Debt Recovery Service Pricing Guide

What a good one includes

• A clear breakdown of contingency fee percentages categorized by the age of the debt, as older accounts typically require more intensive recovery efforts.
• The minimum debt balance your agency accepts to ensure smaller accounts remain profitable for your team to pursue.
• A transparent list of up-front administrative, skip-tracing, or letter-sending fees that are billed regardless of the recovery outcome.
• Specific terms detailing how court costs, filing fees, and legal representation costs are handled if the debt escalates to litigation.
• Distinct service tiers, such as first-party amicable reminders versus third-party intensive collections, with corresponding rate differences.
• Clearly defined payment remittance terms explaining how and when recovered funds are paid out to the client after a successful collection.

Common mistakes to avoid

• Grouping all debt ages under a single flat rate, which ignores the vastly different effort levels required to collect on fresh versus years-old accounts.
• Failing to explicitly define who pays for legal court costs upfront, leading to tense disputes with clients if a case goes to court.
• Using overly dense legal jargon to explain simple fee structures, which alienates business owners who just want a straightforward cost explanation.
• Omitting a clear policy on what happens to partial payments, leaving clients confused about how your commission is calculated on installment agreements.

Frequently asked questions