How To Choose a Collection Agency


Here are a few guidelines to help you research the best collection agency for your organization:

1. Rate

  • Based on:
    • Age of accounts placed
    • Volume of accounts placed
    • Balance of accounts placed

2. Recovery Percentage

  • The lowest rate is not always the right answer, net return is!

3. Training of Employees

  • What is their Turnover Rate?

4. Credit Bureau Reporting

  • Report to all 4 major credit bureaus?

5. Experience

  • How long has the agency been collecting medical debt?
  • What percent of the agencies revenue is generated from medical debt?

6. Compliance

  • FDCPA (Fair Debt Collection Practices Act)
  • FCRA (a.k.a. Fact Act of 2003) (Fair Credit Reporting Act)
  • State Collection Laws

7. Professionalism

  • Quality Assurance Program

8. Office Visit

  • Have you seen the environment of your chosen collection agency?

9. Insurances

  • General Liability
  • Errors & Omissions Liability
  • Employee Theft Insurance
  • Surety Bonds (state-specific)

10. Technology

  • Scoring Methods
  • Professional Practices Management System (PPMS)
  • Record all phone calls between patient/debt collector

11. Date of Delinquency

  • Why is it important to report accurately to your agency

12. Size of the Agency

  • Do you require a small, medium or large facility?
  • Call volume and blending capabilities


Note: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Although we attempt to provide up-to-date information, laws and regulations often change. We make no claims, promises, or guarantees about the accuracy or completeness of this document. For legal advice, please consult an attorney.

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