If you are unable to collect on a business or private debt, it is common to end up frustrated with the experience. Some people even find that the inability to collect on a debt leaves them unable to carry on normal business operations.

In these situations, it is helpful to remember that you have several options. You can send out letters on your own, turn the account over to a collection agency, or hire a collection lawyer. 

Because there are complexities involved in pursuing debts on your own, including detailed regulations and time-consuming searches, many people decide to hire a debt collection professional to handle the matter. This means that many people end up deciding between a collection attorney or a collection agency.

No matter which option you pursue, both will greatly increase your chances of collecting on a debt. There are, however, some significant advantages to selecting an attorney over an agency, which will be reviewed in this article.

Limitations involved with Debt Collection Agencies

Many businesses begin efforts to collect on a debt by contacting a debt collection agency. These agencies utilize a specialized phone system as well as software that helps automate the debt collection process and make it more cost-effective to collect on debts. 

A large number of debt collection agencies in Pennsylvania work on a contingency basis. This means that these companies are only paid after they collect on a debt. This amount is either a flat fee or a percentage of the total amount that is owed. 

It is also common for debt collection agencies to specialize in certain types of business models including motor vehicle lenders, physicians, and utility companies.

If a person wants to pursue legal action against an entity that owes a debt, a debt collection agency will be unable to help.

The Advantages of Collection Attorneys

In addition to debt collection agencies, some lawyers also specialize and focus on debt collection. Many people discover that lawyers are more cost-effective than collection agencies, particularly when legal action must be taken against a client. 

Collection lawyers either charge an hourly rate, a percentage of the amount collected, or both. 

While agencies might be able to file a credit report or contact a client, an attorney is necessary to pursue legal action against a client. This is because the Fair Debt Collection Practices Act prohibits agencies from pretending that they are lawyers or acting if they have lawyers on staff if they do not.

Speak with a Debt Collection Lawyer Today

If you think that it might be necessary to pursue legal action against someone to collect on a debt, you need a debt collection lawyer. Regardless of whether you select a debt collection agency or lawyer, it is always a good idea to perform research first. 

To learn more about Ross Collection Solutions today, do not hesitate to fill out an online form or call us by phone.