Frequently Asked Questions
Why should I use a collection agency?
We are experts in collecting money. With a percentage kept that covers 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.
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 your debt. Accounts placed six months after delinquency have nearly a 50% less likelihood of being recovered, than if you place your account immediately.
What is a default date?
The date of default is the date of service/purchase or the date of the 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. In Colorado the statute of limitations is six (6) years from the date of default.
Do you garnish wages or levy bank accounts?
We forward files to our Legal Department once we have exhausted efforts on our end to either establish contact or come to a payment resolution. The Legal Department has 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 an "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. You may request a Debtor Status Report anytime.
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 opened indefinitely. We have to close files for bankruptcy proceedings but if it is a Chapter 13 we will attempt to collect by filing a "Proof of Claim" with a court appointed bankruptcy appointee. If a file is closed for bankruptcy or any other reason, it will be listed on your cancellation report.
A business owes me money. Do you collect on these types of debts?
Account Brokers does collect on business debts in addition to consumer debts. There are a few nuances, however. If a 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 businesses the same as if a consumer has filed bankruptcy. The business is no longer active 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.
What happens if a debtor pays me directly?
If you receive a payment from a debtor, we ask that you report it to use immediately. It is important that we have the most up to date balance information so that we do not try 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 the 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 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 information's accuracy. The act creates guidelines under which debt collectors may conduct business and defines rights of consumers involved with debt collectors. (https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text)
We are experts in collecting money. With a percentage kept that covers 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.
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 your debt. Accounts placed six months after delinquency have nearly a 50% less likelihood of being recovered, than if you place your account immediately.
What is a default date?
The date of default is the date of service/purchase or the date of the 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. In Colorado the statute of limitations is six (6) years from the date of default.
Do you garnish wages or levy bank accounts?
We forward files to our Legal Department once we have exhausted efforts on our end to either establish contact or come to a payment resolution. The Legal Department has 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 an "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. You may request a Debtor Status Report anytime.
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 opened indefinitely. We have to close files for bankruptcy proceedings but if it is a Chapter 13 we will attempt to collect by filing a "Proof of Claim" with a court appointed bankruptcy appointee. If a file is closed for bankruptcy or any other reason, it will be listed on your cancellation report.
A business owes me money. Do you collect on these types of debts?
Account Brokers does collect on business debts in addition to consumer debts. There are a few nuances, however. If a 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 businesses the same as if a consumer has filed bankruptcy. The business is no longer active 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.
What happens if a debtor pays me directly?
If you receive a payment from a debtor, we ask that you report it to use immediately. It is important that we have the most up to date balance information so that we do not try 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 the 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 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 information's accuracy. The act creates guidelines under which debt collectors may conduct business and defines rights of consumers involved with debt collectors. (https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text)