This text has undergone thorough fact-checking to ensure accuracy and reliability. All information presented is backed by verified sources and reputable data. By adhering to stringent fact-checking standards, we aim to provide you with reliable and trustworthy content. You can trust the information presented here to make informed decisions with confidence.
Selecting a debt collection agency is critical for recovering unpaid debts while maintaining compliance and protecting your reputation. By 2026, the U.S. debt collection industry is expected to hit $13.6 billion, with over 5,400 agencies operating. Here’s what you need to know:
| Agency | Specialization | Key Features | Reputation | Pros | Cons |
|---|---|---|---|---|---|
| Fair Capital | Healthcare, Consumer | Credit bureau reporting, skip tracing | A+ BBB rating | Strong compliance, no upfront fees | Limited to 23 states for consumer services |
| Summit A*R | B2B, Medical, Dental | Ethical practices, skip tracing | A+ BBB rating | Low complaint rate, contingency fees | Additional fees for litigation services |
| IC System | Original Creditors | InstiCollect, Recovery Plus programs | A+ BBB rating | Nationwide coverage, flexible pricing | High fees after 180 days |
| Wakefield and Associates | Healthcare, Retail | Revenue cycle management, debt buying | A- BBB rating | High recovery rates for medical debts | High volume of consumer complaints |
| Credit Control, LLC | General Receivables | Debt settlement, early-stage collections | Workplace awards | Strong partnerships with major banks | Consumer complaints about debt validation |
| The Kaplan Group | B2B (Commercial Only) | Legal support, skip tracing | A+ BBB rating | High success rate for large claims | $10,000 minimum for new clients |
| Massachusetts Collections | B2B | Litigation, global recovery | CLLA/IACC certified | No upfront fees, international reach | Small team size |
| STA International | B2B, International | Legal support, global collections | ISO 9001 certified | Strong global presence | Minimum debt thresholds |
| Coast Professional, Inc. | Government, Education | Loan rehabilitation, tax debt recovery | A+ BBB rating | Extensive government contracts | Limited sector focus |
| Transworld Systems, Inc. | Healthcare, Student Loans | AI tools, full debt lifecycle management | B BBB rating | Large-scale operations, advanced technology | Frequent complaints about harassment |
By aligning your needs with an agency’s strengths, you can improve recovery outcomes while protecting your business reputation.
Top 10 Debt Collection Agencies Comparison: Specializations, Fees, and Success Rates
Fair Capital focuses on three major debt categories: consumer, commercial, and healthcare. It manages commercial debt recovery across the U.S. while offering consumer debt collection in 23 states, including New York, Texas, Florida, and California. The agency serves a wide range of industries, such as SaaS, construction, government, retail, telecommunications, and finance. In the healthcare field, it handles collections for hospitals, urgent care centers, dental offices, and veterinary clinics.
Fair Capital employs a tiered approach called the "Fair Strategy", which begins with Soft Collections and escalates to standard and intensive methods as needed. It uses advanced skip-tracing technology to search through over 10,000 databases and 125 billion records to locate debtors and their assets. For added accountability, the agency reports delinquent accounts to major credit bureaus - Equifax, TransUnion, and Experian - where unpaid debts can affect credit scores for up to seven years.
Clients benefit from a 24/7 web portal that integrates with QuickBooks and provides customizable reports in Excel, PDF, or Word formats. If standard efforts fail, Fair Capital can escalate to legal collections, working with in-house or affiliate attorneys to pursue debts through the legal system.
Fair Capital has built a strong reputation, earning an A+ rating with the Better Business Bureau (BBB), a 5-star rating on Google, and memberships with ACA International and the NY State Collectors Association. It ensures compliance with HIPAA regulations for medical debt and follows FDCPA and FCRA rules. These credentials reflect its commitment to professional and ethical practices.
"Really a great service and the team is highly communicate, professional and most important, very effective!" – Tom Logan, CEO, Cohley
Fair Capital operates on a contingency model - "No Money, No Fee" - with fees typically ranging from 25% to 40% of recovered amounts. This means clients don't face upfront costs. Its Soft Collections phase helps maintain positive customer relationships before employing more assertive tactics. However, its consumer debt services are only available in 23 states, and pursuing legal action may involve extra costs beyond the standard contingency fee.
Summit A*R stands out for its ability to combine effective debt recovery with a commitment to ethical practices. Their services cover a wide range of industries, including commercial (B2B), consumer, medical, dental, and employee reimbursement collections [18, 19, 23]. Additionally, they handle collections for commercial tenants, education, veterinary practices, and residential apartments. What truly sets them apart is their P.H.D. (Preserve Human Dignity) Philosophy, which avoids aggressive tactics like robo-dialers or threats, ensuring client relationships remain intact [18, 20, 22]. This ethical foundation is key to their operations.
Summit A*R offers a range of services designed to recover debts effectively while prioritizing early intervention:
These offerings highlight Summit A*R's focus on early and efficient debt recovery while maintaining a respectful approach.
Summit A*R has built a strong reputation within the collections industry. They hold an A+ rating with the Better Business Bureau and boast over 100 Google reviews with an average rating of 4+ stars [21, 22, 23]. Since its founding in 1996, the agency has recovered over $160 million and resolved 25,300 accounts in the 12 months leading up to February 2026. Their performance metrics are impressive, with a consumer complaint rate of just 0.02% and recovery rates nearly twice the industry average [18, 21, 22, 23]. Furthermore, every collection professional on their team has at least 10 years of experience. Summit A*R is also a member of ACA International and the International Association of Credit and Collection Professionals (IACC), and they maintain compliance with HIPAA and PCI DSS standards [21, 22].
"Summit is the best collection agency I've ever worked with, and believe me, there have been a few!" – Ronald G., Consumer
Summit A*R operates on a contingency fee basis, ranging from 7.5% to 50%, with no upfront fees or minimum account quotas [21, 23]. Skip tracing and credit bureau reporting are included at no additional cost [19, 23]. Their dignified approach ensures customer relationships remain intact during the recovery process. However, litigation services incur extra fees, and the agency selectively works with clients who align with their ethical standards, which could limit availability.
IC System is a debt collection agency that focuses exclusively on serving original creditors, setting it apart from agencies that cater to debt buyers or third-party traders. Established in 1938, this family-owned company works across a variety of industries, including healthcare, dental, financial services, government, communications, education, utilities, and even pest control. Licensed and bonded in all 50 states, as well as in Guam and Puerto Rico, IC System provides a broad reach for its clients [28,31]. This targeted approach allows them to craft solutions tailored to the needs of original creditors.
"Our niche is to be the best, most trusted provider of receivables management services to original creditors." – IC System FAQ
IC System provides two main service programs designed to cater to different business needs:
Both programs include optional credit reporting to Experian, TransUnion, and CBC Innovis, as well as services like skip tracing and litigation referrals for high-balance accounts [29,31]. To enhance recovery rates, IC System employs its OmniTouch engagement strategy, which combines texts, emails, self-service portals, and live calls handled by USA-based agents.
IC System has earned an A+ rating from the Better Business Bureau and was the recipient of the 2021 BBB Torch Award for Ethics. The company prides itself on a 99.99996% complaint-free interaction rate, with only 6 complaints out of 14 million digital interactions [25,27]. It has also been recognized as a Top Workplace by the Star Tribune for eight consecutive years (2017–2024) and was named one of the Best Places to Work in Collections by insideARM in 2021. With an average client tenure of 16 years and 111 of its 300 employees belonging to the "10-Year Club", IC System demonstrates strong client and employee loyalty [25,30].
IC System offers several advantages, including its 100% US-based operations and nationwide licensure, supported by over 50 audits annually to ensure compliance and security [25,31]. Their ethical "people first" approach helps foster positive relationships between creditors and consumers. The InstiCollect program provides a quick online setup for small businesses, while Recovery Plus allows clients to retain all Phase One recoveries [26,29].
However, there are some drawbacks. The contingency fee for InstiCollect rises from 35% to 50% after 180 days, which may be a concern for some businesses. Additionally, the $75 setup fee could be a hurdle for smaller operations. Another limitation is that IC System exclusively works with original creditors, meaning their services are not available to other types of clients. These features highlight IC System's focus on ethical and effective debt recovery tailored specifically for original creditors.
Wakefield and Associates, established in 1946, has built a long-standing reputation in medical debt recovery and healthcare revenue cycle management (RCM). Its services cater to hospitals, physician groups, dental practices, and emergency medical services, among others. While healthcare is its primary focus, the company also extends its expertise to retail, e-commerce, and financial sectors. Operating as both a third-party collector and a debt buyer, Wakefield sometimes purchases delinquent medical debts outright, offering healthcare providers a way to improve their cash flow quickly.
Wakefield’s offerings are rooted in its healthcare expertise, but its services are broad and adaptable. With over 900 employees spread across eight offices nationwide, the company provides third-party debt collection and a debt purchasing program to manage delinquent accounts effectively. Its revenue cycle management services include claims processing, invoicing, and optimizing accounts receivable. Additionally, Wakefield’s early-out service tackles accounts before they are written off as "bad debt", often resulting in higher recovery rates. The company claims an average recovery rate of 80% for verified debts, with most cases resolved within 30 to 90 days. A recent merger with Revco Solutions, Inc. has further strengthened its healthcare RCM capabilities.
Wakefield holds an A‑ rating from the Better Business Bureau (BBB) but is not BBB accredited. Despite this, its consumer review rating on the BBB site averages just 1.01 out of 5 stars. The company has received over 800 complaints through the BBB and more than 2,500 in the Consumer Financial Protection Bureau (CFPB) database. It ranks #112 out of 2,458 companies in the CFPB Debt Collection Complaint Database. Common consumer grievances include allegations of overly aggressive collection tactics, attempts to collect debts that are not owed, and inaccuracies in reporting to credit bureaus. Still, Wakefield is acknowledged for its longevity in the industry, adherence to HIPAA regulations, and strong recovery results for its business clients.
Wakefield benefits from over 75 years of experience and a large operational scale, ensuring compliance with FDCPA, HIPAA, and state regulations. Its debt purchasing model provides healthcare providers with immediate revenue, and it often negotiates settlements for 40% to 60% of the original debt balance, particularly for medical accounts. However, the company’s high volume of consumer complaints raises questions about its collection practices and the potential for reputational risks to its clients. It has also faced class-action lawsuits for alleged violations of the Fair Debt Collection Practices Act. The gap between its solid BBB rating and low consumer review scores highlights a possible disconnect between its institutional performance and individual consumer experiences. Recurring complaints include harassment, failure to validate debts before reporting them to credit bureaus, and not updating records after resolving accounts.
Credit Control, LLC brings a customer-focused approach to debt recovery. Established in 1989, the agency operates nationwide, including Washington D.C., Puerto Rico, and Guam. It specializes in recovering debts across various industries, including financial services (collaborating with 13 of the top 15 largest U.S. banks), healthcare (hospitals and medical providers), telecommunications and cable, utilities, automotive finance, fintech lending, and higher education. Headquartered in Earth City, Missouri, the company employs over 500 professionals and emphasizes respectful, consumer-friendly practices. Credit Control is guided by the principle that "an unpaid account does not define a person", focusing on respectful interactions over aggressive tactics.
Credit Control provides a range of services tailored to maximize account recovery:
With a leadership team boasting over 150 years of combined experience, Credit Control delivers expertise across its service offerings.
Credit Control has received significant recognition for its workplace environment, including being named a six-time winner of the "Best Places to Work in Collections" program. In 2025, it earned accolades such as "America's Best Workplaces" and "Best Places to Work for Women". Additionally, it has been honored with client-driven titles like "Agency of the Year", "#1 Overall Agency", and "Highest Performing Agency".
However, the Better Business Bureau (BBB) and Consumer Financial Protection Bureau (CFPB) have noted consumer complaints. Issues include difficulties with debt validation, disputes over debts not owed, and challenges contacting the agency:
"BBB has received consumer complaints about Credit Control which allege contact from the company about debts not owed, difficulty obtaining validation of debt owed, and difficulty making contact with the company" – Better Business Bureau
Credit Control's partnerships with leading financial institutions and its strong workplace culture underscore its operational strength and credibility. The company's specialized debt settlement program also highlights its expertise in negotiated resolutions. However, recurring complaints flagged by the BBB and CFPB raise concerns about its customer-centric claims. These complaints, particularly around debt validation and communication, could pose reputational risks for potential partners. While Credit Control excels in operational reach and expertise, these challenges suggest areas for improvement in aligning practice with philosophy.
The Kaplan Group takes a focused approach by exclusively handling commercial (B2B) accounts. They specialize in managing large claims, ranging from $1,000 to $1 million, although new clients are required to submit an initial claim of at least $10,000. Their services cater to corporations, LLCs, partnerships, and proprietorships across various sectors like energy, manufacturing, healthcare, financial services, and advertising. Notably, they do not handle consumer accounts such as medical bills, credit card debt, student loans, rent, existing judgments, or debts older than three years.
The Kaplan Group emphasizes a personalized negotiation strategy, steering clear of automated scripts or auto-dialers. Their team of collectors, each with over a decade of experience, directly engages with decision-makers like CFOs and CEOs. The firm also offers in-house legal support through its own law firm, providing a "second effort" at the same contingency rate without additional charges.
Key services include:
Impressively, 95% of claims are resolved without the need for lawsuits, and 97% of successful claims never see a courtroom. This hands-on, tailored approach underscores the firm's commitment to resolving complex cases efficiently.
The Kaplan Group boasts an A+ rating from the Better Business Bureau and is part of the International Association of Commercial Collectors - a credential shared by fewer than 5% of collection agencies. With an 85% success rate on qualifying large claims, the firm has built a strong reputation. Founder Dean Kaplan, who has over three decades of business experience, has personally closed transactions worth over $500 million across 40 countries. Their expertise is frequently highlighted in respected industry outlets like Credit Today, InsideARM, and Accounts Recovery.
The Kaplan Group’s exclusive focus on commercial accounts, high success rate (85%), and contingency-based pricing (10%–25%) make it a strong choice for businesses managing large B2B portfolios. However, the $10,000 minimum for new clients may deter smaller businesses, and companies dealing with consumer debt will need to look elsewhere. For claims outside their scope, the firm offers a free referral network to connect clients with other reputable agencies.
Since its founding on January 1, 1976, Massachusetts Commercial Collections Agency has focused exclusively on B2B debt recovery, building nearly five decades of expertise in this niche field. This boutique agency's targeted approach has enabled it to craft negotiation strategies and legal solutions specifically designed for high-value commercial accounts. Handling both domestic and international debts, the agency helps businesses improve cash flow through effective recovery methods. Its commitment to this specialized area ensures a tailored approach to the complexities of commercial debt recovery.
With years of experience under its belt, the agency provides a range of commercial debt management services. Through first-party outsourcing, its agents act as an extension of the client’s team, managing early-stage receivables while maintaining positive customer relationships. For more difficult cases, it employs traditional third-party collection methods to resolve unpaid debts. When disputes escalate, the agency's litigation services connect clients with a network of attorneys to pursue legal action.
The agency also offers tools for analyzing debt portfolios, including business credit reports, background checks, and corporate asset/liability investigations. Its collaboration with Altus GTS extends its recovery capabilities to over 65 countries, making it a reliable partner for both North American and international debt recovery.
Massachusetts Commercial Collections Agency operates on a "no collect, no pay" model, ensuring clients only pay fees when debts are successfully recovered. Its services carry certifications from the Commercial Law League of America (CLLA) and endorsements from the International Association of Commercial Collectors (IACC). Partnering with Altus GTS, the largest B2B debt collection company in the U.S., the agency utilizes the ARM STRONG™ platform, which offers 24/7 claim tracking, call recordings, and detailed collector activity reports. Additionally, the agency adheres to Massachusetts regulations, such as the "2-calls-per-week" rule and Chapter 93A compliance requirements.
Massachusetts Commercial Collections Agency stands out for its decades of experience and exclusive focus on commercial debt, making it an excellent choice for businesses managing B2B accounts. Its contingency-based pricing eliminates upfront costs, and its global reach through Altus GTS ensures effective cross-border collections. However, as a boutique firm with a small team of 1 to 10 employees, it may not be equipped to handle extremely large portfolio volumes. Additionally, companies dealing with consumer debt will need to look elsewhere, as this agency specializes solely in commercial accounts.
STA International has been in the business of commercial debt recovery since 1955, giving it over 65 years of expertise. The agency focuses solely on business-to-business (B2B) debt collection, steering clear of consumer debt. Its client base spans industries like manufacturing, distribution, financial services, advertising, publishing, SaaS, higher education, and logistics. With offices in New York, London, and Mexico City, STA International operates through an extensive network of local collection agencies and law firms across more than 50 countries. Impressively, the agency managed to recover debts from 154 countries last year alone. In the UK, it leads the market in student debt collection, serving over 150 universities and colleges.
STA International operates on a contingency basis, meaning clients only pay if debts are successfully recovered. The minimum debt placement is $1,000 for U.S. accounts or £500 for UK accounts, with discounted rates available for portfolios ranging from $200,000 to $1,000,000. Beyond traditional debt recovery, the agency offers outsourced credit control, early-stage invoice recovery, and skip tracing to locate debtors using specialized databases. For cases that demand legal action, its "STA Legal" division collaborates with independent attorneys across the country. Clients also gain access to the Your Debts Online portal, a 24/7 tool for tracking updates and reports in real time.
STA International holds certifications such as CLLA, ISO 9001, and ISO 27001 (the latter achieved in April 2025), and it is FCA-regulated in the UK. Additionally, the agency maintains a $1 million surety bond. Over a recent 12-month period ending in early 2026, STA successfully recovered £20 million for its clients. These credentials and achievements underline its ability to deliver reliable results.
With a strong global presence and decades of expertise, STA International is a solid choice for businesses handling international B2B accounts. Its contingency-based pricing model removes upfront financial risks, and the agency prioritizes maintaining positive client relationships. However, its services are less suited for companies handling consumer debt or smaller invoices, as it enforces minimum debt thresholds.
For more than 40 years, Coast Professional, Inc. has focused on recovering debts for government and higher education sectors. As a primary contractor for the U.S. Department of Education, it manages educational receivables and student loans. Notably, it is one of just three private collection agencies contracted by the IRS to handle overdue tax accounts through the Private Debt Collection program. Coast also oversees delinquent nontax debts for federal agencies under the Bureau of the Fiscal Service's Cross-Servicing program. Serving over 200 institutions - including government agencies, colleges, and universities - it handles portfolios ranging from $30 to over $30,000.
Coast Professional tailors its debt recovery strategies to meet the needs of its specialized sectors. Beyond standard collection methods, the agency offers a loan rehabilitation program for student loans, requiring nine consecutive monthly payments within a 10-month timeframe. To locate consumers, it employs advanced skip tracing techniques, drawing on credit bureau data, property searches, social media, and proprietary employment locators. For cases requiring legal action, an in-house legal team provides support. Payment options include ACH, debit cards, wire transfers, and Western Union. All services comply with strict standards, including FDCPA, HIPAA, PCI DSS, GLBA, and FISMA.
Coast Professional has earned an A+ rating from the Better Business Bureau (BBB) and has been accredited since September 2018. It holds ISO 9001 certification for quality management and has undergone SOC 2 Type 2 audits for data security. Impressively, the agency achieved a perfect 100 Competitive Performance and Continuous Surveillance (CPCS) score for four consecutive quarters with the Department of Education, a distinction shared by only one other contractor. From October 2021 to April 2024, the Bureau of the Fiscal Service reported complaints against less than 0.02% of debts assigned to agencies like Coast. However, there have been 60 complaints filed with the BBB over three years and more than 20 complaints with the CFPB in 2021, primarily concerning inaccurate debt reporting and delays in validation.
Coast Professional stands out for its extensive government contracts and high performance in managing federal student loans and tax debts. The agency’s leadership team brings over 300 years of combined industry experience, and it has received multiple Training APEX Awards for employee development. On the downside, some BBB reviews highlight negative interactions with representatives. Additionally, the agency has been criticized for reporting defaults to credit bureaus and adding collection fees to balances. Taxpayers should ensure they verify the IRS Taxpayer Authentication Number in any communication, while consumers are encouraged to request written debt validation within 30 days of initial contact.
Transworld Systems Inc. (TSI) is the largest debt collection agency in the U.S., having recovered over $6 billion for 60,000 clients in the last decade. The company focuses on debt recovery for a range of sectors, including healthcare (medical and dental), higher education (student loans), government agencies (state and federal), financial institutions (credit cards and auto loans), and B2B enterprises. Through its Rocket Receivables division, TSI also customizes debt recovery solutions for small and mid-sized businesses. With over $20 billion in receivables under management and projected 2024 revenue of $5 billion, TSI operates on a national scale. The company employs between 5,000 and 10,000 people globally, showcasing its extensive reach in the debt management space.
TSI integrates cutting-edge digital solutions into every stage of the debt recovery process. Its proprietary AI tools - MENSA AI and Ripple AI - enable omnichannel communication and real-time agent support. The DebtNext (dPlat) platform offers credit originators a robust digital system for vendor management, analytics, oversight, and debt sales. TSI handles the full debt lifecycle, from early reminders to late-stage collections and legal recovery through its Attorney Network. With its CollectX system, accounts are scored and prioritized daily to enhance liquidation rates. Payment options blend AI-driven tools like chatbots, SMS, and automated reminders with traditional agent-assisted methods. TSI also holds top-tier compliance certifications, including HITRUST, FISMA, NIST, SOC 2 Type II, and PCI DSS 3.2.
TSI is not accredited by the Better Business Bureau (BBB) and has a B rating. It ranked #14 out of 2,458 companies for the most debt collection complaints filed with the Consumer Financial Protection Bureau (CFPB) at the end of 2015. Over the years, TSI has faced more than 10,000 complaints with the CFPB and over 800 with the BBB. Regulatory challenges have included a $2.5 million settlement with the CFPB in 2017 for filing false or misleading affidavits, more than $3 million in Federal Trade Commission fines for harassing calls, and a $600,000 settlement in New York in 2020 over deceptive statements. Despite these issues, TSI's strong compliance framework continues to receive recognition from clients.
"TSI brought a level of compliance sophistication we hadn't seen from other ARM providers" – Chief Compliance Officer, National Auto Finance Company
TSI's scale and advanced technology infrastructure make it a go-to choice for large institutions looking for all-encompassing debt management solutions. In 2020 alone, the company collected $725 million - a testament to its capabilities.
"TSI treats denials, early-out, and bad debt as one connected continuum rather than three separate problems" – System VP of Revenue Cycle Operations, Multi-State Health System
However, TSI has faced criticism for frequent consumer complaints about harassment, unfair practices, and excessive robocalls. Individuals contacted by TSI are advised to request a debt validation letter within 30 days of the initial contact and to confirm whether the debt is still within the statute of limitations, which varies by state (typically 3–10 years). TSI often accepts reduced lump-sum settlements, and debtors may negotiate a "pay for delete" agreement to potentially remove the collection from their credit report.
Here’s a concise breakdown of various agencies to help you align your portfolio needs with their services and expertise.
The table below highlights each agency’s focus areas, services, reputation, and key pros and cons, making it easier to assess which one suits your claim size and industry.
| Agency | Specialization | Key Services | Reputation | Advantages | Disadvantages |
|---|---|---|---|---|---|
| IC System | Healthcare, SMB, Government, Utilities | Contingency and fixed-fee plans | 1.0/5 (180 reviews) | Decades of experience (since 1938); flexible pricing | High number of consumer complaints |
| Credit Control, LLC | General Receivables | Nationally licensed collections | Listed in directory | Established since 1989 | Generalist approach may lack niche expertise |
| The Kaplan Group | B2B (Commercial Only) | Legal support, high-value claims | 5.0/5 (4 reviews on GoodFirms) | No fee for uncollected debt; legal expertise | $10,000 minimum claim; excludes consumer debt |
| Massachusetts Commercial Collections Agency | B2B, Litigation | Legal collections, cash flow optimization | N/A | Over 60 years of combined experience; litigation-focused | Small team size (2–9 employees) |
| STA International | B2B, International | Global debt recovery, skip tracing | N/A | 60+ years of experience; international reach | Exclusively handles commercial debt |
| Coast Professional, Inc. | Government, Higher Education | Specialized recovery for government and education | Listed in directory | Expertise in compliance for specific sectors | Limited to a narrower industry focus |
| Transworld Systems, Inc. | Healthcare, Student Loans, Government Receivables | 1st & 3rd party collections, revenue cycle management, loan servicing | 1.0/5 (158 reviews) | Large-scale provider with broad industry reach | Frequent complaints about reporting errors and persistent contact |
Most agencies operate on contingency fees (ranging from 25% to 45%), though some offer flat-fee models for high-volume accounts.
Tailored Recommendations:
Modern debt recovery often relies on clear, multi-channel communication methods like SMS, email, and social media. This can be a deciding factor when evaluating agencies’ strategies.
Consumer Ratings and Agency Focus:
Specialized B2B agencies, such as The Kaplan Group, tend to earn higher ratings, while larger, high-volume firms often face criticism for issues like inaccurate reporting and TCPA violations. Agencies like The Kaplan Group and Massachusetts Commercial Collections Agency are particularly strong for debt portfolio trading, thanks to their legal support - essential for managing high-value accounts where standard collection methods fall short.
When selecting an agency, keep in mind minimum claim requirements. For example, The Kaplan Group requires at least $10,000 for the first claim. Additionally, confirm expertise in skip tracing and account segmentation to ensure optimized recovery efforts.
This summary provides a quick reference to weigh each agency’s strengths and limitations against your specific recovery needs.
Choosing the right debt collection agency means finding one that aligns with your specific needs and has a track record of success. By 2026, the U.S. debt collection industry is projected to be worth $13.6 billion, with agencies specializing in everything from consumer debts like medical and retail to commercial claims exceeding $10,000. The key is to match an agency's expertise to the unique demands of your portfolio.
To simplify this process, refer to the comparison table provided. It highlights each agency's specialization, fee structures, reputation, and key strengths, making it easier to pinpoint the best match. For example, if you’re handling healthcare-related debts, look for agencies with HIPAA compliance and medical debt experience. On the other hand, for high-value commercial accounts with legal complexities, agencies offering in-house legal teams and asset verification can deliver better results.
"Match specialization to your ledger." – Collection Agency USA
Keep in mind that contingency fees usually fall between 25% and 45% of recovered amounts. Additionally, confirm that the agency you choose is properly licensed in the required 32 states and holds relevant certifications, such as CLLA or IACC for commercial collections. For consumer debts, ensure they comply with Regulation F guidelines. These steps are crucial for making a sound, compliant choice.
Before you finalize your decision, request performance metrics for portfolios similar to yours - such as recovery rates and average collection timelines. This extra step ensures you’re partnering with an agency that understands the challenges and compliance standards of your industry.
Before sending an account to a collection agency, make sure you gather and provide all the necessary documents to validate the debt. These typically include the original contract or agreement, account statements detailing the outstanding balance, evidence of delinquency, and any relevant correspondence. Since requirements can vary by agency, it's a good idea to double-check with them to ensure they have everything they need to handle the collection properly and within legal boundaries.
To ensure a collection agency is properly licensed and follows regulations, start by checking your state’s licensing authority. Most states offer online access to lists of approved agencies. Some also rely on the Nationwide Multistate Licensing System (NMLS) for license tracking. Beyond that, it’s worth looking into consumer protection resources like the Better Business Bureau to check for complaints or disciplinary actions. This can give you a clearer picture of the agency’s reputation.
When deciding whether to escalate from collections to legal action or sell the debt, several factors come into play. These include the size of the debt, how the debtor has responded so far, and what collection efforts have already been made.
Legal action is typically reserved for larger debts where there's a solid chance of recovering the money. On the other hand, selling the debt might be a better option for accounts that are older or seem uncollectible. This approach allows you to recoup some value without investing additional time or resources.
Before making a decision, it's important to weigh the costs, risks, and potential for recovery associated with each option.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
.svg){kind=icon}
.svg){kind=icon}
.svg){kind=icon}
