Is It Possible To Negotiate Debt Collection Rates?

Filed Under Business |

by JR Rooney

I’m need to collect some past due accounts. Do collection agencies give volume discounts?

Yes, many good collection agencies will offer a discount if your company places multiple accounts or the balance is very high or the account is new.

Generally, there are three rules to follow to determine what rate your company will be charged:

Balance due. If you have a bad account totaling $5,000 or more, your company may qualify be able to get a discounted rate.

Age of account. An account that is 60 days past due has a better chance of being collected than a 730 day old file. A Collection agency that get paid based on how much they collect will not have enough incentive to work on older past-due accounts, much less offer you a reduced rate on them.

Volume discounts. If you have a lot of accounts to collect, you should be able to secure a smaller rate. For example, if your company has 25 past due accounts for $25,000 that are less than one year old, you should get 30 percent to 35 percent off regular rates, unless you entered into a different kind of arrangement.

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A Collection Agency that i personally know will treat you good and give you a great rate is Rapid Recovery Collection Company