Since 1986, ARS has delivered professional, highly effective results for clients on a worldwide basis. ARS is recognized as a leader in Judgment Collections, Commercial Collections, Consumer Recovery, and is a specialist in debt collection of Child Support and Spousal Maintenance. Our partnership approach, rapid collection and ability to preserve relationships form the cornerstone of our commitment to excellence.
With three decades of experience both domestically and internationally, ARS serves a broad spectrum of industries.
ARS clients benefit from an array of collection solutions designed to increase cash flow, reduce expenses, improve operational efficiency and maintain positive customer relations. We are proud of our ability to deliver professional, effective and timely results worldwide.
ARS strives to remain a leader in the industry. ARS is comprised of a strong, cohesive and committed team. Our consistent track record for successful outcomes stems from a forward-thinking corporate mix where personal and professional aspirations thrive and progressive ideas flourish. Our team is kept current on all laws and statutes, FDCPA and FCRA compliance through ongoing education, and by attending seminars and meetings throughout our affiliations with the Commercial Law League of America (CLLA), the American Collectors Association (ACA), and DBA International (DBA).
Our company’s commitment is to constantly reinvest in our employees, new technology, recovery resources, professional staff, legal solutions, and innovative systems and procedures.
ARS’s legal solution is centered around our network of experienced collection attorneys. Our Forwarding Department coordinates litigation services for all 50 states and beyond. By having successfully litigated tens of thousands of cases for creditors, our legal network has the litigation experience to help our clients achieve maximum results and minimize any potential exposures.
ARS utilizes a wide range of technological tools and resources to help each client achieve the best possible results. Our staff has access to the latest software programs with enhanced security and a state-of-the-art secured network with a full disaster recovery program.
Our focus is on the specific needs of each client’s portfolio, whether it is for one claim or for thousands and is built on systems and personnel already developed, tested, and proven on a day to day basis. ARS will never close an account until every debt collection option has been exhausted.
Our services are based on a contingency fee arrangement; therefore if our attempts at debt collection are not successful, you will not be charged!
No Debt Collection…No Fee
COMMERCIAL DEBT COLLECTION DIVISION
RATES: Contingent Upon Debt Collection
Before Litigation:
29% of collections
After Litigation:
When suit is recommended, client’s authorization will be required. Should suit be authorized, creditor will be responsible for advanced court costs. Court Costs vary from state to state and these rates will be quoted in our lawsuit requirement letter prior to authorization.
39% of collections
Large claims (over $500,000) – rates negotiable on an individual basis
CONSUMER (RETAIL) DEBT COLLECTION DIVISION
RATES: Contingent Upon Collection
Before Litigation:
34% of collections
After Litigation:
When suit is recommended, client’s authorization will be required. Should suit be authorized, creditor will be responsible for advanced court costs. Court Costs vary from state to state and these rates will be quoted in our lawsuit requirement letter prior to authorization.
44% of collections
JUDGMENT COLLECTION DIVISION
RATES: Contingent Upon Collection
33% of collections, net, after execution costs. Such costs include, and may not be limited to, Sheriff Fees, Marshal Fees, Attorney Fees, and Court Costs. You should note that if the Judgment Debtor moves to another state, and you desire to domesticate your Judgment in the “new” state, you must advance the local Court Costs to domesticate your Judgment.
CHILD SUPPORT / SPOUSAL MAINTENANCE COLLECTION DIVISION
RATES: Contingent Upon Collection
33% of collections, net, after execution costs. Such costs include, and may not be limited to, Sheriff Fees, Marshal Fees, Attorney Fees, and Court Costs.
INTERNATIONAL CLAIMS
39% of collections
Foreign attorneys may require retainers or handling fees as is customary in their country and such rates will be quoted in our lawsuit requirement letter prior to authorization.
OTHER TERMS AND CONDITIONS
A. Return of Merchandise- When the client elects to accept a return of merchandise, one-half of the applicable rate will be charged on the value of the returned merchandise.
B. We must be advised of direct payment immediately by fax or telephone. It is important to let us know as soon as possible that a payment has been made directly to you to avoid the potential of violating Federal and/or State collection Laws. (i.e. FDCPA)
C. After an account has been placed for collection, any payments made direct to our clients are subject to full fees as detailed above.
D. Court Costs must be advanced if the Judgment Debtor moves to another state and you desire to domesticate your Judgment in the “new” state.
Bad debts are a growing area of concern for businesses the world over, which is the reason why most of them take the help of debt collection agencies. Debt collection agencies not only work more efficiently but more professionally to get back your debts, while you can focus on your business. Read on to know more.
Business operations are getting complicated with each passing day and hence, there is need for greater professionalism and specialization in dealing efficiently with every aspect of a business. In such a scenario, recurring problems like bad debts can pose a big problem for a business. It is a problem that all businesses have to deal with. However, if the magnitude of the accumulated bad debts increases, it can mean huge losses to the business. Trying to deal with it requires not just time and effort but also specialization and experience. Neither do the businesses have that much time nor the specialization to deal with bad debts. Moreover, it is not uncommon to have certain debtors who are not reachable. It doesn’t make any sense to try to locate these debtors which will only result in wasting your time, hence, the need for appointing a professional collections agency who can take on the responsibility for the hassling task from you, assuring the best possible results, so that you can shift your attention from the delayed payments and focus on the core job, that is your business.
What makes the debt collection agencies so efficient in collecting your debts? Since collection of debts is the main job of the debt collection agency they will spend far greater time than you can on the delayed accounts. They have got the specialization and the experience which makes all the difference between their approaches in dealing with the problem. They work step by step in a particular fashion, making their best efforts to get the payments as smoothly as possible while being highly professional in their approach in the entire process. This kind of professionalism is extremely important in debt collection, because while you want for your payments, you often do not want to spoil your business relations with the debtors which are necessary in the domain of business. It is yet another important aspect of taking professional help rather than trying to get back your debts on your own.
A debt collection agency typically, first tries to contact the debtor through a series of notification letters called demand letters giving ample time to the debtor to respond and also offering the option to enter into negotiations. If the debtor fails to respond to the letters in the given time period, the debtor is then personally contacted. Direct contact with the debtor often results in a positive reaction as firstly it is not a very good experience to be contacted by a debt collection agency and the debtor understands that the matter is now serious. Secondly, the debtor can at times be given some options to make the payment by negotiations. If there is still no response, then legal action can be taken against the debtor as a final resort, with your consent. Legal action is only undertaken when all other efforts fail and is not used under general circumstances.
If you’re considering leaving a credit card or hospital bill unpaid, be aware of the fact that doing so for long enough will almost certainly result in your creditor remanding the full balance you owe to a collection agency for debt recovery. A debt collection agency is any organization whose sole purpose is to collect overdue debts.
Debt Collection agencies usually purchase old debts directly from businesses that wish to clear their accounting ledgers. Very few businesses, if any, will sell their old debts to collection agencies before the debt goes six months without any activity. After the six month mark, most companies consider the debtor unlikely to ever pay and prefer to take a loss on the account rather than continue to dedicate corporate resources to collection activity. Occasionally, third-party collection organizations also work on commission.
When collection consumer debts, all debt recovery organizations must follow the Fair Debt Collection Practices Act (FDCPA) to ensure that each consumer’s rights are respected throughout the collection process. The FDCPA dictates that collection agents cannot harass debtors, misrepresent themselves or the company they work for or disclose private consumer information with anyone other than the consumer. Failing to do so could result in a lawsuit.
Debt Collection agencies frequently report each of their accounts to the credit bureaus. When a company reports an account to the credit bureaus, a trade line appears on the debtor’s credit report. In the case of adverse accounts, such as collection accounts, the trade line is derogatory and will always have a damaging effect on the debtor’s credit rating.
It could be argued that an internal credit control department provides the same service as a debt collection agency. However, a debt collection agency can often provide better results whilst being more cost effective. The effect of a third party debt recovery agency becoming involved should also not be underestimated. Often, a simple demand for payment from a third party agency can be the prompt a debtor requires to settle an unpaid account.
A debt collection agency can also provide additional services to the core business of debt recovery. For instance, a collection agency may also provide legal services, enquiry agents, process serving, company searches, credit reports & company formations in addition to debt collection services. An agency providing all of these services can therefore be a “one stop shop” for all your credit control requirements.
A debt collection agency may also have its own in house legal department employing solicitors & legal clerks. Such firms provide a real alternative to the traditional option of employing a solicitor & often at a fraction of the cost. A debt recovery agency with an in house legal department often provides a much more professional service than a firm of solicitors, who may not be specialists in the debt recovery arena.
Debt collection agents often have a less than desirable image. However, in recent years much has been done to regulate the industry to ensure that an efficient & ethical service is provided at a reasonable price. Ensure that any debt recovery agency you consider engaging is regulated by the relevant governing bodies & holds the appropriate licenses & accreditations.
When considering engaging a third party agency also make sure that you understand the fees & pricing structure. Avoid any collection agency that requires payment upfront or requires you to purchase credits or join any form of membership scheme. A reputable debt collection agency will have a clear & concise fee structure which will usually be a set commission on any monies recovered.
Choosing the right debt collection agency will assist to reduce your credit control costs, will reduce your debtor days & therefore make your business more profitable whilst at the same time leaving you with more time to run your business.
Deciding on your debt collection agency is a task which is crucial for your business. You cannot afford to get it wrong. Keeping a few points in mind while choosing your debt collection agency would help.
Debt Collection Agencies (DCAs) offer third-party assistance when your best efforts to collect debt are thwarted. They are a pre-legal course you could take for debt collection. Services of a reputable debt collection agency are designed to protect your reputation, retain your customer base and maximize your cash flow. However, you should examine all debt collection agencies on the table against some basic criteria. Decide on a DCA that ticks all of your boxes.
How to Choose Your Debt Collection Agency
Following a well thought out procedure while selecting a Debt Recovery Agency will always help.
Search
Searching the database of the Credit Services Association (CSA) is the best place to look for a Debt Collection Agency (DCA). The CSA is the umbrella body for the collection industry, which bounds its members with its Code of Practice. This ensures legal and ethical practices, high business standards, and fairness in dealing with your customers.
However, before you visit CSA website, you should determine whether you need B2B or B2C competent debt collectors. Every agency has its core competency in B2B or B2C debt collections. Both the streams require different skills sets and working practices are also different. So look at this aspect before taking the final call.
Shortlist
When you have readied a shortlist of DCAs, begin testing their openness, integrity and customer service skills. For determining their level of competency, ask them following questions:
* Do you have customers in my particular business stream?
* Can you offer me references that I can contact?
* Do you operate on a no-collection-no-commission basis?
* What are your remittance rules?
* Do you provide online performance reporting?
If the debt collection agency provides satisfactory answers to your questions, you can move ahead.
Satisfy
Now is the time to take a final call on appointing the DCA. Make an appointment with the DCAs you have finalized and put up all the queries you have. You could ask them whether they have in-house tracing system to locate absconded debtors, their skills regarding overseas collection, and in-house legal assistance.
Whether the debt collector will accept a payment arrangement depends on the debt collector, the debt, the amount you’re proposing to pay, and the amount of time the collector has had the debt. If you’re only able to make smaller monthly payments on your debt, contact the collection agency handling the debt and ask for a payment arrangement.
Debt collectors typically hold debts for about six months, so if you’ll have more success making a payment arrangement in the first month or two after the collector contacts you. On the other hand, if you wait a few months before proposing a payment arrangement, the collector might refuse or push for a higher payment since it will be losing the account soon.
Note that if you make a payment arrangement with a debt collector, it can restart the statute of limitations on the debt. The statute of limitations limits the amount of time the debt collector can sue you for the debt. This time limit varies by state and is usually between three and six years, but can be as long as 15 years.
Before you suggest a payment arrangement, review your budget to figure out how much you can afford to repay each month. Don’t let the collector push you into paying more than you can afford to. If the collector doesn’t accept payment arrangements, you can put aside some money each month until you’ve saved up enough to pay the account in full.
The Fair Debt Collection Practices Act (FDCPA) protects you against harassment from a debt collector, and your state may have additional laws governing what collection agencies can, and cannot do. To find out about laws in your own state, contact your state’s attorney general.
Under the Fair Debt Collection Practices Act, a debt collector is defined as anyone who collects debts on a regular basis. This does include attorneys, but only if they do so on a regular basis.
Debt collectors may pursue you for personal, family, and household debts. If your business structure is set up so that you are personally liable for debts, a debt collector may pursue you personally for repayment.
How a Debt May Collector Contact You
As long as the times or places are not “inconvenient” or excessive, a debt collector may contact you by:
• Telephone
• Fax
• Telegram
• Mail
• Email
A debt collected can also contact you in person, or by any other means to times that you have agreed to.
Is a Debt Collector Allowed to Contact You at Work?
A debt collector can only contact you at work only if your employer approves, otherwise, you can simply say that you are not permitted personal calls at work.
Is a Debt Collector Allowed to Contact Anyone Else About Your Debt?
If you ask a debt collector to contact an attorney on your behalf, they may not contact you again. If you do not have an attorney, a collector may contact other people only to:
• Ask your phone number, and
• Where you work.
Debt collectors can only contact third parties to ask information about one time. In most states, collectors may not tell anyone that you owe money, or lie about who they are or why they are calling.
A debt collection agency is a business that collects unpaid, past due debts for other businesses. A company you do business with might send your account to a debt collection agency after you fail to pay your bill for a few months. Debt collection agencies use several different methods to get you to pay your unpaid debt including: calling you at home and work, sending letters to your home, listing the debt on your credit report, and sometimes even filing a lawsuit against you.
Debt collector may refer to a specific person working for a collection agency or sometimes it refers to the entire collection agency.
Debt collection agencies collect debts for a fee or percentage of the total amount owed. This fee is based on how old the debts are (the fresher the better) and how much business a creditor has to offer. The standard rate in the industry for business-to-business accounts is 30 per cent. The rate for collecting consumer accounts is higher.
However, debt collection agencies have experience with and knowledge about debt collection that we, as individual business owners, don’t have and hiring one can be well worth it if the amount of outstanding accounts receivable warrants it.
Proactive Policies Are the Best Way to Get Paid
As you’ve already guessed, the best ways to ensure you get paid for the products you sell and the services you provide is set proactive policies and procedures in place to cut down on the number of delinquent accounts receivable your small business has to deal with.
Things such as having credit policies in place, performing credit checks on customers and clients, having a partial payment policy and being clear and upfront about your payment expectations both in person and on your invoices will go a long ways towards ensuring that you get paid and your small business doesn’t get stuck with a lot of bad debt.
