Commercial Collections Blog

Agencies Specialize in Consumer or Commercial Debt

Why Most Collection Agencies Specialize in either Consumer or Commercial Debt Collection?

It seems collection agencies are doing much the same thing when collecting commercial and consumer debt.  However, there is a big difference and several things to consider before hiring an agency.  In the end, it may be best to send consumer collections and commercial collections to separate agencies.

There is a common mindset among commercial-debt collections agencies that the Federal Debt Collections Practices Act (FDCPA) never applies to them.  It should be noted the States of Nevada, Tennessee, and Missouri treat commercial and consumer debt the same.

One way to narrow your choices of agencies is to look to see if they are licensed in each state, have surety bonds, they are members of the American Collectors Association (ACA), if they collect credit card data they are Payment Card are Industry (PCI) compliant, have 100 percent recording of calls, no Federal Trade Commission violations (not complaints, but findings, because anyone can complain).

If a commercial agency is “Certified” with the Commercial Law League of America (CLLA), or Commercial Collections Association of America (CCAA).  These associations’ mission statements state the agency will follow ethical standards.  As a note, there is a difference between being a CLLA member and being “Certified”.  Finally, being a member of the Credit Research Foundation (CRF) ensures the agency understands finer nuances of commercial collections and can address specifics on averages in your industry SIC code.

Your brand is one of your most important assets — and you should carefully review any agency you’re considering.   Debt Collections Practices rank 2nd for Federal Trade Commission (FTC) complaints.  There are companies operating in this industry that frankly should not be.

On the consumer front, each call the agency makes must adhere to the the FDCPA.  The debtor must be informed the call is being recorded, they are speaking to the right party, and include the Mini-Miranda announcement.  Each violation can result in a fine of between $1,000 and $16,000.

Finally, if dealing with medical records collectors are required to be Health Information Protection and Portability Act (HIPPA) compliant.

Debt Collection News

  • Indonesian embassy in Saudi Arabia helped domestic workers collect IDR40 billion in unpaid ...

    April 25, 2018
    But these cases, while extreme, are also part of a shockingly common trend. So much so that the Indonesian Embassy in Riyadh revealed that it had formed their own “debt collection team” to actually knock on the doors of non-paying Saudi employers to get Indonesian workers the salaries they deserve.
  • How You Should Respond To Debt Collectors

    April 24, 2018
    [Credit Corrector Solutions] We know the story all too well, you fall behind in a bill. You don't pay it. The creditor realizes they are never going to get their money so they refer it to their "in house" collection department, or a debt buyer or collection agency buys the debt. Now, they begin calling your home, ...
  • From Collector: Ask the Experts: Making Connections

    April 24, 2018
    I suggested we do consumer outreach on some hot topics in the debt collection industry, including identity theft, blocked calls and robocalling. This was a tremendous opportunity for us to communicate the message we so desperately want consumers and legislators to hear,” Manghisi said in the April ...
  • Consumers got nearly 5 billion robocalls in the first quarter

    April 24, 2018
    “The TCPA is the principal federal law to provide protections against harassing and unrelenting debt collection calls from first party creditors,” said Saunders. “The debt collection industry is a key driver of abusive calls that break the law with documented cases resulting in hundreds or even thousands of ...
  • A Kingpin, A ROBOCOP Act, and More. How Will it all Work?

    April 24, 2018
    What about other consented calls, like debt collection? Debt collection calls may not be 'wanted' or accepted in the same way we can all get behind school closings, but in a way, they are even more important, since there are any number of other ways to learn about school closings (website, local news ...
  • Identity theft isn't just an adult problem. Kids are victims, too

    April 24, 2018
    Should your toddler receive a jury-duty summons in the mail, or debt collectors start calling for your tween, don't be so quick to dismiss those interactions as a quirk of mistaken identity. More than 1 million children — or 1.48 percent of minors — were victims of identity theft or fraud in 2017, according to a ...
  • Fayette County Court News

    April 24, 2018
    Fayette County Court News. Apr 23, 2018 ... Forward Air, Inc., Des Moines, debt collection for damage to delivered goods. State of Iowa v. ... Danielle Darlene Kleppe, Oelwein, debt collection, judgment entered in favor of plaintiff in the amount of $568.79 with interest from April 11, 2018 and court costs.