Understanding The Percentage Fee A Commercial Collection Agency Charges
You will find that most commercial collection agencies will charge you on a percentage basis. It is important to understand what you are being charged for here. Basically what the commercial collection agency is doing is charging you a percentage of the money that they are able to obtain for you from any delinquent accounts that you may be owed. The percentage that you are charged will vary from one agency to the next.
While some agencies will charge you 10%, you will find others that will charge you 50%. Make sure that you read the contract carefully though because there should be a clause in there that states that if the agency is unable to retrieve any money for you, then they will not charge you any part of this fee at all.
Many of these agencies will also charge you a higher percentage on older accounts because these accounts are very difficult to collect on and thus the agency will have to spend more money in order to do so.
The agency is also going to have to put more work into such accounts, especially if you or another agency has already been unsuccessful at collecting this debt.
