The Functions of BCA Financial Services Collection
If you have had little or no experience with a collection agency, we hope
this memo will acquaint you with what to expect as well as our mutual responsibilities.
We begin immediately
1. A file is started on each account the same day it is received and
debtor contact is begun at once either by mail, phone or both, in a legally proper manner, to effect payment as promptly as
possible. This understanding of our mutual responsibilities commences the same day.
*** Direct payments ***
2. Payment by debtor may be made to your office. So that neither you
nor BCA incurs any liability, it is most important that you advise us promptly of payment to your office.
*** Monthly reports ***
3. You will know, by our month-end statement, of any payments received in our office. Repeated
requests for status information will only deter us from our collection duties.
*** Settlements ***
4. Settlements are your prerogative. Special
circumstances may occasionally
call for discretion in this regard. Fees are billed to you based on the settlement amount only. (Where settlement is by return
of merchandise or credit, a half-rate will be billed). If the case is in suit, DO NOT attempt to negotiate or settle as you
may compromise the attorney’s chances of recovering your court costs and other charges that your debtor may owe you.
*** Timetable ***REGARDING PAYMENTS
MADE TO YOUR OFFICE: You may choose to deposit any full or part payment in your account and advise us promptly, or
you may send it on to us for deposit in our trust account (in which case, should it bounce, we would absorb the bank service
An agency hopes to collect each account in about sixty to ninety days. There will be, however, many exceptions such as tracing
a “skip” (moved, left no address) monitoring a part payment plan, legal action, etc. In the case of suit against
your debtor, neither the agency nor the attorney have any control over the sometimes lengthy timetable of the courts.
Bear in mind that a collection agency expends 100% of its overhead, labor and costs to collect an average of 25% of
accounts submitted. There are many valid reasons why other accounts may not be collected or collectible. The more information
you can provide the more you can enhance the success ratio. Information such as phone numbers and place of business are most
Either way permits us to monitor and maintain discipline with your debtor. If you accept a PARTIAL PAYMENT from
your debtor please call us and inform us of the arrangement that was made and any new information on debtor’s check
or money order that may be helpful as we follow up for additional payments.
PURPOSE OF OUR “ACKNOWLEDGMENT”
The claims you sent in are acknowledged promptly so that you know we received the information accurately and that you
have a record of the accounts turned over. Occasionally you will notice a difference in the amount turned over. If you do
not normally add the legal rate of interest or a service charge, we will assume that we have your authority to add applicable
interest , where practical and to employ or retain this “payment motivation” at our discretion. When interest
appears on a debt statement or collection letter, it signals to the debtor that this debt is accumulating and that prompt
payment is an economical advantage to him. We urge you to watch your “AGEING” column where it refers to “DAYS”...depending
on your business, you may want to keep an eye on the 90-120-150 day accounts. DELAY ALWAYS WORKS TO THE ADVANTAGE OF THE DEBTOR.
We normally do not accept “secondary placements” (accounts
which were previously placed with an attorney or another agency) and then only at a 50% rate. Each such account, however,
may be evaluated on a case by case basis.
We look forward to a long, happy and mutually beneficial relationship