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Commercial Collection Services - FAQ's

 

CMA Collections

 
1. What makes you different than the competition?
 

CMA is a member of the Collection Agency Section of the Commercial Law League of America, only 2% of all agencies have attained membership.

Your accounts are more secure with our organization than with any startup or newly established collection agency. In addition, CMA is bonded, we hold all collected money in trust accounts not operating accounts, and we use only bonded attorneys.

2. How do you handle accounts?
 

On an immediate service basis, a acknowledgment letter is sent to the debtor within 24 hours. All immediate service accounts are assigned to collectors the day you place them. The collector will review the file and contact you if further information is needed before the first call.

The ten day free demand accounts are sent a collection letter the day they are booked. The collector then holds the file in abeyance for 10 calendar days. If money is collected in those 10 days there is no charge to your company. On the eleventh day the collector proceeds with aggressive collection action.

3. How long do you work an account?
 

The length of time will depend on what happens during the first weeks of collection. If a payment has been secured with in the first two weeks, the file will continue to be worked by the collector until the full balance is paid, or until the debtor starts breaking promises.

If there have been no payments, the account will be reviewed for possible legal action.

In general you should have a good picture of where your account is headed after 20 days of collection action.

4. What happens when a account goes to legal?
 

Before an account is sent to an attorney, you will have a chance to review it and decide whether your company wants to proceed. CMA will ask for forwarded court costs from your company. These forwarded costs are completely recoverable in the judgment that our attorneys will obtain.

CMA audits all attorney actions to make sure your account is moving on a timely basis. You will continue to receive reports from CMA.

5. How do you handle out of state accounts?
  Out of state accounts are handled in the same fashion as California accounts. Through our NACM affiliates and our database of information on businesses we can reach out and touch, companies nationally and internationally. When you think about the main aspects of effective collection, telephone technique, it does not matter if you are next door or out of state.
6. How do you keep me updated?
  You are sent special reports on each of your accounts from the assigned collector. In addition you have phone access to the collectors any hour of the working day.
7. Do I use the online Collection placement form for the 10 day free demand?
  Yes, especially if it is easier for you to place online. Just check off the Ten Day free demand option on the Placement Form.

8.

What is the difference between Customer Service Coll. and aggressive?
  Use Customer Service collection if you think you might sell to the customer again after this debt is cleared up. It offers a softer collection approach. Use Aggressive Collection if you are willing to terminate the customer relationship, have heard rumors of bankruptcy or negative changes, or you have had unreasonable experiences trying to collect.
9. What is the difference between PreCollect and Immediate Collection?
  PreCollect offers a 30 day collection period where no rates apply and is a letters only service (less aggressive), Immediate Collection applies rates immediately and the collectors make phone and mail contact with the debtor (most aggressive).
10. What does roll over after 30 days mean?
  Roll Over after 30 days occurs in our PreCollect service. During PreCollect we send out two letters to your debtor over a 30 day period of time. On the 30th day- if their has been no payment and you have not withdrawn the account the debtor is Rolled Over into Immediate Collection. With Immediate Collection our rates do apply and the collector will be making phone contact with the debtor.

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