Pre-Collection Services
Pre-collection services are intended for situations where the volume or the type of referrals does not warrant full collection services. In many cases our clients feel that making the commitment to refer accounts to a collection agency is extreme for certain situations. For example a company that realizes collecting on delinquent accounts is counterproductive may ask that United Pacific take over collection efforts much earlier in the credit cycle. We will then undertake a predetermined collection effort that includes mailings, telephone contacts and possibly even field visits. United Pacific will in effect take over a portion or all of the responsibilities normally assigned to the company's accounts receivables department. Not only does this help the company keep receivables in control but this also allows United Pacific to be more effective in general collections since we have a greater history with the debtor.
Scope of Work:
Pre-collection Services include the following:
- Customized program specifically identifying actions to be taken prior to actual referral of accounts for general collections.
- United Pacific will advise the debtor that the account is with our office and may be subject to general collection efforts if payments are not made to bring the account current. Contact will be made initially via mailings and followed up by telephone contacts.
- Initial pre-collection notice.
- Telephone follow-up.
- Second notice, warning of possible referral to agency for full collection efforts.
- Telephone follow-up.
- Third notice; advise customer that collection efforts will be commenced against the account including addition of interest and collection costs.
- All communication with the debtor is fully documented.
- Field collectors are available to pick up payments and meet with debtors in person.
Fees & Costs
The basic pre-collection services outlined above will be performed at the rate of 25% of all payments made by the debtor each month until the debt is paid in full or settled. This will allow a monthly remittance to CLIENT equal to 75% of the amount collected in the prior month.