Elggren & Peterson, P.C. v. Collection Agency
Creditors have two options in the collection of their receivables. The accounts can be turned over to a collection agency or to an attorney. Collection agencies can write letters and make telephone calls to the debtors. A collection law firm can do these things plus far more. We can also file suit, obtain a judgment and then obtain payment on that judgment using post judgment remedies such as bank and wage garnishments and seizure of assets.
Collection agencies charge an excessive percentage of dollars collected because in the likely event they are unsuccessful in collecting money, they must then turn the files over to an attorney which requires them to split the percentage of dollars collected with the lawyer.
As the debt you are trying to collect ages, the likelihood of collecting the debt decreases significantly. Naturally, in an attempt not to split fees with an attorney, collection agencies try and work the account for months if not years so they do not have to split fees with the lawyer that easily could collect the money during the collection agency stall period.
These important differences are of significant value to our clients. Given the nature of our business and the fact that there is the name of a law firm on the letterhead of all correspondence sent to debtors, we are able to obtain better results sooner than a standard collection agency. Many people are accustomed to receiving dunning letters from collection agencies but when faced with the real possibility that a local law firm may commence a legal action against them they will contact us and make payment arrangements.
Contact our office if you would like to discuss collections matters further with our of our lawyers.