Regarding debt collection, there are two main options: you can either do it yourself or hire a collection agency. Both have their pros and cons, but what about the cost? How much does a collection agency cost?
What should I know about this?
The cost of a collection agency typically depends on the type and size of the debt and the number of accounts being collected. Collection agencies usually charge a percentage fee that varies from around 15% to 50%. The higher the amount of debt owed, the lower their prices. Collection agencies also may have additional service fees for things such as skip tracing (locating an individual who has moved without leaving a forwarding address).
So, in conclusion, there is no one-size-fits-all answer when it comes to how much an agency will cost you. However, if you feel that hiring an agency is necessary for your situation, then it’s essential to do research before committing to any company or fee structure.
We hope this information has been useful to you.
