OT: Anybody Know Anything About Running a Collection Agency?

[muscle96ss]

I just had an incredible brainstorming session while lounging by the pool. I am seriously considering starting a collection agency specializing in helping doctors and medical professionals collect money from patients and insurance agencies that is owed to them. However, I know nothing about the collection agency business and the proper way to get started both legally and legistically. I have learned in life that the best way to achieve success in anything is to talk to people who have already successfully done it and model yourself after them. Is there anybody out there that knows anything about the collection agency business that is willing to lead me in the right direction?

 

[tomsawyer]

I dont know much about running one..but have thought about the same thing as you!

 

[uncle-jimmy]

I know how to run FROM them

 

[csuperman]

I know there are tons of laws you must follow such as the fdcpa, as well you have to be liscensed in the states in which you are collecting.

 

[Pekkerwood]

I am not, nor have I been in the collection agency business. My friend, a collection attorney, owns a very large one and I pick up a few things.

1. You need affilliation with an attorney. The threat of a lawsuit is a good tool.

2. You need to become ultra familar with the Federal Fair Debt Collection Act (or whatever its called)

3. You need to acquaint your self with the laws in the specific states you will be trying to collect from. They have various rules that apply to various forms of consumer debt, involving time constraints, etc.

4. The technology investment is non trivial. Autodialers and contact management software are standard in most firms.

5. Please be aware that competition for business is intense. A way to break in may be to subcontract for another larger firm in town until you can get enough clients of your own.

6. Collection agents are quite challenging to manage. They can get a job almost at will, and employee turnover is incredible. Employee retention is a key to survival.

7. Their are a few websites that auction debt to be collected. More and more companies are selling off their bad debt rather than placing it for collection and paying a percentage.

Hope this helps.

 

[inoverdrive]

I dont know about medical but credit card companies do sell off the bad paper to collection companies. So the collection companies are really not "representing" the credit card companies. Another thing I found out is that when you do talk to them, tell them that the so called debt is uncollectible. Technically they can not do anything. Im in the car business and i see it alot.