Is it possible to Negotiate Debt Collection Rates?

I’m need to collect some past due accounts. Do collection agencies give volume discounts?

Yes, many good collection agencies will offer a discount if your company places multiple accounts or the balance is very high or the account is new.

Typically, there are 3 rules to follow to determine what rate your company will be charged:

Balance due. If you have a past due account totaling $5,000 or more, your company might be able to get a discounted rate.

Age of account. A past due account that is 60 days old has a greater chance of being recovered than a 730 day old account. Collection agencies that get paid based on 100% commission will not have a large incentive to work on older past-due account, much less offer you a discount on them.

Volume discounts. If you have many accounts to collect, you should be able to secure a discounted rate. For example, if your company has twenty five delinquent accounts for 25K that are less than a year old, it should get 30 percent to 35 percent off regular price, unless you entered into a different kind of arrangement.