If you are an individual or small business owner and you don't have staff to call your customersregarding collecting unpaid debt, you may want to look into hiring a collection agencyto collect the debt. You have a better chance of receiving the moneyby using acollection agency because your debtor will take the matter more seriously. Collection agencies usually charge between 15% and 50% of what they recover.You willstill end up with more moneythan if you try to collect the debt onyour own. When selecting a collections agency, you should ask the following questions:
Some collection agencies will purchase a group of debts for a percentage of the amount owed. Typically that amounts to 1% to 5% of the face value of the debt. When they collect, they make a profit on the difference they paidfor the face value of the debtand what they collect from the debtor.
If you decide to sue your creditor, you shouldspeak with a debt collection attorney to assist you.The attorney canexplain your rights and legal remedies. The attorney will represent you in courtandhelp you collect on any judgment you obtain against the debtor.