Collection Agencies Article Author: Jan Conte
Over the years many of my clients have asked if Final Notices are required prior to account placement with a collection agency. The answer is no – you are not required to send a Final Notice prior to placing your claim with a collection agency. However some of my clients have found that this step brings them positive results, as the threat of sending the claim to a collection agency can inspire the debtor/customer to finally contact them with payment arrangements. So are they effective? Sometimes. Some of my clients like sending Final Notices because this step makes them feel like they have done everything they could before placing the claim with a collection agency. The last attempt to get the debtor/customer’s attention also helps the client to feel better about having to pay a collection agency.
If you choose to send a final notice make sure to use concrete time frames and consequences. A final notice could say something like this, “This is your Final Notice. You have until July 10, 2007 to contact our office with payment arrangements. Otherwise your file will be referred to our collection agency.” Be sure to stick to your deadline and forward the claim to your collection agency immediately after the deadline, so that the debtor/customer knows that you mean business. Wishy washy behavior will send the message to the debtor/customer that there are no real consequences for their behavior. Think of the Final Notice as another collection tool and if you’re going to use it, use it well.
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