Is it possible to Negotiate Debt Collection Rates?
My boss wants me to cut costs. Do you think my collection agency will give me a discount?
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.
Usually, there are 3 basic rules they follow to determine what rate your company will be charged:
Balance due. If you have a delinquent account totaling $5,000 or more, your company should be able to get a discounted rate.
Age of account. A past due account that is 60 days old has a greater chance of being recovered than a 730 day old account. Collection agencies that get paid based on 100% commission will not have a large incentive to work on older past-due account, much less offer you a discount 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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