Here are 5 tips of what you need to know when hiring a collection agency.

Check their Credibility.

What does their Better Business Bureau have to say?  What grade do they have?  Never settle for anything under an A.  Depending on the state you are in there can be different regulations for collection agencies.   Be diligent and sure they are bonded and licensed.

Know their Expertise

It is wise to know what type of collection agency you are looking for before you begin your search.  Some only specialize in niche industries.  For example they may only handle medical or certain size business.  Just be sure they handle your type of debt.

 Be sure the Agency is Insured

This is not an option.  No matter how much due diligence you do, there is always that possibility that the collection agency could use scare tactics that the debtor feels could be considered in bad faith, so you want to confirm they carry their own insurance


Confirm they have access to Skip Tracing

We would like to think this never happens, but some debtors leave town to not be found. Make sure you are working with a good collection agency as they will have access to several databases.  This allows them to locate the debtor even though there is no forwarding address.  Also ask if they use social media to also look for their location.

Know How They Charge

You are now trying to make up your mind between a couple of great collection agencies, who do you choose?   Know how they charge and compare the costs.  A good collection agency typically doesn’t charge upfront.  They usually only are paid if they collect.

This is known as a contingency.  Typically, they will charge anywhere from 25% – 45% of the total due unless otherwise negotiated.

If you choose to work with debtors, it can be time-consuming, frustrating, and emotionally taxing.  Your staff can spend their time building business and let the experts do their job at collecting.


MCA is a third-party debt collection agency that has been in constant business since 1950. We are rated A+ with the Better Business Bureau and we pride ourselves on excellent customer service along with delivering great recovery rates. There is no cost to you unless we collect it! Why not try and re-coop some of your past due accounts with no out-of-pocket expense?