National Recovery Systems, Inc.

A Quick Note About Collection Fees:

We do not add our fees to the balance owed. Our goal is to make the best of a difficult situation and maximize your recovery.

Some collection agencies claim they can add their fees to the debt and collect those charges from the debtor. In reality, this is often an unrealistic expectation.

Attempting to increase the debtor's obligation significantly can create another obstacle to resolution and give them an excuse to delay or avoid payment altogether.

In most cases, it is far better to absorb our fee and recover the majority of the debt than to pursue an inflated balance and risk writing off the entire account after a lengthy collection effort.

Many agencies advertise that they will add their fees to the debt, but frequently those fees are never actually collected from the debtor. The client ultimately ends up paying the collection fee anyway, despite the initial representation.

Our approach is focused on realistic recoveries, practical solutions, and achieving the best possible net result for our clients.

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A realistic assesment of the past due collection issue:

The only way to truly determine what type of debtor you're dealing with is to engage a dedicated Business-to-Business collection agency—not a generalist firm handling thousands of consumer accounts, business accounts, and attorney referrals all under one roof.

A true commercial collection agency doesn't provide a token effort before pushing the account to litigation. We become the Legal Agent on the account and work alongside our client, taking the same gamble they took when they extended credit. We are only compensated when our client recovers money.

In a perfect world, every customer would honor their commitments and pay their bills on time. Unfortunately, that is not the world we live in. There are no debtor prisons, and in many commercial transactions the civil court system provides limited practical relief. Litigation is often expensive, time-consuming, and uncertain.

Our objective is to provide clients with a realistic valuation of their past-due receivables and a practical path toward recovery. Allowing an account to age while continually adding finance charges rarely resolves the problem. Likewise, pursuing an additional 18% to 20% in fees, penalties, or interest can sometimes jeopardize recovery of the principal balance itself and inflates an already suspect assest on the balance sheet. 

We focus on preserving and recovering the asset. In many cases, resolving the debt today and writing off our contingency fee is far better than spending months—or years—investing time, money, and frustration only to recover nothing at all.

The reality is that every past-due account represents a gamble. Our role is to help clients understand the risks, identify the type of debtor they are dealing with, and maximize the likelihood of recovery before the asset loses further value.

 

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