Entrepreneurship & Small Business

collection agency in the US, is paying a retainer a red flag?

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  • May 11th, 2011 7:53 pm
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[OP]
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May 18, 2004
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collection agency in the US, is paying a retainer a red flag?

I'm trying to recover money from a company in the US that owes a fair chunk,
i found some agencies working in the same state and figured they would be the better choices for it

one of them has the lowest rates for recovery, but requests a retainer of $500, which will be deducted if they succeed in getting the money back. they have a 20% fee if collected within 30 days and 15% if beyond 30 days.

personally i'm a bit weary as for me it sounds like a win-win situation for them, if they get money they make out well, if they dont, hey at least they got $500 out of it. where i am stuck with nothing.

i'm also a bit unsure about court costs, it seems to me that they all require money if that happens, which again, seems a way to ensure they never "risk" anything

so i'm hoping someone here has some experience they can share on collections in the US and what to watch out for.
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Dec 12, 2006
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Barrys Bay
lowest rates for recovery and want a deposit... move on...I'd rather offer up 30-40% on recovered funds to a good company..on a 30 day recover and 25% onwards..... they will work there as-ses off.
Sr. Member
Mar 3, 2010
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Don't do it, call Alexander and Hamilton, t: 800-627-2539 x 344 (Bora Ozkan). You pay only if they recover and I think it's bit less than 30%.
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Dec 13, 2007
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Toronto
20% is not the lowest rate. Unless you talking about small amounts. I've dealt with RMS in states. It the company that UPS uses for their collections. Rate was below 20%. And no retainers.

Court is really difficult avenue. Only worth if you have a lot at stake, like 30K or more.
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Dec 13, 2007
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theguyz wrote:
May 11th, 2011 12:46 pm
lowest rates for recovery and want a deposit... move on...I'd rather offer up 30-40% on recovered funds to a good company..on a 30 day recover and 25% onwards..... they will work there as-ses off.
Don't get your hopes up. Usually if the company does not pay they have real issues. Collection agency are strictly regulated. All they can do is nag, and nagging can only go so far.

I used them twice, once it worked, the other one did not.
[OP]
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May 18, 2004
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slavka012 wrote:
May 11th, 2011 5:04 pm
Don't get your hopes up. Usually if the company does not pay they have real issues. Collection agency are strictly regulated. All they can do is nag, and nagging can only go so far.

I used them twice, once it worked, the other one did not.

yeah that's partially what i'm worried about,
i'm pretty sure it will have to be forced for them to pay, e.g. going through courts.

is it better to go through a company in the states or one here to try and collect? or should i simply seek out a lawyer instead?

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