More Than A Number

As the economy slows down, businesses need every dime they earn. Many companies are calling on debt collectors to help them collect payment for products and services that remain unpaid. A debt collection agency is a business that actively collects debts that individuals or companies owe. Most collection agencies work on behalf of the party that is awaiting payment for a percentage of the total owed. The debtor is the person or business that owes money for products or services.

Types of Agencies

• A first-party collection agency is part of the creditor company, so these agencies tend to be invested in collecting on the balance owed.
• Third-party agencies are those that are not affiliated with the creditor, but are hired to collect debt on its behalf. Typically, creditors retain accounts for about six months with first-party agency, and then hand it over to a third-party agency.
• Some agencies specialize in commercial collections owed for business-related services, and others focus on consumer and retail collections owed for purchases related to personal and household use.

Often, successful collection calls can be attributed to the skill and understanding of the collector making the call. For this reason, most companies opt to contract with experienced collectors such as PSI Collect. This Los Angeles collection agency has been in business for several years and has an excellent staff retention rate, allowing employees to gain experience that some agents lack.