Frequently Asked Questions

We specialize in commercial debt recovery across multiple industries including healthcare, utilities, telecommunications, financial services, retail, and professional services. We handle both consumer and business-to-business debt collections. Our team has experience with medical bills, past-due invoices, subscription arrears, and other accounts receivable. We tailor our approach based on the industry and type of debt to maximize recovery while maintaining compliance.

We work with businesses of all sizes. There is no minimum portfolio size requirement - whether you have 10 accounts or 10,000, we can help. For individual account values, we typically work with accounts starting at $100, though we can accommodate smaller balances as part of a larger portfolio. Our flexible pricing models ensure our services make sense for your specific situation.

Our onboarding process is streamlined and efficient. Most clients are fully set up and ready to place accounts within 24-48 hours. This includes signing our service agreement, setting up secure file transfer, configuring your reporting preferences, and reviewing collection strategies. We understand that time is money when it comes to collections, so we make getting started as fast and easy as possible.

We need basic account information including debtor name, contact information (address, phone, email), account balance, invoice or account numbers, dates of service, and any relevant documentation supporting the debt. The more complete information you provide, the better we can serve you. We accept data via secure file transfer in most common formats (CSV, Excel, XML) and can work with you to automate ongoing placements.

With contingency pricing, we only get paid when you get paid. Our fee is a percentage of the amount we successfully collect. There are no upfront costs, monthly fees, or charges for unsuccessful accounts. This aligns our interests with yours - we're motivated to recover as much as possible. Contingency rates typically range from 25% to 40% depending on factors like account age, balance size, and portfolio volume. This model is ideal for older accounts or when you want to minimize risk.

Flat fee pricing means you pay a fixed amount per account we work, regardless of whether it's collected. This model works well for early-stage collections (30-90 days past due), high-volume portfolios with lower balances, or when you want predictable costs. Flat fees are typically lower than contingency percentages but provide budget certainty. Many clients use flat fee for newer accounts and contingency for older, harder-to-collect balances.

No. We believe in complete transparency. Our fee structure is clearly outlined in our service agreement, and there are no hidden charges. Standard collection activities including phone calls, letters, skip tracing, and reporting are included in our base fee. The only additional costs you might incur are optional services like legal action (if you choose to pursue it) or specialized skip tracing for difficult-to-locate individuals. These are always discussed and approved in advance.

We remit payments to you on a regular schedule, typically weekly or monthly depending on your preference. Payments are sent via ACH transfer or check, along with detailed reporting showing which accounts were paid. We hold payments briefly to ensure they clear (particularly checks from debtors), then forward your portion promptly. You'll always have real-time visibility into payments received through your online dashboard.

We use a multi-channel approach including phone calls, letters, emails, and text messages (where permitted). Our communication strategy is tailored to each account based on available contact information and debtor preferences. All communications are professional, respectful, and fully FDCPA compliant. We focus on finding solutions rather than making threats. Our collectors are trained in de-escalation and problem-solving to achieve the best outcomes.

You have 24/7 access to real-time reporting through our online dashboard. Log in anytime to see account status, payment history, contact attempts, and recovery performance. We also provide scheduled reports (weekly or monthly) delivered via email with detailed analytics and performance metrics. Custom reports can be generated on demand. Our reporting is comprehensive yet easy to understand, giving you full visibility into portfolio performance.

Absolutely. You maintain full control over your accounts. You can recall accounts at any time for any reason - perhaps the customer contacted you directly or the debt was paid outside our system. You can also set specific handling instructions such as "do not call before 10am" or "email only" for particular accounts. We work as an extension of your team and follow your direction on account management.

We handle disputes professionally and in full compliance with FDCPA regulations. When a debt is disputed, we immediately cease collection activity and notify you. We'll work with you to obtain verification of the debt (invoice, signed agreement, proof of delivery, etc.). Once verification is provided to the debtor, collection activity can resume if appropriate. Proper dispute handling protects both you and us from regulatory issues.

Yes. EthicalDebt is fully licensed as a collection agency in the State of Florida and maintains all required bonds and insurance. We comply with federal regulations including the Fair Debt Collection Practices Act (FDCPA) as well as state-specific requirements. Our licenses and certifications are current and can be verified through the Florida Office of Financial Regulation. This licensing protects you from liability and ensures we operate within legal boundaries.

Compliance is built into everything we do. Our collectors receive extensive training on FDCPA requirements and ethical collection practices. We use call recording and quality monitoring to ensure standards are met. Our letters and scripts are reviewed by legal counsel. We maintain detailed documentation of all communications. We stay current on regulatory changes and update our processes accordingly. Our compliance-first approach protects your business from potential liability.

We can report accounts to credit bureaus if you choose. Credit reporting can be an effective tool to motivate payment, but it must be done correctly to comply with the Fair Credit Reporting Act (FCRA). We handle all credit reporting procedures properly, including providing required notices and responding to disputes. Not all clients choose credit reporting - it depends on your industry, customer relationships, and collection strategy. We'll discuss the pros and cons during onboarding.

We can coordinate legal action through our network of collection attorneys if you choose to pursue that route. However, litigation is typically a last resort after other collection methods have been exhausted. Legal action makes sense for larger balances where the potential recovery justifies the costs. We'll discuss the decision with you on a case-by-case basis. Many of our clients find that our ethical approach resolves accounts without needing to go to court.

Recovery rates vary based on several factors including account age, balance size, quality of debtor information, and type of debt. Generally, newer accounts (under 90 days) have higher recovery rates than older accounts. Industry benchmarks suggest 30-50% recovery on third-party collections, but our ethical approach often exceeds these benchmarks because debtors are more willing to engage with us. We'll provide realistic expectations based on your specific portfolio when we speak with you.

Collection timelines vary significantly by account. Some debtors respond to our first contact and arrange payment immediately. Others may take several months of consistent outreach. We typically work accounts actively for 90-180 days, though we can continue longer if there's ongoing progress. Payment plans may extend the timeline but result in full recovery. We focus on early wins while maintaining persistence on harder accounts. Our reporting shows you the aging and status of all accounts in real-time.

Aggressive collection tactics often backfire - debtors avoid calls, refuse to engage, or file complaints. Our respectful approach encourages cooperation. We focus on understanding the debtor's situation and finding workable solutions rather than making threats. This leads to higher contact rates, more payment arrangements, and better voluntary compliance. Debtors who feel respected are more likely to prioritize paying your account. Additionally, ethical collections protect your brand reputation, which has long-term value beyond any single account.

Yes. We offer portfolio analysis and consulting services to help optimize your entire accounts receivable process. This might include reviewing your credit policies, improving early-stage collection efforts, identifying which accounts to work internally vs. outsource, and implementing better tracking systems. Many clients find that improving their internal processes reduces the volume of accounts that need third-party collection. We're happy to share our expertise to benefit your overall recovery performance.