Super 7 Commercial Agencies 2014

Collection Advisor worked with the International Association of Commercial Collectors finding commercial collection agencies that are held in high regard by peers and have aligned themselves with values such as those listed by the IACC certification which includes being sufficiently bonded and licensed while exemplifying ideal financial and operational procedures as determined by a third party. Collection Advisor talked with these agencies about commercial collections and how they have achieved success. If you would like to nominate a Top Commercial Agency, contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..

COMMERCIAL COLLECTION CORPORATION OF NEW YORK | Bob Ingold, President

How does a client transmit account information to you and keep up-todate with the account’s status?
We have setup methods that accommodateour clients. The more automated customers willsend over accounts with FTP or other electronic placement.They will view activity online, in real-time. Other clients sendemail, fax, or mail files to us. Our motto is “Whatever Worksfor You”. Reports are the same. While we can do real-timereview of email, we still offer the client the approach “Keep itBest for the Client”.

How is it determined that an account is uncollectable?
Many factors go into this and it is difficult to offer one answer: company out of business, bankrupt, judgment proof, too small to sue, disputed, lack of documentation; just to name a few. The simple answer is, we verify the circumstances and provide full information back to the client. Inevitably, it is the client’s decision on proceeding.

What is the most important technology your agency uses?
It may sound simple, but the telephone. While we have computers, fax machines, email, etc, the whole thing comes to a stop without phones. Because of that we have a very complete disaster plan.


ROSS, STUART & DAWSON INC. | Lee VandenHeuvel, President

Where do you collect? Why?
Our agency collects mostly in theMidwest region, as we are a smaller regional-based player.However, with the increase in website marketing efforts,we are seeing an influx of new clients from coast tocoast. We are also handling more international filesthan ever before due to globalization. We have anetwork of collection partnerships in over 50 countriesthrough our association with the IACC whichmakes it very streamlined to quickly begin the collectionprocess virtually anywhere in the world.

How is it determined that an account is uncollectable?
When the RSD collector handing the file has exhausted all efforts of contact and/or obtaining a reasonable resolution, a determination is then made on how to proceed with the file. Our office will determine if the balance versus the cost of litigation is worth forwarding to our legal department. The representative will further obtain credit report information on the customer regarding their financial situation and any listed assets, as well as existing liens, judgments, and UCC filings. We will also attempt to verify any bank and/or employment information in order to help secure payment through the garnishment process if necessary. If all of the aforementioned information indicates that litigation could possibly obtain payment, we forward the file to our legal department for further review and handling. In the alternative, if based upon our findings we do not feel that litigation would be a viable option, we would reluctantly close our file and provide the most detailed explanation of same to the client.

What is the key to success in customer relations?
We believe strongly and strive to provide world-class client service. It’s all about communication and building relationships. Knowing a client’s preferences on how they wish to be communicated with is important, but only if you design a follow-up system that actually delivers on those expectations! This is where I see most agencies falter. When we bring on new clients, we always ask them why they are making a change. The #1 reason we hear is the agency doesn’t communicate properly and keep them up-to-date, which translated, means they failed to build a solid relationship. The #2 reason is they don’t collect very much. This tells me that servicing the client and building a strong foundation are more important to clients than the actual collection liquidation percentage. Face to face meetings with clients is still the best way to nurture and develop rock solid relationships. Increase your ‘business meals’ budget and you will be fine.


CST CO. | Palmer H. (Pete) Roth, President

What is the most important technology your agency uses?
Making use of the proper technology to assist our adjustors (what others may call collectors) in managing their accounts, providing good tools for our outside reps to use in managing their territories, and giving our clients the means to review and oversee the accounts they entrust us with, are all important. However, technology doesn’t hold a candle to professional staff members. No matter how good the tools are, having the best people is the key. Many of our clients are surprised to learn that our adjustors average over 15 years with CST; and many have over 20 years experience in the industry. They are the most important piece to our collection strategy.

What is the key to success in customer relations?
Communicate. Ask. Clarify. Discuss. No two credit departments handle everything the same way, not even within the same corporation. CST has always been very big on customizing the service to fit each client’s needs and wants. We can have three sets of special instructions for every client. We may have docketing instructions so that those doing data entry know client preferences regarding things such as: with whom we communicate on different accounts, handling instructions to help the adjustors manage and report on an account according to the client’s wishes. We may also have bookkeeping instructions to make sure we manage the remittance process in just the way the client prefers.

What do you think the future holds for commercial collections?
That’s an interesting one, because the economy has had such a strong negative effect on this industry. First, I have always been concerned with how so many states want to bundle the commercial collection industry with consumer collections, but we are totally different segments. Consumer collection laws can be arbitrary and completely impractical when a state tries to apply them to a commercial debt. Second, I’m sure we will see more and more states adding licensing requirements, likely doing so more as an additional revenue stream rather than to protect the debtor or manage the agencies. Third, with the coarsening of American culture, I think we will find it tougher for our outside reps to make collection calls so regularly. I already make it clear now, that if they in any way feel that their safety may be compromised, to not make the visit, and let’s contact the client. Lastly, I think more and more agencies will depend upon the Internet to a greater degree. Cloud-based data management, higher dependence on web access and information interchange through a highly evolved website will be a must-have for the more tech-savvy client.


ALTUS, GLOBAL TRADE SOLUTIONS | Thomas E. Brenan IV, President

What bonds or licenses are required to collect commercial accounts?
Bonds and licenses for commercial collections are required in the following states: AZ, AR, City of Buffalo, City of Chicago, City of New York, FL, ID, IL, IN, MI, MN, NE, NV, NC, ND, OR, RI, TN, UT, WA, WV. States that Altus possesses an exemption letter from are: AK, CO, CT, DE, HI, IA, ME, MD, MA, NM, WI, WY. All other states have no licensing or bonding requirements for commercial collection agencies.

What are the values of the majority of your accounts?
Our average placement is $5,600. We have collected accounts in excess of $2 million on occasion and as low as $25.

How is it determined that an account is uncollectable?
Predominant factors are: 1) Irresolvable disputes, 2) debtor insolvency and bankruptcy, and 3) clients willingness or unwillingness to escalate the collection process.


JOHNSON, MORGAN & WHITE | Robert G. Cooper, President

How does Johnson, Morgan & White deal with a debtor company’s bankruptcy?
We follow federal bankruptcy guidelines and assist our clients with any bankruptcy requirements. We also have our own division called Bankruptcy Recovery Associates www.bk-recovery.com.

What is the key to success in customer relations?
We are selective with our clients and we don’t over promise or under deliver. It is mandatory that our employees keep their cell phones on after business hours so that our clients can reach us at any time.

How does a client transmit account information to you and keep up to date with the account’s status?
We accept electronic placements, via e-mail/facsimile or through our secure FTP access. Our clients have up to date real time access via our client view portal.


ABC-AMEGA INC. | David Herer, CEO

Where do you collect? Why?
ABC-Amega provides collection services on every continent and with every major U.S. trading partner. Due to the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) trade sanctions we do not cover collections in Cuba, Iran, Myanmar (Burma), North Korea, Sudan, or Syria. This list is subject to change in the event OFAC imposes new sanctions or lifts existing sanctions. ABC-Amega has cultivated a market position as one of the few commercial firms globally that is a specialist in overseas collections. We aggressively seek international collections opportunities from US and foreign multinational corporations as well as other entities.

We actively participate in two leading international organizations: FCIB, an association of professionals in Finance, Credit and International Business, and ICTF, an association of International Credit and Trade Finance professionals, of which we are a Silver Sponsor Partner. Additionally, we are platinum members of the Credit Research Foundation (CRF), whose multinational and exporting members have collection needs throughout the world.

When is the best time in an account’s lifetime to receive and begin working the account?
Regardless of whether or not a client chooses to perform in-house collection activities before turning accounts over to an outside collection agency, the best time to begin working the account is truly before it is past due. Once an account is more than 30 days delinquent, the collectability begins to drop dramatically with each subsequent month. By just 90 days past due, the probability of collection drops to below 70% (per the Commercial Collection Agency Association (CCAA)). Therefore, we believe soft collection techniques should be part of a company’s ongoing AR process.


JOSEPH, MANN & CREED | Bill Mann, Partner & CFO

What is the key to success in customer relations?
Managing client expectations. We found it’s important to clear that up right up front so there are not a lot of questions after the fact. If things change, it’s good to call up the client and talk through those things. If anything happens, with our bigger clients, we have a monthly call and we talk about anything that has happened. No matter how long we’ve had the client, whether it’s brand new or ongoing, we try to touch base and make sure we understand expectations. We let them know what our expectations are of them and make sure we’re on the same page.

What do you think the future holds for commercial collections?
Increased regulation. Right now there are a lot of things going on with the Consumer Financial Protection Bureau; and they are really honing in on the consumer collection space. Everything will eventually roll down to the commercial claims as well, to the point where in the future there will be no differentiation between a commercial account and a consumer account.

When is the best time in an account’s lifetime to receive and begin working the account?
When the delinquency is less than 90 days.