Collections

Improving dental collection requires strategic planning, efficient communication, and professional understanding. Implementing the following measures can serve as a fundamental blueprint for refining collections in dental practices:

Kinum has helped thousands of businesses, government institutions, colleges, hospitals, dental and medical practitioners for over a decade. We are fully licensed in Texas. Being a national collection agency, we can pursue debts in all 50 states and Puerto Rico. If your debtor moved outside Texas, we can still pursue collections. We have dedicated teams to recover B2B (Commercial debt) and B2C (Consumer debt).

What distinguishes us from other collection agencies:

• We are extremely easy to use and work as per your needs (and not the other way around).
• Select between the low-cost Flat-Fee connect service (accounts never expire and debtor pays directly to you), or the traditional Contingency service.
• We understand that your business reputation is essential. As for how the debtors/patients are treated, Kinum has one of the highest Google Ratings of all collection agencies. Over 1300 Google reviews averaging 4.8 out of 5, and 90% of reviews are from people we’ve collected money.
• There is no minimum balance requirement, no minimum number of accounts, no set-up fees, and an open-ended, non-committal customer agreement.
• Free Credit Bureau reporting.
• High recovery rates. FDCPA, HIPAA, TCPA and GLBA compliant.
• Easy to use and apart from a central customer service team, you will be assigned a dedicated Sales Rep who can be reached directly.
• We take security very seriously. All accounts are managed through our secure online client portal with 2-factor authentication enabled.

Kinum Services:

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Texas Collection Laws:

Here’s an overview of some of the most important debt collection laws in Texas:

1. Texas Debt Collection Act (TDCA):
   • Found in Chapter 392 of the Texas Finance Code, the TDCA governs the conduct of debt collectors in the state of Texas.
   • This law prohibits a range of deceptive, fraudulent, and abusive tactics. For example, it is illegal for a collector to misrepresent the character, amount, or legal status of a debt or to threaten to take actions that are not legal.
2. Statute of Limitations:
   • Texas has set statutes of limitations for various types of debts, during which time creditors or collectors can initiate legal action to collect a debt:
     • Oral contracts: 4 years
     • Written contracts: 4 years
     • Promissory notes: 4 years
     • Open-ended accounts (e.g., credit cards): 4 years
3. Exemptions from Garnishment:
   • In Texas, wages cannot be garnished for consumer debt; however, they can be garnished for child support, alimony, taxes, and student loans.
   • Certain types of income, such as social security, retirement pensions, and workers’ compensation, are typically exempt from garnishment.
4. Homestead Exemption:
   • Texas has a generous homestead exemption, which protects a debtor’s primary residence from being seized by unsecured creditors, irrespective of the property’s value.
5. Bonded Debt Collection Agencies:
   • Texas requires third-party debt collectors to post a bond with the state. If a debt collector violates the TDCA or other laws, consumers may have the right to make a claim against this bond.
6. Debt Validation:
   • As with the federal Fair Debt Collection Practices Act (FDCPA), Texas law gives consumers the right to request validation of a debt. Debt collectors must provide adequate verification of the debt upon request.
7. Limits on Communication:
   • Similar to the federal FDCPA, the Texas Debt Collection Act has provisions regarding when and how debt collectors can communicate with consumers. For instance, a debt collector is prohibited from calling a debtor repeatedly with the intent to annoy or harass.
8. Prohibited Practices:
   • The TDCA outlines various practices that are deemed prohibited when collecting a debt. This includes using threats of violence, accusing the consumer of a crime, or using defamatory language.

Debtors and creditors in Texas should be familiar with these provisions to ensure compliance and the protection of their rights.

Kinum has served thousands of businesses, government institutions, colleges, hospitals, dental and medical practitioners for over a decade. We are fully licensed in California, as well as in all 50 states and Puerto Rico. If your debtor moved outside California, we can still pursue collections nationwide. We have dedicated teams to recover B2B (Commercial debt) and B2C (Consumer debt).

What distinguishes us from other collection agencies:

• We are extremely easy to use and work as per your needs (and not the other way around).
• Select between the low-cost Flat-Fee connect service (accounts never expire and debtor pays directly to you), or the traditional Contingency service.
• We understand that your business reputation is essential. As for how the debtors/patients are treated, Kinum has one of the highest Google Ratings of all collection agencies. Over 1300 Google reviews averaging 4.8 out of 5, and 90% of reviews are from people we’ve collected money.
• There is no minimum balance requirement, no minimum number of accounts, no set-up fees, and an open-ended, non-committal customer agreement.
• Free Credit Bureau reporting.
• High recovery rates. FDCPA, HIPAA, TCPA and GLBA compliant.
• Easy to use and apart from a central customer service team, you will be assigned a dedicated Sales Rep who can be reached directly.
• We take security very seriously. All accounts are managed through our secure online client portal with 2-factor authentication enabled.

Kinum Services:

Contact us for a free consultation:

Tell us a little bit about you

Your Name (required) Your Email (required) Your Phone (required) Additional information or Message (optional)

 

California Collection Laws:

Here’s an overview of some of the most important debt collection laws in California:

1. The Rosenthal Fair Debt Collection Practices Act (RFDCPA):

   • This California-specific law is an extension of the federal Fair Debt Collection Practices Act (FDCPA). It regulates the behavior and practices of debt collectors in the state.
   • The RFDCPA broadens the definition of “debt collector” to include creditors collecting on their own debts and attorneys who collect debts on a regular basis.
   • Prohibitions under this act include: using obscene or abusive language, making false threats of violence or legal action, disclosing the debtor’s debt to third parties without permission, and calling at unusual or inconvenient times.

2. California Civil Code Section 1788-1788.33:

   • This section outlines specific protections for California consumers against abusive debt collection practices. These regulations serve as the backbone of the RFDCPA.
   • It mandates that debt collectors provide specific notifications to consumers and includes provisions against misrepresentation and unfair practices.

3. Time-Barred Debts:

   • California has a statute of limitations on the time period during which a creditor or collector can sue to collect a debt. The exact length of time varies based on the type of debt. For instance:
     • Oral contracts: 2 years
     • Written contracts: 4 years
     • Promissory notes: 4 years
     • Open-ended accounts (e.g., credit cards): 4 years

4. Communications:

   • Debt collectors are generally restricted from contacting consumers at their place of employment if they are informed (either orally or in writing) that the consumer is not allowed to receive such communications there.
   • Collectors cannot contact consumers before 8 a.m. or after 9 p.m. local time, unless the consumer gives permission.

5. Debt Validation:

   • Under California law, if a consumer disputes a debt in writing within 30 days of the first contact from the collector, the collector must cease collection efforts until they provide verification of the debt.

6. Wage Garnishment:

   • California has specific laws that limit the amount of wages that can be garnished to repay a debt. The state provides greater protection than federal law, allowing only the lesser of 25% of a worker’s disposable earnings or the amount by which a worker’s disposable earnings for the week exceed 40 times the state minimum hourly wage.

7. Exemptions:

   • Certain types of income, like social security, disability, and retirement, are exempt from garnishment in California.

It’s essential for both consumers and debt collectors to be familiar with these laws to ensure they are protected and act within legal boundaries.

Commercial collection in the USA refers to the process through which businesses collect debts owed to them by other businesses. This often involves commercial collections agencies that specialize in recovering unpaid debts.

We have over 15 years of Commercial Collection experience with high recovery rates: Contact us

Here’s an overview of how the process typically works:

1. Contractual Obligation: Initially, two parties enter into a contract where one party agrees to pay the other for goods or services. The contract typically defines payment terms, outlining when and how payment should be made.
2. Invoicing: The creditor sends an invoice to the debtor, detailing the amount due, the date it is due, and the payment terms.
3. Payment Reminder: If payment is not received by the due date, the creditor may send a reminder or make a phone call to the debtor. This is often the first step in the collections process.
4. Collection Agency Involvement: If the debtor still fails to pay, the creditor might hire a commercial collection agency. These agencies specialize in debt recovery and will typically work on a contingency basis, meaning they only get paid if they successfully collect the debt.
5. Initial Contact: The collection agency will typically send a written notice to the debtor, notifying them of the debt and requesting payment. They may also attempt to contact the debtor by phone.
6. Negotiation: The agency might negotiate with the debtor to agree on a payment plan or a reduced settlement amount.
7. Legal Action: If the debtor continues to refuse payment, the collection agency or the original creditor may choose to take legal action. This can involve filing a lawsuit against the debtor, seeking a judgment that legally obligates them to pay.
8. Credit Reporting: Some commercial collection agencies may report the unpaid debt to business credit bureaus. This can negatively affect the debtor’s credit rating and ability to obtain future credit.
9. Ethical Considerations and Regulations: Commercial collection in the USA is regulated by various federal and state laws, such as the Fair Debt Collection Practices Act (FDCPA), which applies mainly to consumer debt but sets a standard for ethical practices. Agencies must adhere to these laws, avoiding harassment, misrepresentation, and other unethical practices.
10. Collection Fees: Depending on the contract and the state laws, collection costs and interest might be added to the original debt. This can sometimes lead to the debtor owing significantly more than the original amount.
11. Closing the Case: If the debt is collected, the agency will typically take its percentage (often ranging from 15% to 50%, depending on the age and complexity of the debt) and remit the rest to the original creditor. If the debt cannot be collected, the case may be closed, and the creditor may choose to write off the debt as a loss.

The commercial collection process can be complex and requires a thorough understanding of applicable laws and regulations. Many businesses prefer to hire professionals to manage this process to ensure compliance and improve the likelihood of recovering the owed funds.

Senior Living communities are always under tremendous pressure to improve cash flow. This includes collecting unpaid invoices from patients and their co-signers.

Due to the industry’s very nature, the staff of senior living centers can apply only so much pressure, beyond which they risk the center’s reputation. Collection agencies specializing in senior living debt collection know the delicate nature of business. They use a friendly yet well-calculated tactical approach to maximize recovery while following all federal and state-mandated guidelines.

We are experts in Senior Living Debt Collection Contact Us – Serving all 50 states

1. Private Pay Challenges: Many senior living residents are private pay, meaning they pay for their care out of pocket. This can sometimes result in delays in payments or non-payment due to various factors, such as a decline in the resident’s financial resources.

2. Insurance and Medicare/Medicaid Reimbursements: Processing insurance claims or getting reimbursements from Medicare or Medicaid can be slow, and payments can often be delayed. Navigating the complexities of these systems can be challenging and time-consuming.

3. Resident Transition or Death: When a resident leaves or passes away, outstanding balances may be challenging to collect. There can be legal complications, particularly if the resident’s estate is insolvent.

The Covid-19 pandemic snow-balled the problem since many patients/signers experienced a loss of income and could not make payments on time. Since all senior living communities were forced to follow one of the highest standards of Covid-19 compliance a cost they had to bear.

Forwarding accounts to a collection agency after 90-120 days of delinquency is a great way to collect unpaid bills. Financial Circumstances and the health of your patient can deteriorate over time. Therefore acting ASAP is vital in the healthcare industry.

Even though the collection agency charges a percentage of what they collect, the entire amount will be written off without their intervention. As the account ages, the probability of successful recovery decreases. Therefore, transferring accounts to a collection agency before 180 days is highly advisable.

No matter what type of business an organization is and what it does, the most important part of the business is getting paid for the work done.

For small businesses, this is even more important. Small businesses usually operate on razor-thin margins and depend on their cash flow in order not just to grow but to survive. A bill that has not been paid within 2-3 months despite multiple reminders will likely go unpaid without professional help. There is a 90% chance that you will see a complete loss on these accounts.

Your employees cannot beat the recovery rate achieved by professional debt collectors. A collection agency will systematically collect your outstanding AR using “Written Demands”, “Verbal Demands”, or “Filing a Lawsuit”, or a combination of all these services. They are aware of the latest laws and have access to advanced tools that assist in the debt recovery.

Need a Small Business Collection Agency: Contact us Serving nationwide – Easy to use – Low rates

Depending on how old your unpaid bills are, here is a simple chart that suggests which collection service should be used.

Service Options & Our Fees

Depending on how old your accounts are, we recommend one of the following two options.

Option 1: (Contingency only collections)
Most popular – A professional debt collector calls your debtor multiple times

There is no upfront fee. We do not make anything until we collect. You keep 60% of the amount collected, we keep 40%. This service is recommended for accounts between 120 days and 3 years past due, regardless of the balance.

Option 2: (Flat-fee collections) Written Demands

This service requires you to buy a batch of accounts in advance. We send five attorney-approved written demands to your debtors under our name every 10 days. This service is most effective when your bills are less than 1 year past due.

Unpaid Bills and Small Business

Unpaid bills are a major problem in America that affects both consumers and businesses. About a third of all Americans have a debt that has gone past due it is currently in collections. This represents over 75 million people. These unpaid bills range from as little as $25 to as much as $100,000. The average amount owed is around $5,000.

An average small business has over $80,000 in unpaid invoices, and 81% of those are at the last 30 days past due. When this happens, small business owners face several challenges. These include not being able to hire more employees, buy new equipment, or do the marketing they need to grow. It may prevent them from maintaining adequate inventory. May result in pay cuts, and layoffs, leading to business failure.

Avoiding Unpaid Bills

Before it gets to a point where crucial functions, salaries, or jobs need to be cut, there are a few things that small businesses can do. While these methods aren’t foolproof, they can help minimize your risk.

• Have a policy in writing

Have a defined, written policy on accounts receivables and stick to it. You should know exactly when to take intensive steps before the situation deteriorates.

• Have Tighter Credit Policies

Many businesses have no choice but to offer goods or services on credit. Evaluate your clients rather than offering the same credit policy to everyone. Know when to cut your losses.

• Hire a Debt Collection Agency

Once an account goes 90 – 120 days past due, it may be time to do hard talking or hire a professional collector. You will never have enough time, systems, or expertise that a professional debt collection agency has.

Hiring a Small Business Debt Collection Agency

When hiring a debt collection agency for your small business, there are a few things you want to look for.

• Reviews and Reputation

The first thing you want to find out is if the debt collection company is reputable and ethical. Remember, the collection agency you use will be a reflection of your business. Using one that is overly aggressive or unprofessional will ruin your business.

• Licensing, Insurance, and Compliance

You also want to ensure that your collection agency has the appropriate licenses and insurance and is compliant with all local and federal debt collection practices.

• Collection Fees

Never go for the cheapest collection agency. You get what you pay for. But typically, an agency charging a flat fee or around 40% is considered fair enough.