This is not an “either / or” question but rather one of the correct sequence. We recommend giving your significantly overdue accounts to a collections agency first. There are several reasons for giving your accounts to an agency once you are no longer making progress with your in-house collections process:
- A client or patient may become “defensive” when they are contacted by a lawyer and may become less likely to pay.
- When you contact a collections agency, you know they are specialized in collections. This includes procedures, software and other processes that an efficient collections agency has in house. A lawyer may not be specialized on collections and may not have these tools available to him/her. Furthermore, you can select an agency based on specialization, which we will address in another post.
- An agency may be more flexible in terms of individual dollar amounts that they will accept per client/patient. In other words, the minimum dollar amount they take on may be lower than what a lawyer will accept.
- An agency may be a less expensive option for your collections as their fee structure is likely different from that of a lawyer.
If you would like to learn more, we suggest the following:
- What does a collections agency do?
- When do you need a collections agency?
- The “Why Choose Alacrity “ page on this website