How do I become a client of RSD?
Simply contact one of our Client Service Reps by calling 888.701.8181 to provide us with information necessary for us to set up a client account for you in our system. You will be provided with either paper or electronic Account Placement forms, depending on your preference. You will also receive a user ID and password for logging into our system to place claims or look up account information.
When should I place an account for collection?
The age of a delinquent account is one of the biggest factors in determining whether or not a debt gets paid. The older the debt, the harder it is to collect. A rule of thumb to remember is that after three months the probability is that you will only collect $.73 of each dollar delinquent…after six months, only about $.54 of every dollar...and after one year, the best expectation is that only about $.26 of every delinquent dollar will be collected. The best time to enlist the services of a collection agency is 60-90 days of the invoice due date. Incorporating this strategy will help ensure maximum recoveries with the least cost to your company.
If the debtor is in your general area and you cannot reach them by phone, email or regular mail, are onsite visits a possibility?
If the phone is still ringing, the website is still up, and our demand letters appear to be arriving at the debtor’s location, within 48 hours RSD will either send one of its field investigators or work with one of its bonded investigation partners to confirm a debtor’s physical existence and viability.
In terms of time, money, and resources, at what point do you decide to pursue a claim through litigation?
One of the most important factors to consider prior to litigation is the ability to confirm the debtor’s bank account information (or other liquid assets). Vetting the debtor for suit-worthiness (age, balance, existing liens, judgments, UCC’s, etc.) is very important to our clients as it helps control wasted dollars spent on unnecessary lawsuits that have no chance of success.
How often are funds collected from the debtor remitted to us?
As soon as we have confirmed that the debtor’s payment has cleared our bank, the funds become eligible for remittance to our clients. Currently, we remit on the 15th and 30th of each month.
Why use a collection agency?
Debtors will often pay a collection agency even though they never cooperated with the original creditor, mainly because a collection agency will typically increase the psychological anxiety associated with a debt. In addition, the debtor will understand that time is running out on avoiding payment and that the creditor is serious about recovering what is owed to them. Furthermore, many debtors are wary of the impact that a collection account can have on their credit score.
My company is very customer oriented. Can you collect without damaging goodwill or jeopardizing future relationships with our customers?
Yes, we can. At RSD we adopt a professional, business-like approach in all of our communications with debtors. In fact, over the years, many debtors have retained our services after fulfilling their obligation to one of our clients because they respected the way we approached them. That is the highest compliment we can get and we get them on a regular basis. We realize that today's slow-paying customer can often be converted into tomorrow's good-paying customer with the right amount of collection follow-up and negotiation skill.
In this age of cyber risk, what are some of your security measures to safeguarding the claim data submitted to you?
Unfortunately, in this day and age no company or government agency is completely secure from the most sophisticated cyber attacks. However, our IT team regularly tests and strengthens our fire walls, changes security codes, configurations, and passwords, and employs various virus detection software to reasonably insure that the data submitted by all of our clients is safe and secure.