Debt Collection Agency USA: How to Find a Reliable National Partner
Debt Collection Agency USA: The Selection Guide for International Creditors
The US Complexity
The United States is not one jurisdiction — it's 50 states, each with its own debt collection laws, licensing requirements, statutes of limitation, and court systems. A collection agency operating in New York must comply with DCWP licensing and NYC-specific rules. An agency collecting in California must comply with the Rosenthal Act and DFPI licensing. Texas has no state licensing requirement. Florida requires registration with the Office of Financial Regulation.
For international creditors, this patchwork creates confusion. The solution: work with an agency that has nationwide capability — either through its own multi-state licensing or through a network of state-licensed affiliates.
Verification Checklist
State licensing. Verify the agency is licensed in every state where it will be collecting. States requiring licensing include: California, New York, Florida, Texas (for certain debt types), Illinois, Massachusetts, and most others. The agency should provide licence numbers on request.
ACA International membership. The Association of Credit and Collection Professionals sets industry standards for ethical collection practices. ACA membership isn't legally required, but it indicates that the agency adheres to professional standards and has access to industry resources.
Compliance infrastructure. The agency should demonstrate FDCPA compliance (for consumer debts), state-specific compliance, and documented complaint handling procedures. Ask about their compliance officer, training programmes, and audit history.
Court access. The agency must work with attorneys licensed in the relevant states who can file court proceedings, attend hearings, and execute enforcement. Without litigation capability, the agency's only tool is persuasion.
Fee Structures
Contingency (standard): 15-25% for commercial claims under 12 months. Higher for aged claims. No recovery, no fee.
Flat fee (volume placements): Some agencies offer flat-fee arrangements for high-volume, lower-value claims. Typically $10-$25 per account for initial demand letters, with contingency conversion if amicable efforts fail.
Legal costs (separate): Court filing fees, service of process, and attorney fees are typically passed through at cost. These should be pre-approved before any filing.
What International Creditors Need
Currency handling. The agency should manage USD invoicing and payments, and transmit recovered funds in the creditor's preferred currency.
Reporting. Regular, documented reports on claim status, collection activity, and financial summaries. Online portal access is standard for major agencies.
Communication. An assigned account manager who understands the creditor's business context and can provide strategic advice on individual claims — not just automated status updates.
Finding a reliable US debt collection agency requires verifying state licensing, court access, and compliance infrastructure. For international creditors, the agency's ability to navigate 50 state jurisdictions from a single point of contact is the essential capability.
