Collections

For over a two decades, Collect911 has been the trusted partner for thousands of businesses, government institutions, colleges, hospitals, and dental and medical practitioners. Fully licensed in California and all 50 states—including Puerto Rico—we have the capability to pursue collections nationwide, even if your debtor has moved out of state.

We offer dedicated teams specializing in both B2B (Commercial Debt) and B2C (Consumer Debt) recovery, ensuring that your specific needs are met with expertise and precision.

What Sets Us Apart from Other Collection Agencies:

• Customer-Centric Approach: We make the process incredibly easy by adapting to your needs—not the other way around.

• Flexible Service Options: Choose between our low-cost Flat-Fee Connect Service—where accounts never expire and debtors pay you directly—or the traditional Contingency Service.

• Exceptional Reputation Management: We understand the importance of your business reputation. Collect911 boasts one of the highest Google Ratings among collection agencies, with over 2,000 reviews averaging 4.8 out of 5 stars—and impressively, 90% of these reviews are from individuals we’ve collected from.

• No Hidden Fees or Commitments: Enjoy our services without any minimum balance requirements, minimum number of accounts, setup fees, or binding contracts. Our customer agreement is open-ended and non-committal.

• Complimentary Credit Bureau Reporting: Benefit from free credit bureau reporting, enhancing the effectiveness of our collection efforts.

• High Recovery Rates with Full Compliance: We achieve excellent recovery rates while strictly adhering to FDCPA, HIPAA, TCPA, and GLBA regulations.

• Personalized Support: Beyond our central customer service team, you’ll have a dedicated Sales Representative assigned to you for direct, personalized assistance.

• State-of-the-Art Security: We take your security seriously. All accounts are managed through our secure online client portal with two-factor authentication enabled, ensuring your data is protected at all times.

Our Services:

We offer a range of fixed fee and contingency agency services.

Contact us for a free consultation:

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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.

 

Commercial collection is the process by which businesses recover debts owed to them by other businesses. This complex undertaking requires a comprehensive understanding of applicable laws and regulations. That’s why highly experienced commercial collection agencies specialize in recovering unpaid B2B debts, leveraging their expertise to navigate the legal landscape effectively.

The commercial collection process can be complex and requires a thorough understanding of applicable laws and regulations. This involves highly experienced commercial collection agencies that specialize in recovering unpaid B2B debts.

In this specialized field, commercial debt collectors and lawyers collaborate to recover outstanding invoices, employing sophisticated legal strategies beyond the reach of most individuals. Their primary goal is to resolve debts amicably, resorting to legal action only as a last resort—and only with your explicit permission.

By combining legal acumen with strategic negotiation, they work diligently to recover what is rightfully yours while maintaining professional relationships whenever possible.

We have over 15 years of Commercial Collection experience.

Delivering excellent recovery rates: Contact us

Here’s an overview of how the collection 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.
   
   At this stage: The debt gets assigned to a Commercial Collection agency
   

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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. No recovery – No Fee.
   
   
5. Making Contacts: 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, emails and texts. Persistent contacts ensures that the defaulter is forced to take your unpaid invoice very seriously.
   
   
6. Negotiation: The agency will negotiate with the debtor to agree on a payment plan or a reduced settlement amount if necessary.
   
   
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 business rating and ability to obtain future credit.
   
   
9. Ethical Considerations and Regulations: Commercial collection is regulated by various federal and state laws. 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, amount 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.

Maximizing Cash Flow for Senior Living Centers with Collect911

Trusted Debt Recovery Solutions Tailored for Senior Living Communities

Let us tailor a debt collection solution that meets the unique needs of your senior living community. Reach out to Collect911 to learn more about how we can support you in achieving financial stability without compromising the compassionate care your residents deserve.

Senior living communities constantly strive to provide exceptional care while managing the financial challenges unique to their industry. One significant hurdle is collecting unpaid invoices from residents and their co-signers without compromising the community’s reputation or the delicate relationships with residents and their families.

Collect911 understands these challenges and offers specialized debt collection services designed specifically for senior living centers. With over a decade of experience serving healthcare providers across all 50 states and Puerto Rico, we are your trusted partner in enhancing cash flow while maintaining the highest standards of compassion and professionalism.

We are experts in Senior Living Debt Collection Contact Us – Serving all 50 states Serving some of the biggest names in your industry.

Why Choose Collect911 for Your Senior Living Community?

Compassionate and Respectful Approach

We recognize the sensitive nature of senior care. Our team is trained to handle each case with empathy, treating residents and their families with the dignity and respect they deserve. Our goal is to recover outstanding debts amicably, preserving the vital relationships you’ve built within your community.

Specialized Expertise in Senior Living Debt Collection

Our dedicated teams specialize in both B2B (Commercial Debt) and B2C (Consumer Debt) recovery, with a deep understanding of the senior living industry’s nuances. We navigate the complexities of private pay challenges, insurance reimbursements, and the legal intricacies that arise when residents transition or pass away.

Compliance with All Regulations

Collect911 is fully compliant with all federal and state laws, including the Fair Debt Collection Practices Act (FDCPA), Health Insurance Portability and Accountability Act (HIPAA), Telephone Consumer Protection Act (TCPA), and Gramm-Leach-Bliley Act (GLBA). You can trust that all collection activities are conducted ethically and legally, protecting your community from potential liabilities.

Flexible and Customized Solutions

• Early Intervention Programs: We implement strategies to address payment issues before they escalate, offering flexible payment plans tailored to individual financial situations.
• Advanced Technology: Utilize our secure online client portal with two-factor authentication for real-time account management, reporting, and communication.
• Multilingual Support: Our team includes multilingual professionals to effectively communicate with a diverse resident population.

Protecting Your Reputation

With over 2,000 Google reviews averaging 4.8 out of 5 stars, 90% of which are from individuals we’ve assisted, our reputation speaks to our commitment to professionalism and respect. We act as an extension of your team, ensuring that your community’s reputation remains impeccable.

Maximizing Recovery Rates

Time is of the essence in debt recovery. We recommend transferring accounts to collections after 90-120 days of delinquency. Acting promptly increases the likelihood of successful recovery, especially as financial circumstances and health can deteriorate over time.

Comprehensive Services

• Insurance and Medicare/Medicaid Navigation: We assist in expediting reimbursements, reducing delays caused by complex processing systems.
• Estate Recovery Expertise: Our team is adept at handling sensitive situations when a resident passes away, working compassionately with estates and legal representatives.
• Family Engagement: We involve co-signers and family members appropriately, recognizing their crucial role in financial decisions.

Dedicated Support and Transparent Communication

• Personalized Assistance: Beyond our central customer service team, you’ll have a dedicated representative for direct, personalized support.
• Regular Updates: Receive consistent communication and detailed reports on collection activities, keeping you informed every step of the way.
• No Hidden Fees or Commitments: Enjoy our services without minimum balance requirements, setup fees, or binding contracts.

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The Collect911 Advantage During Challenging Times

The COVID-19 pandemic intensified financial pressures on senior living communities. With residents and co-signers facing economic hardships, collecting payments became even more challenging. Collect911 adapted swiftly, ensuring continuous support for our clients through:

• Crisis-Responsive Strategies: Implementing compassionate collection approaches sensitive to the unprecedented circumstances.
• Enhanced Security Measures: Strengthening our digital platforms to facilitate remote operations without compromising data security.
• Flexible Payment Options: Offering additional assistance to residents and families affected by the pandemic.

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Partner with Collect911 Today

Choosing Collect911 means partnering with a debt collection agency that values the well-being of your residents as much as you do. We are committed to helping you:

• • Improve Cash Flow: Recover outstanding debts efficiently to support your community’s financial health.
  • Maintain Reputational Excellence: Protect and enhance your standing within the community through ethical and respectful interactions.
  • Focus on Care: Allow your staff to concentrate on providing exceptional care, while we handle the complexities of debt recovery.

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.

When a company provides a product or service, it has a right to expect to be paid on a timely basis. However, anyone who’s been in business a month or more has learned that prompt payment is not always the case. Often, accounts get seriously past due, or when payments are made, there may be insufficient funds in the customer’s account to cover a check. Accounts not paid within terms can have a dramatically negative impact on the “cash flow” of a business.

1. Have a Defined Credit Collection Policy

One of the major causes of overdue receivables is that the business has not explained to its customers and staff when accounts are to be paid. If customers are not educated that their accounts are to be paid on time, then chances are they’ll pay late or sometimes, not at all. Make sure that your company’s terms of payment are clearly stated in writing to each customer.

2. Invoice Promptly and Send Statements Regularly

If you don’t have a systematic invoicing and billing system, get one. Many times the customer hasn’t paid simply because they haven’t been billed or reminded to pay in a timely manner. This situation usually occurs in smaller or newer businesses, where they may be short-handed on staff needed for timely invoicing and billing.

(CONNECT STEP 1, our 1st Party REMINDER service, done in your name, can help with this!)

3. “Address Service Requested”

One of the most difficult collection problems is tracking down a customer who has “skipped”. All businesses should be aware of a special service that the US Postal Service offers. Any statement or correspondence sent out from a business or professional office should have the words “Address Service Requested” printed or stamped on the envelope, just below your return address in the top left corner. If a statement or invoice is sent to a customer who has moved without informing you of their new address, and the words “Address Service Requested” appear on the envelope, the Post Office will research this information and return the envelope to you on a yellow sticker that gives the new address or other updated information. If the customer has placed a “forwarding order,” we suggest that you check with your local Post Office to see what additional options you may have for follow-up. This will help you keep your address files up to date.

4. Contact Overdue Accounts More Frequently

There is no law that says that you may only contact a customer once a month. The old adage “The squeaky wheel gets the grease” has a great deal of merit when it comes to collecting past due accounts. It’s an excellent idea to contact late payers every 10-14 days. Doing so will enable you to diplomatically remind the customer of your terms of payment.

5. Use Your Aging Summary Report, Not your Feelings

Many well-meaning businesses owners (or staff members) have let an account age beyond the point of ever being collected because of the “feeling” that the customer would pay eventually. While there are isolated cases of unusual situations, the truth is that if you aren’t being paid, someone else is. Stick to your systematic follow-up plan. You’ll soon identify who really intends to pay and who doesn’t. You can then take appropriate actions.

6. Make Sure Your Staff is Well-Trained

Even “experienced” staff members can sometimes become jaded when dealing with past due customers. This usually happens when debtors have broken promises for payment that have been made previously. Make sure the staff is firm, yet courteous when dealing with them. Your entire staff could benefit from customer service training because, in effect, they must “sell” your customers on the idea that you expect to be paid. Make sure that your collection staff is trained to both, bring the account to current status, while also maintaining “good will” with the client base.

7. Admit any Mistakes on Your Part and correct them ASAP

Sometimes customers don’t pay because they feel that you’ve made a mistake. If you have, quickly admit it and correct it. Your customer realizes that mistakes can happen in business. Unfortunately, many customers believe that the owner or president “doesn’t need the money.” Denying an obvious error only fans the fire of resentment that your customer may already feel.

8. Follow all Federal and State Collection Laws

In many states, businesses are governed by the same collection laws that regulate collection agencies. For example, calling customers at an odd hour or disclosing to a third party that the debtor owes you money, are just a couple of the numerous collection practices that can cause serious repercussions. If you’re not sure, call your state’s department of finance which governs and monitors collection agencies.

9. Use a Third Party Sooner

If you’ve systematically pursued your past due accounts for 60 to 90 days from the due date, (and they still haven’t paid) you’re being delivered a message by your client. More than likely, you’ve requested payment four to six times in the form of phone calls, letters and statements. Statistics show that after 90 days, in-house collection effort loses up to 80% of its effectiveness. That means that the time and financial resources budgeted for collection efforts should be focused within the 1st

60-90 days, when the bulk of your accounts can and should be collected. From that point on, a 3rd party can motivate your client to pay you in ways that you cannot, simply because the demand for payment is coming from someone other than you. Before paying a contingency collection agency, an attorney or using small claims court, why not explore using a fixed flat-fee collection services.

We offer CONNECT STEP 1 (our 1st Party Reminder Service) & CONNECT STEP 2 (our 3rd Party Service) for a Fixed Flat-fee of about $15 per account, regardless of the amount owed, or where the debtor is located in the U.S.!

COLLECT STEP 3 is our contingency service.

10. Remember that Nobody Collects Every Account

Even by setting up and adhering to a specific collection plan, there will still be a few accounts that will never be collected. By identifying these accounts early, you will save yourself and your company a great deal of time and money. Even though a few may slip by, you’ll find that overall the number of slow pay and nonpaying accounts will greatly diminish, and that’s a victory in itself!

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About the author:
Todd , Regional Business Development Partner is available to answer your CASH FLOW questions. He has MORE tips on how to increase cash flow by making the best payment arrangements with your customers, along with providing your team with a special “script” to follow to get you paid faster! He will also give suggestions on what to look for when choosing a collection agency and what choices you have for recovering your delinquent accounts.

Todd is available for workshops for Rotary Clubs, Business groups, Chambers of Commerce and Trade Associations. There is NO FEE. He will also be happy to offer an accounts receivable analysis for business owners & medical practices ~ FREE of CHARGE!