So why do tradees use collection agencies to look after their collections? Could it be becuase it normally won’t possess the time for you to maintain collections themselves? Isn’t it that massive of the deal there for they could promote your debt to the person else?Or perhaps is it consequently of if you will find any illegal practices the trade can disguise at the rear of the fact the range agency used to be the main one gathering?
Retired bookworm says
Different businesses have different policies about collections, but many, especially medical offices, send out normal bills but if you’re not immediately responsive, they turn it over to collection. It costs them money to do so, but it’s worth it to them because this isn’t their core capability.
For the most part, businesses don’t have the time or expertise to act as their own collection agency.
Th a couple of reasons. You got the first one right. The company doesn’t have the personal to handle this chasing. It takes training on how to chase how to talthe people owing money. The company sells your debt to the collection agency for some small amount, maybe $0.20 on the dollar. For every $100 of debt the company would get $20. The other $80 would be written off in taxes.
The company does not have to worry about the debt again. From then on if the collection agency messes up it is the agencies problem, not the company.