If someone owes you money and you want to use a debt collector are they expensive?

Answer 1

I have had several occasions where I have to chase people down for debts. It's been my experience that collection agencies are not really interested in talking to you if you only have one debt to collect, and if it's not at least $2000. I had a few that turned down my $600 debt.

They will want at least 30%, sometimes as high as 50%. If you are a large business that can give them a lot of business, you can easily negotiate that percentage down. But for single accounts its not likely.

I've also found that if they do accept your small collection, they don't work that aggressively. They will send out the usual letters, and make a few phone calls. But when they have to sue or do more work, they won't waste the energy. If your contract does not clearly state that the cost of collections can be recovered, that makes it even worse. Legally collection agents can not charge for their services unless it's in the debtors contract.

Therefore, I did my research and learned how to collect them myself. Small claims court is simple. The hard part is collecting the money. But many states have laws that require the debtor to disclose their income and property. Once you have that, the collection part is easy.

For starters, do a search on the net for "small claims court " and see what's involved.

Answer 2

You can negotiate with the debt collector to act as your agent. They will take about 30%. There are also some companies that buy debts and they would offer much less.

If you take debtor to court and get a judgment, you would still have to process paperwork to attach his back account or other assets or garnish wages. You might still have to get a debt collector. Getting a judgment doesn't always get you paid.

Answer 3

You usually sell contract to the collector. Depending on their estimation of the collectbility, you could be facing a steep discount.
If are owned something less than a couple grand, sometimes taking them to small claims court is a cost effective way to obtain a judgement and begin attaching assets and even garnishment. Check you States limits and policies on this.

Answer 4

Yes.

Usually debt collectors buy debts for pennies on the dollar.

Others will charge at least 50%.

If you have a written contract, then just get an attourney and sue them... its cheaper.

If there is no written contract, you wont get your money, so forget about it.

Answer 5

you nevertheless owe the money -- as somebody observed -- "the fee of the ordinary public sale probably replaced into merely coated via the quantity they won from you junk" besides in spite of in case you probably did make some money from public sale the belongings you're nevertheless in charge for the diffrence ( ie $422 - the money created from the ordinary public sale).. factor of it this sort -- let's imagine you owe $5000 on a television you at the instant cannot pay -- the business enterprise reposses it and then auctions it for say $3000 -- if so you nevertheless owe $2000 even however you now not have the television

Answer 6

If you have enough evidence, take the person to small claim court. It's cheaper that way. Maybe Judge Judy will have you.