We will start this article with a straightforward answer.
Hiring a local collection agency has Zero or negligible benefits.
Hiring a collection agency is completely different from hiring a local plumber or a carpenter. Just because a collection agency is near you should not qualify them as your first choice. When it comes to hiring a collection agency – bigger is better.
Buy Why – Let us dig deeper?
- While proximity might make a small collection agency seem appealing, it’s important to be cautious about their compliance with comprehensive debt collection laws set by federal and state governments. So don’t fall for an agency that may not be 100% compliant or may not keep your data as safe as your bank. All collection agencies are required to follow GLBA data security laws, similar to other financial institutional like large Banks and Credit Unions. Handing over your customer private data to a non-compliant agency can leave you in a huge mess.
- Adhering to laws like FDCPA, GLBA, HIPAA, TCPA, CCPA, and more involves significant financial investment (usually running into tens of thousands of dollars each year), often beyond the reach of smaller agencies. Consequently, many smaller agencies are struggling or even closing down due to the stringent and expensive requirements imposed by the Consumer Financial Protection Bureau (CFPB), making it crucial to ensure that any agency you consider is fully compliant with all necessary regulations.
- If your debtor relocates to another state, a locally based collection agency might not be effective. Choosing a collection agency with licenses in all 50 states ensures they can pursue debt collection regardless of the debtor’s new location, providing uninterrupted service and greater flexibility in recovering debts.
- Local presence matters only when you decide to file a legal suit against the debtor, however all large nationwide collection agencies have tie-ups with hundreds of lawyers covering entire the USA.
- Large collection agency services may actually be more cost effective due to their volume.
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Common Myths about Local/Small collection agencies
- Myth: Local collection agencies are likely to have in-depth knowledge of the laws and regulations.
Wrong: Debt Collectors of large collection agencies are 100% aware of the regional laws. Without which their license to recover in your area will be revoked in no time. - Myth: Local agencies may provide more personalized service compared to larger, national agencies.
Wrong: Broadly speaking, the concept of personalized service in debt collection is incorrect. There are strict government regulations that all agencies must adhere to. However, many large collection agencies offer the convenience of secure online client portals. These portals enable you to submit and update accounts, as well as check the status of existing accounts at any time, 24/7. This not only saves time but also provides the flexibility of accessing online updates outside of regular business hours, including weekends. - Myth: If necessary, there’s the possibility of in-person interactions if I hire an agency near me.
Wrong: In our 22 years of debt collection experience, we are yet to come across an agency that will personally meet your debtor. In fact this may be to risky any may lead to unnecessary complications. All calls made to your debtor are required to be recorded by law and any postal communication needs to be documented. A phone call or collection demand can originate from anywhere in USA.
Unique Features of CA-USA
- What sets CA-USA apart is its commitment to transparency and accessibility. With over 1300 reviews, the agency boasts an impressive average rating of 4.9 out of 5, reflecting its high client satisfaction.
- Free Bankruptcy screening.
- Free Credit Bureau reporting in contingency collections.
- Free Change of Address check and Litigious defaulter check.
- Accounts can be further recommended to one of our national network of lawyers for filing a Legal suit to recover money.
- We can perform debt collections in both English and Spanish.
- Apart from B2C collections, we also have a dedicated Commercial Division for B2B collections.
- Serving Nationwide ( Licensed in all 50 states and Puerto Rico).
- CA-USA has consistently passed SSAE 18 SOC 1 Type 2 data security compliance. We are also FDCPA, GLBA and HIPAA Compliant.