 1977 (and as subsequently amended) is a consumer protection amendment, establishing legal protection from abusive debt collection practices. The statute's stated purposes are: to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. The act creates guidelines under which debt collectors may conduct business and defines rights of consumers involved with debt collectors. http://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text