Posts Tagged ‘consumer collection agency’

Do you know how many patients your medical collection agency collected from last year? If you don’t, how can you evaluate their effectiveness or your return? How could you possibly be aware?

Although patient balances forwarded to a medical collection agency are often considered “lost causes,” there would be little point in using such services if that were always the case. Logic dictates this much. Some of the reasons are as follows: Some patients simply do not respond to practice statements or internal collection letters. They will, however, respond when a collection agency states it will report their failure to pay to credit bureaus. Collection agencies have a number of resources on their hands. If reporting a debt to a credit bureau does not work, there are attorneys on hand that can assist you with problem consumers who refuse to pay.

It is a given that most medical practices acknowledge the need for collection agency services but they should evaluate and manage this collection method just like any other. Practices should have a full understanding of the terms of the agreement with their collection agency and the results of such arrangements; they must also understand how their own internal processes affect the agency’s success. And internal processes do have an enormous effect on the amount of money that you can collect.

Here are six questions you should ask when evaluating your current collection agency.

What is the total dollar value of accounts placed with the collection agency last year?

What is the protocol for turning accounts to collection?

What is the average age of transferred accounts?

What percentage of transferred accounts had balances less than $50?

How much did the agency collect last year?

What fees does the collection agency charge?

What reports does the agency provide?

Mallory McGuinness works for a collections agency that works with a debt collection lawyer. She also does stories on business and finance, consumer spending and collections agencies.

Almost everyone who has been in debt has received the dreaded telephone call from a collections company. But oftentimes one phone call turns into twenty, and even worse, an agent may be aggressive and threatening on the phone.

While it may be true that collections agents are trying to collect a legitimate debt, more and more negative attention is being focused on unfair and aggressive policies that some companies have been using.

Some of the more aggressive practices caught the eyes of James Caldwell, Louisiana attorney general and Washington attorney general Ron McKenna who have both promised to make accounts receivable management firms and their owners clean up after their acts.

In fact, Caldwell has already obtained injunctions on January 8th against two collection companies that weren’t complying with the standards that have been set for obtaining debt.

On the same day McKenna said that his office had just come to an understanding with a collection agency that agreed to comply with new restrictions that have been established.

Some of the new boundaries that these collection agencies must comply with include more effective communication. This means that any harassment, intimidation, threats, profanity, or attempts to embarrass the debtor are now out of the question.

With these new settlements, these collection agencies under close watch will no longer be able to intimidate debtors through threats such as failing to pay a debt will result in a suspension of the debtor’s driver’s license.

Finally, although these collection companies are able to lawfully report debts to credit reporting agencies, they are no longer allowed to threaten debtors with impairment of their credit rating.

Although collections agencies are justifiably trying to collect a legitimate debt, there are two issues to consider. People who owe money are just thatpeople, who deserve to be treated with respect and dignity. More importantly, if a debtor is terrified of an aggressive collections agent who calls them constantly they very well may just stop picking up the calls, leaving themselves in debt, and the collection agencies with nothing.

Mallory Megan works for Rapid Recovery Solution , a debt collection agency and writes articles on collections and finance.