Collection Agency Language

Following is some common collection agency language and collections terms.

Dunning
These are collection letters that are sent from the collection agency on behalf of the creditor. The attorney dunning process refers to the last letter that is sent from a lawyer outlining upcoming legal action.

Forwarding
This is the process of transferring a debtor's account from one collection agency to another agency in a different part of the country. Forwarding occurs when an agency is not licensed to do business in the state where a debtor is located.

Write Off Rate
This is the accepted amount of uncollectible debt that firms should expect as a risk of issuing credit. With low margin transactions, firms should aim for rates of less than one percent. With high margin transactions, firms should aim for rates of less than five percent. Write Off Rate is also called the Charge Off Rate.

Skiptracing
A method the collection agency uses to find debtors who have moved or can no longer be reached at their billing addresses or phone numbers.

Net Back
The amount of dollars that you get back from the collection agency after they have made a collection and taken their fee.

These are just some common collections terms and collection agency language.

Recommended Collection Agency Sites:

Collection Agencies
Find ethical and professional collection agencies.