What is the difference between a debt collection law firm and debt collection agency? Richard clarifies a commonly asked question regarding collection agencies and lawyers.
A collection agency will make demands on the debtor. Often times clients will give a delinquent debt to a collection agency so that they can make demands on the debtor. They will then send demand letters and make demand calls.
The advantage that a collection law firm can provide over a collection agency is that we can provide all of those procedures.
The fact that the debtor gets there first contact directly from a collection law firm as opposed to a collection agency has more impact with the debtor. In addition to that, we can file suit. While we do have collectors on staff and our law firm and the attorneys do make demands, we have the ability to file a lawsuit. Most often filing the law suit is what’s going to result in the recovery the debt.