Some Frequently Asked Questions

The Flat Fee Collection model works best for claims that are 1 – day past due all the way to 120 days past due. This is because we use cordial collection tactics and gentle reminders in phase I to collect on accounts and the claims that are less delinquent have the highest chance of recovery. Flat Fee collection means we will be collecting on claims against a fixed fee for each claim, without any further charge. We will implement a 60-day effort on these accounts to recover the amount which will include omnichannel communication, debt validation, dispute resolution and NCOA scrubbing. After this, all the accounts that are not recovered in the flat fee model will move to the second phase automatically.

The Contingency Collection model is best for claims that are seriously past due 120 days or above. These accounts are harder to collect because they have been restricting cash flow for a long time and the possibility of payment by the customer is lower on these accounts. In contingency you pay a commission on every account that is collected rather than an upfront fee. This is where we offer our no recovery, no charge option, so you only pay us if we manage to collect the amount of the account. Contingency is a feasible option for you as a client since you don’t have anything to lose if the account doesn’t get collected. But another reason that contingency model works best for accounts that are seriously past due is that we will deploy our highly trained debt professional agents and more persuasive collection techniques on these accounts to reach out to customers to recover the debt. With the doubled efforts, your accounts are more likely to be recovered with these attempts rather than in fixed fee where we will do a limited amount of outreach to collect the amount owed. Additionally, you will be eligible for discounted rates if you come from Phase I into Phase II where your claims will be worked on at discounted rates. However, you should consider early intervention with first party collection to ensure your accounts are recovered efficaciously and efficiently.  

CollectCo is best suited for businesses that have mid to high volumes of past due claims. If you have a low volume of claims, you can buy the minimum package and use it over time.

Yes, you can buy more than 100 claims at a time. Depending on the volume of your claims, you can purchase different packages that have a set number of claims within them. You will have the option to buy as many packages at a time as you like. For example, if you have 500 claims and you find the 100 claim option viable for you. You can buy 5 packets of 100 claims against fixed fee to get collection services for all 500 of your claims. Please note that there is an expiration date to the claims package. If you haven’t used your claims for a year, they will expire.

It is not recommended that you use the flat fee for all your claims unless certain criteria are met. If all your accounts are under 150 days past due, they will be ideal for flat fee collection, if they are above 150 days past due, it will become challenging to collect them in flat fee because greater persuasion and negotiation is required to persuade the costumer to pay the amount owed. Flat fee is ideal for accounts that are 1-day to 150 days past due. These accounts are easier to collect with gentle reminders and less persistent efforts because borrowers are more likely to pay if the debt is not very old. Additionally, a flat fee model is not ideal for accounts under $2500 and we don’t recommend flat fee to be used for older accounts. While we will accept older accounts, it is best to use flat fee for accounts within the days past due mentioned above.

After the dedicated 60 day efforts, if your flat fee claims are not collected, they will roll over to Phase II automatically, where they will be processed with persistent collection strategies through our professional agents. These accounts will then be worked on until they are recovered with a contingency model, where you will only pay a commission on the accounts that are collected, and nothing, if the accounts remain uncollected in this phase as well.

No. You will only pay an upfront cost for each claim in Flat Fee, and you get to keep 100% of what is recovered for you in Phase I Flat fee model.

Rollover is a process that comes into play when we have already conducted a 60-day effort to collect your accounts with flat fee. Within this time, we use various communication techniques to reach out to customers and recover the debt. Accounts that have not been collected in the 60 days will automatically be rolled over into a discounted rate, contingency model.

The roll-over is a process where all the accounts that remain uncollected with your Flat Fee model will automatically roll over to Phase II, Contingency Model where you will get persistent efforts on those accounts. Once the accounts are rolled over, they will be subject to charges and commissions outlined in the contingency model. This rollover is only applicable if you had accounts previously in the Flat Fee collections model that were left uncollected.

Typically, you can’t opt out of the rollover, but based on your needs you can discuss your collection strategy with our customer service agents.

You don’t have to pay any additional amount when your accounts rollover to contingency. Once your accounts are in contingency, there are consistent efforts made on them to ensure they are recovered. Only if your accounts are recovered, you will have to pay a nominal percentage of the recovered amount to us and you get to keep the rest of the recovered amount.

Phase I guarantees collection efforts, but Phase II handles uncollected debts at a discount. This is because Phase II deals with older delinquencies where recovery timelines are uncertain. If you use contingency collection directly (skipping Phase I), the rate reflects the variable delinquency stages of these accounts.

If you start with flat fee collections, you will act early on accounts that are still easily recoverable and you will achieve a higher recovery rate as well as a better ROI (Return on Investment).
If you switch to Contingency fees, you will be working with accounts with higher delinquency rates, and the contingency model will enable you to pay only if the amount is collected so you can minimize upfront costs.  

You have the option to collect with your company brand with fixed fee collections. To preserve your customer relationships, we will use your company brand name to collect on your behalf with our collection capabilities. You won’t have to worry about alienating your customers and you will also have some control over your collection process.

We offer two options:

• Early Intervention (First Party): Recover most debts quickly using your brand and our expertise (staffing included).
• Flat Fee Collections: Our expertise at a fixed fee for efficient debt recovery.