Debt Collection

[MrHard]

Has anyone used debt collection agencies to collect unpaid debts or lost chargebacks, or reported unpaid debt directly to the big credit agencies which will effect credit scores?

Mediating chargebacks with banks is quite common, I'm talking about the next step. Leaving the banks out of the equation and going solo on debt collection.

How successful has this been in people paying their debts and how long did it take?

[ItsAllBallBearings]

would have to be a pretty substantial debt for it to be worth it. I'd pursue via small claims court before i sold a piece of the debt to a collection agency. Most small claims courts also allow you to sue for a multiple of the original amount

[MrHard]

I'm talking above 1k at least. The commission seems to be around 30% recovered. Not bad since these are clear cut losses, no chance of recovery. Fortunately, it does not happen that often, but am less inclined to just write it off these days.

With a collection agency account all unjustified chargebacks or unpaid invoices can just be shifted to collections easily and there is no time wasted, they do all the work (if it works and is not just harassing people, which would be counterproductive).

By the time you get airfare, hotel, rental car, loss of time and working hours, plus the stress of facing someone in small claims in another state, researching if you can even sue them in that state...

What I am worried about is the possibility of the bad debtor suing us for the debt collection, or us not having the proper proof as required by a court in their home state that justifies the collection. I guess getting a lawyer would be necessary to be completely safe in this regard.

Collectors can use some nasty tactics from what I have been reading and are covered well legally I assume, but not sure how covered we would be here, for example from the collector ruining someones credit or harassing customers or employees at the debtors business.

[Essex_boy]

Forget about it. Ive yet to find a debt collection agency that is any good, many charge for a trace but then fail to collect anything.

Build your expected losses into the price and place this sales money in another account, so you are in a way self insuring