To ask the question ‘What has
a better outcome- a collection agency or a collection law firm?’ is the same as
asking ‘What is better, a diner or a 5 star restaurant?’. Both offer
food, however one obviously excels over the other. In this case, it just
so happens to be the collection law firm that excels.
One of the main reasons why a
collection law firm out
performs a collections agency is based on the fact that collection law firms
have much more legal rights. An agency cannot perform nearly as many
duties as a law firm.
A collection agency is merely an agency.
They can make phone calls and write letters. That is basically
the extent of their legal boundaries. If the debtor doesn’t pay, there
aren’t any real consequences coming from the agency. This is where the
law firm and agency differ. A collection law firm is able to all of the
same things as an agency; however they can also file suits. Debtors are
typically much speedier in payments if they know a credit hurting suit can be
filed against them.
Also, in the long run, a
collection agency can potentially cost you more money. When a
collection agency is not able to collect, which is often, they have to then
turn the case over to an attorney who can file a suit. This leads
to more money being paid out by the one who is seeking a collection. The
most efficient thing to do is to just cut out the middle man (the agency) and
hire the attorney in the beginning.
It’s also important to
consider the types of people that will be taking your case. With a
collection firm you are guaranteed to have educated, motivated individuals who
will be able to know the full realm of your claim. A collections agency cannot
grant the same expert treatment that you will receive from a collections
attorney.
With that being said, it really does
depend on the size of the debt that is being collected. While law firms
stand strong on their legal ground, collection agencies have call centers, and
technological features, that simply cannot be matched by a law firm.
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