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Why use a collection agency?
Debtors will often pay a collection agency even though they never
cooperated with the original creditor, mainly because collection
agencies typically increase the psychological anxiety associated
with a debt. Second, the debtor will understand that the creditor
is serious about collecting their money. Also, many debtors
are wary of the impact that a collection account can have on their credit score.
What are your overall collection success
rates?
There are several variables that will influence recovery rates:
the age of the debt is arguably the most important factor. The
older the debt is, the lower the chance of recovery. Other important
variables include: industry, balance, documentation, demographics
and type of debt (commercial/consumer/medical/NSF checks, etc.).
How quickly will you collect my money?
Claims are entered within the first 24 hours and
the first collection notice is mailed immediately thereafter.
This notice is followed up with subsequent phone calls and additional
letters. Some debts are collected in the first 2-3 days while
others may take up to 2 or 3 years! There are skips (cannot locate
debtor), debtors who dispute the debt and debtors who are simply
uncooperative. On average, though, we collect most of our payments
within the first 90 days.
Communication is very important to me. What
type of reporting do you offer?
RDK offers many different reports to our clients. We have a custom
report module that can create many custom reports based on the
needs of the client. Our most popular reporting package includes:
MONTHLY debtor activity report, actuary report and a monthly payment
report. Other packages are available and an RDK Client Relations
Representative will assist you in determining which package is
the most appropriate for your company.
What if my debtor disputes the debt or simply
refuses to pay?
If the debtor disputes the debt, RDK will provide them with verification of the debt, which typically consists of the
documentation initially provided by the client. On occasion and depending on the dispute,
RDK may have to request additional documentation from you, the client, in order to properly
verify the debt. If the debtor simply refuses to pay, we will review the file to determine
if litigation is advisable and upon client approval, we will foward the file to collection counsel.
Relevant factors to consider prior to commencing litigation include: good documentation, balance, cost
of litigation and a good address to serve the debtor with the
lawsuit. If a file is not considered “suitworthy”,
you may still request that we report the debt to the credit bureaus. We
receive many payments each week from debtors trying to clean up
their credit rating by paying off old debts.
Does RDK handle my claims all the way through
the collection process, including legal?
Yes. RDK will attempt to recover your debt in-house. In the event
litigation becomes necessary, RDK has developed a national network
of collection attorneys to whom we will forward your files upon
your authorization. We will also keep you updated as to the progress
made by the attorneys who are working on your behalf. Our clients
appreciate the fact that we take care of everything throughout
the collection process, especially the legal process since many
people are not familiar with the complexities involved in a lawsuit.
How important is the age of a debt?
The age of a delinquent account is one of the biggest factors
in determining whether or not a debt gets paid. The older
the debt, the harder it is to collect. Research on the
collectability of delinquent accounts clearly shows that the most
advantageous time to enlist the services of a collection agency
is within 60-90 days of the invoice due date. Incorporating this
strategy will help ensure maximum recoveries with the least cost
to your company.
My Company is very customer oriented. Can
you collect without damaging goodwill or jeopardizing future relationships
with our clients?
Yes, we can. At RDK, we don't adopt a “cookie cutter” approach
to collections. Many of our clients give us specific instructions
as to how to proceed against their customers. We realize that
today's slow-paying customer can often be converted into tomorrow's
good-paying customer with the right amount of collection follow-up,
which is why RDK endeavors to collect while attempting to salvage
the business relationship between our client and their customer.
What experience level does your staff of
collectors possess?
Since RDK is one of the few agencies that successfully handles
both consumer and commercial claims, our collectors are both specialized
and cross-trained in both types of collection arenas. All collectors
are highly trained and knowledgeable in FDCPA requirements. Courses
and seminars are offered that cover a wide spectrum of collection
and service related issues. They are also required as a condition
of further employment with RDK.
What sets your firm apart from the many
agencies out there?
Established in 1992, RDK has seen significant growth over the
years. During this period of development, we have learned what
our customers require and have structured our company to provide
them with exactly those needs. Performance and communication are
two aspects that hold great importance for us since their successful
accomplishment will translate into satisfied clients. Our new,
enhanced website and full-time client-relations representatives
are two of the many reasons that RDK outdistances the competition
when it comes to communication. At RDK, our collectors do not
stand alone, but rather are supported by all levels of management.
We take collections very seriously and believe that collections
are and should be our primary focus.
Does your firm offer collection training
or seminars?
Yes, RDK offers annual or, if demand dictates, semi-annual seminars
for our clients and future clients. The content of these seminars
is designed to hold the interest of the beginning collection specialist
as well as the experienced credit executive. Many aspects of collections
are discussed, such as basic collection techniques, FDCPA requirements,
the litigation process and questions raised specific to the attendants'
industries.
How long have you been in business?
After having been established in 1992, RDK is now in its twelfth
year of operation. The growing pains experienced by younger companies
are far behind us. We are established, have a superior staff,
have identified our clients' needs and are ready to be your collection
agency of choice.
How do I become a client of RDK?
We have included our standard consumer and commercial collections
services agreements in Word format for your perusal and
authorization. These agreements do not mean that you are obligated
to make all of your placements with RDK. Rather, they exist in
order to explain what we intend to do for you, our client, and
what we expect you to do for RDK. It's basically a mini rulebook
governing our relationship.
I'm interested in placing multiple accounts.
Do I have to fill out one placement form at a time or can I place
in mass?
Ease of placement is a reality at RDK. We provide the online placement
forms for those clients that have one or several claims to place,
but for those clients with heavy volume, we can receive their
placements via fax, mail, electronic medium, E-mail or FTP. Our
new enhanced website easily accommodates those clients with large
volume placements.
Does your company charge an annual fee?
Good news. There is no annual fee for our services. In fact, since
our fees are generated solely upon collections, you don't pay
unless we collect.
If I decide to use your services, how do
I get started?
Claim placement is a snap with RDK once you have authorized the
appropriate collection services agreement. Simply click on the
appropriate claim placement form (consumer, commercial, and NSF Checks) and fill it out as indicated. Should
you have the need to process many claims, we can establish an
account number and password for you, thus enabling you to place
directly on-line with us. Once an account is placed, RDK commences
services immediately.
What information would you need from me
in order to get started?
After obtaining your company's name, address, fax, phone and E-mail
address, we would require the debtor's contact information; name,
address, phone numbers, total amount owing and its due date. This
information is sufficient for us to commence collection activity
against your debtor. However, relative to collections, knowledge
is power. The more information we possess concerning the obligation,
the easier it is to dissolve objections and effect payment.
What is your fee?
Generally speaking, our contingent fees are 25% for Commercial
and 33 1/3% for Consumer debt provided that the obligation is
under a year old. For debts older than 12 months, the contingent
fees go up to 33 1/3% and 50% respectively. Should attorney intervention
become necessary, contingent rates are also 33 1/3% for commercial
and 50% for consumer debt.
What is your process for collection?
Once a claim is forwarded to RDK and booked for processing, first
contact is initiated within 24 hours. Our efforts continue through
a series of impact letters and timely phone contacts until the
account is resolved by one of the following outcomes occurring:
payment in full, payment arrangements made, settlement made, litigation
necessary or efforts exhausted.
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