How do collections work?

Collections are unpaid debts, either managed internally, or sold to a collections agency who then recoup the debt on behalf of the company. They will contact the debtor and work with them to resolve the debt.

Why hire a collections agency?

If your company has outstanding debts to several customers or clients it may be difficult for you to obtain these without significant time and effort. By hiring a collections agency you can outsource this task, and have your debts recovered in a professional and timely manner.

What happens when you're sent collections?

When you're sent collections you are given a variety of ways to pay your debt. Collections come with instructions to pay so you can manage your debt. There should also be a phone number or another way for you to contact the agency if you have questions or need support.

What happens if you ignore a collections agency?

If you ignore a collections agency's attempts to contact you there is risk that they will escalate the debt through the legal system. There are several ways you can check if the collections agency is legitimate or not. The collections note should for instance have an identifier, such as a reference number, which is unique to you.

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