How Quickly Can I Expect My Money?
The collection process takes time. When we receive your customer(s) that you assign to us, we immediately begin the collection process. If the customer is difficult to track down, we have many tools at our disposal that will help us locate the customer. With over 20 years of experience in the collection business, we have the knowledge and skills to maximize your revenue and recovery.
When Should Accounts Be Placed For Collections?
The simple rule of thumb is; the sooner the account is placed for collections, the higher the recovery rate. Recent studies show that recovery rate drops by 11% from 30 to 60 days past due and 3%-4% every 30 days beyond that. Obviously, accounts should not be placed at 30 days past due, but a careful analysis of in-house activities reveals that payments received from in-house efforts drop off dramatically just after the accounts reach 90 days past due.
What Happens If, After The Collection Process, My Customer Still Won't Pay?
If the customer still refuses to pay after our attempts, we will pursue legal action against them. This includes but is not limited to, possibly taking the customer to court, wage/ bank/ tax/ garnishments, liens, repossessions or what ever else may be needed in order to collect monies owed.
Who Pays For Legal Costs?
If a customer doesn't pay and it goes as far as pursuing legal action, the customer will pay all legal costs as long as the contract allows for it. If there is no provision for legal costs in our client's contract, our commission increases to 50% to help offset those costs. To learn how to establish a provision allowing for legal costs contract our sales department at (406) 556-9720
How Do I Assign My Customer(s) To You?
Call our Sales Department (406) 556-9720 and they can help you fill out our assignment form. This can either be mailed to Five Star Collections at P.O. Box 7378, Bozeman MT 59771 or faxed directly to us at fax # (406) 556-9728 Attn: Sales Dept. Remember to include as much information as you have about the assigned customer(s). This includes all invoices, credit applications, lease agreements and any other documents that you feel might help us in the collection process.
How Much Do You Charge?
When allowed by a provision in the contract between you and your customer, are commission fee can be added to the total balance giving you 100% return on assigned dollar amount and costing you nothing. When no provision exists, all of our services are offered on a commission based fee structure. Which means, if we do not collect the money, you do not pay a fee. For information on our rates, check out the rates page. If you have any questions feel free to contact our sales department at (406) 556-9720.
What Is Pre-Collect?
Once the customer is assigned to us, they have 15 days to pay you. if the customer does pay you, you don't owe us anything. After the 15 days, if the customer has not paid, they go into full collection. At which time, the commission rate takes effect.
Do You Have Payment Plans For The Customer?
Yes, we may attempt to set up a reasonable payment plan depending on the situation to help the customer pay off their debt. If the customer is short on cash and in need of a payment plan, we are willing to work with them to get their debt paid off.
How Can I Go About Getting An Update On My Customer(s)
Feel free to contact your sales representative at (406) 556-9720 at any time for an update on your customer(s). However, as mentioned before, the collection process does take time.
Do You Report The Accounts I Place To Credit Bureaus?
Yes. Five Star Collections does report all non-disputed accounts to credit bureaus after 30 days. A recent Collection Market Survey reported a 10% higher recovery rate for those accounts that have been reported to a reporting agency.
What Forms Of Payments Do You Accept?
We accept all sorts of payments. We Accept cash, checks, credit cards, check by phone, money order, ect.
Why Do I Need A Collection Agency?
Collection agencies provide that very important and powerful third-party impact. By utilizing a collection agency as a part of your collection process, you communicate to your customer that you are serious about collecting the debt.
What Is Skip Tracing?
Skip Tracing is the art of locating an individual (witness, defendant, or debtor) who has disappeared or "skipped" from his/her last address to evade an obligation. To state the obvious, the milling individual is the "skip' and the "tracing" is the investigation to locate him or her. We invest the necessary time so you don't have to. Just send us the documents and we will take care of the rest. Prices vary depending on the degree of difficulty.
