When months have passed and a debt has yet to be settled, aside from a sense of dread that you will never collect on an unpaid invoice, as well as frustration, it can be difficult to know what the next best move might be.
When it comes to collecting an unpaid debt, especially in the transportation collections industry, there are a variety of steps an individual can take to attempt to secure any lost debts. One of the most common routes is to contact a collection agency to collect, lawyer up, or sell your debt to a collection agency. If you have decided that all options have been exhausted and it is time to reach out to a collection agency, here are some important things to note before contacting a reputable agency to facilitate your collection needs.
What To Know When Contacting Transportation Collection agencies
Not all collection agencies are the same. When you are looking into contacting a collection agency it is not only important to investigate the list of services offered, but also the reputation of the company itself. When you hire a collection agency, they become a representative of your business, so it is always reassuring to know that the company you work with adheres to the strict laws regarding collections & soliciting delinquent debtors. While it can be a frustrating situation to deal with, it is always best to find a company that will treat past clients with respect.
What To Expect From A Transportation Collection Agency
A common misunderstanding about collection agencies is that they are debt collectors. While there may be collection agencies out there that deal in both spectrums, it is important to know the difference, as this is a key point in determining which route is best for your current situation.
A Collection Agency will normally operate on a fee-based structure, this structure can vary from company to company, some agencies operate on a contingency-based fee where others may utilize a percentage-based fee on collections. The important thing to note is that when a collection agency receives a payment from the debtor, that payment is passed onto the owner of the debt, minus an agency fee.
The level of service collection agencies offer will vary from firm to firm. Generally, most agencies will provide services like demand letters, phone calls, emails, online portal access, skip tracing, and even litigation, if necessary.
A Debt Buyer will purchase your outstanding debt at a reduced rate, thus giving you some form of closure on a delinquent payment, however, once that debt is sold you cannot collect any further as that debt is no longer legally yours. Once an agency purchases your debt, they are free to pursue at their own discretion.
Why Choose AWA for Your Transportation Collection Needs?
AWA operates on a contingency fee basis, meaning, if we cannot collect, you owe us nothing. If collection efforts are successful, our rates will be based on how old and how much the debt is, if there is a damage claim, and whether the debtor is in or out of business.
If you have unpaid freight invoices and aren’t sure what to do next, visit our contact page or call 662-892-8591 to speak with one of AWA’s client specialists today!
For more information on our agency practices and methods, view our AWA Collection Process Pag