A word about rates… Are you really getting what you bargained for?
There’s an old adage: “If it seems too good to be true, it probably is.” Regretfully, in this highly competitive field, some agencies are fast and loose with the truth when it comes to what they actually charge for collections. In many cases, charges aren’t published at all, leaving room for haggling or wiggle room down the line. In the view of Davis and Goldmark, that’s not the way to do business and it’s not the way we have remained a leader in this business for 37 years. Honesty and clarity have always served us and our clients well and is one of the reasons that Davis and Goldmark is one of the only collection agencies in the US to earn and maintain an A+ rating with the Better Business Bureau (now Business Consumer Alliance). There will never be confusion or ambiguity when it comes to what we charge on collections. We have always proudly published our schedule of charges on our website and printed material.
Unfortunately, there is a common notion among many credit managers that collection agencies are pretty much the same in what they do to collect, so going with the agency that offers the lowest rate seems to make sense. There is another old adage: “You get what you pay for.” In the collection business, like all businesses, we have to make a profit in order to survive. The rates we charge are extremely reasonable when considering the exhaustive lengths we go to in insuring that every dollar due our clients is collected. This includes thorough skip tracing, asset searches and multi-stage personal collection. If required, attorney handling is available for an additional charge. Obviously, we don’t go to these lengths to run up our overhead, but because we know that these steps are required if we are to insure to our clients that they are obtaining maximum results from their agency. After all, rates mean nothing if the money isn’t being collected.
Standard Rate Schedule
For accounts in the United States, its Territories and Canada – collected in house without attorney involvement
25% of the first $2,000 collected.
20% of amounts collected in excess of $2000.
50% of collections under $150.
$75 fee on collections of $151 to $300.
On authorized merchandise returns, one-half of the regular fee will apply.
Attorney/Legal Rate Schedule
Attorney Demand: 30% on all amounts received following referral to attorney.
Litigation: 40% on amounts received following the filing of a lawsuit.
Applicable on accounts that are less than 90 days past due, or on amounts over $20,000.
All Special Rates are negotiable prior to placement.
Rates on consumer collections range from 30% to 50% and are based on the type of debt and volume placed.
International Rate Schedule
Accounts outside the United States, its Territories and Canada 30% standard rates.
Rates above the standard require client’s advance approval.