Collection Agencies - Industry Lingo

To make the right business purchases, you have to know the language. Here's a guide to collection agency lingo.

Dunning
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
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
The accepted amount of bad, uncollectable debt firms should expect as a simple risk of issuing credit. With low profit transactions, firms should aim for rates of less than one percent. With high profit transactions, firms should aim for rates of less than five percent. Also called 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.

Get FREE quotes for collection agency from BuyerZone.com

Since 1992, millions of businesses have saved on purchases using BuyerZone's expert advice and Request-for-Quotes service.

Back to Top Email Printer Friendly View

RATE THIS ARTICLE
Rate it:

Overall Rating: Good