Re: doing collections on my own
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Posted by Bob (22.214.171.124) on October 05, 2009 at 21:08:57:
In Reply to: doing collections on my own posted by wendi on September 24, 2009 at 18:21:17:
In order to report the debts to the credit bureaus, you would need to set up a membership account. This can involve a physical visit to your business, and other evidence that you are legitimate. There are fees involved, although I don't know how much. Then, you would be able to pull reports on prospective customers, and also submit account history data, like those bad debts.
It is a fairly big hassle, especially if you are a small business with relatively low volume.
I would suggest just contracting with a collection agency, since they may be inclined to spend more time and energy, and are already set up to do bureau reporting. Then, when you are doing your internal collections for the first few contacts after default, you can say that, non-payment will result in referral to the outside collectors, and bureau reporting.
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