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Things to Consider When Choosing a Collection Agency

Wilson Cole

If you're considering expanding your business and getting into the debt collection industry, choosing a reliable collection agency is an essential component of executing your plan effectively.

The right partnership with a professional service can give you all the tools you need to make successful recoveries on past-due debts without risking reputation or compliance problems.

However, there are many factors to consider before selecting an agency for debt collections, and these decisions should be thoughtfully evaluated in order to ensure that your business remains successful over time. Here's what to take into account when making this important choice!

Things to Consider When Choosing a Collection Agency

Licensing and Accreditation

One important factor to consider is licensing and accreditation. It's crucial to work with an agency that is licensed and registered with the relevant governing bodies in your state.

This will give you peace of mind knowing that the agency is operating legally and has a set of guidelines they must adhere to.

Accreditation from reputable organizations, such as the Better Business Bureau or ACA International, shows that the agency has met high standards and is committed to best practices in the industry.


When it comes to choosing a collection agency, the experience should be at the top of your list of considerations. The more experience a collection agency has, the more knowledge they have about the industry and the nuances of debt collection.

An experienced agency will be more equipped to handle difficult situations and find creative solutions to collecting the debt owed to you.

They will also have a better understanding of legal requirements and compliance issues, ensuring that your business remains protected throughout the collections process.


You want to work with an agency that has a proven track record of success and a reputation for ethical and professional practices.

A reputable agency will not only be more effective at collecting your outstanding debts, but they will also handle the process with integrity, treating your customers with respect and adhering to all applicable laws and regulations.

Before choosing a collection agency, do your research and look for reviews or testimonials from other businesses that have worked with the agency in question. A positive reputation can give you peace of mind and increase your chances of a successful collection process.

Collection Methods

You want to make sure that the agency you choose uses ethical and effective methods to recover your unpaid debts. Some agencies may rely on aggressive tactics and harass your debtors, which can damage your reputation and potentially lead to legal trouble.

On the other hand, a reputable collection agency will use a variety of methods that prioritize communication and negotiation, such as phone calls, emails, and letters.

It's important to do your research and choose an agency that aligns with your values and will represent your business professionally.

Fees and Commission

As you search for a collection agency, it's important to ask about the fees and commissions that will be charged so that you can make an informed decision.

A reputable collection agency will be transparent about its fees and commission and will provide you with a written agreement that outlines all of the costs associated with its services.

Remember, the cheapest option is not always the best, and it's important to choose a collection agency that will provide you with the level of service you need while being transparent about its pricing.

Technology and Tools

In today's fast-paced world, choosing a collection agency that utilizes technology and tools can be a game-changer.

It's essential to consider technology, such as automated messaging systems, as it can streamline communication between debtors and collectors, making the process more efficient.

Tools like skip tracing software can also be incredibly helpful as they can locate missing debtors and, in turn, increase recovery rates. Additionally, data analytics can help predict which accounts are likely to pay and help prioritize collection efforts, allowing for a more strategic approach.


Effective communication is a crucial factor to consider when choosing a collection agency. As the agency will be representing your business, it's important to ensure that they have excellent communication skills both internally and externally.

Clear and concise communication with debtors is vital in attempting to collect outstanding debts. It is also important that the collection agency keeps you informed of their progress and any potential issues that may arise during the collection process.

A good collection agency should be transparent and responsive to your communication, allowing you to feel at ease knowing that your debts are being handled professionally and efficiently.


When it comes to selecting a collection agency, compliance should be at the top of your list of considerations. Not only is staying within legal boundaries important for your company's reputation, but it's also essential for avoiding expensive lawsuits.

Make sure to do your research and find an agency that is well-versed in the Fair Debt Collection Practices Act (FDCPA) and other relevant regulations. Ask about their training practices for employees and review their track record for compliance-related complaints.

You want to work with an agency that prioritizes ethical and legal practices, as this will ultimately benefit both your business and your customers.

Customer Service

High-quality customer service will increase the odds of successful communication and collaboration between your business and the collection agency you hire. Make sure that the agency you choose offers friendly, prompt assistance when needed.

Additionally, it's important that they respect the debtors' rights; making sure to keep the conversation courteous while advocating on behalf of your business at all times.

In most cases, lasting relationships are built on mutual trust and respect, so make sure to find an agency that values those ideals above everything else.


A collection agency that can't provide you with the desired outcome of collecting overdue payments won't do much good for your business. You want to ensure that the agency has a proven track record of getting results and understands the industry-specific challenges you face.

Look for an agency that has experience with collecting debt in your specific industry and has a high success rate of restoring accounts to good standing.


In conclusion, the choice of the right collection agency is vital to the success of your business.

Before making this choice, you must consider important factors including the collection agency’s size and experience, negotiating capacity, strategies for compliance with laws and regulations surrounding debt collection, customer service and responsiveness.

Ultimately, taking some time to consider each factor mentioned above can save you from a lot of headaches later on. With careful consideration in advance, choosing the right collection agency doesn’t have to be a daunting task.

For more information, book a FREE demo with a Backdoor Hire Specialist.

Wilson Cole

Wilson Cole

Founder and CEO of Adams, Evens & Ross NC, LLC, the nation's largest credit and collection agency designed exclusively for the staffing and recruiting industry. In 2008, he was inducted into Inc. magazine's, "Inc. 500" as CEO of Adams, Evens & Ross NC, LLC, the 307th fastest-growing privately-held company in America. This exclusive group of other Inc. 500 CEOs includes; Bill Gates of Microsoft and Larry Ellison of Oracle. In 2007, Recruiting & Staffing Solutions Magazine named him "The Billion Dollar Man", based on successful collections of more than 1 Billion dollars in past due debt. With a career spanning 30 years as CEO of Adams, Evens & Ross NC, LLC, he's in the business of getting clients paid.