Debt Recovery

All accounts placed for collection will be acknowledged upon receipt and set up for immediate collection in our fully automated collection system. Collection action is initiated within 48 hours from the time of placement, often within 24 hours.

Each account will receive an initial written demand, which includes a validation clause (the Mini-Miranda as required by federal law) in order to bring to the surface any disputes and thereby allowing our collection staff to resolve them and continue collection efforts while encouraging a satisfactory client/debtor relationship.

Accounts will receive collection efforts on a timely and equal basis to ensure maximum recovery regardless of the balance, with a normal follow-up of five to ten days depending on the debtor’s response.

The follow-up depends on whether the debtor makes a promise, keeps a promise or breaks a promise. Our collectors are trained to handle every account on an individual basis up to and including the recommendation of initiation of legal action with your written permission.

Every account will be worked diligently and professionally until the account is either collected in full, deemed uncollectible, or a suit is filed.

Our philosophy on legal action differs greatly from most of our competitors. We do not believe it to be in the best interest of our clients to take legal action unless it is felt very strongly that such action will ultimately result in the collection of an account. Strict criteria must be met to qualify for litigation.

We are electronically linked to all major credit bureaus. With your approval, accounts that are not paid within 30 days of our normal collection efforts are reported to the bureaus as having an outstanding collection account. This enables us to monitor the account in order to obtain new information.

Unlike many of our competitors we also take a different view on accounts that file for bankruptcy. We do not close an account as soon as a bankruptcy notice is received. We will file the appropriate claims and monitor the account until a discharge notice has been received from the bankruptcy court, payments from the trustee are received or a dismissal is given, at which time collection efforts are resumed.

The management of CBC recognizes that a realistic “fair but firm” approach to collection is the most effective technique in today’s economy. We are aware that on a certain percentage of accounts, little or no response has resulted from prior internal collection efforts. We are never forgetful in the fact that our task is to provide the motivation to pay our client’s account and to show the debtor that the ability to pay the account exists within their budget.