Why underwriters look closely at collection agencies
Payers who didn’t choose you
Consumers pay because they owe, not because they want to. Some later dispute payments they agreed to on the phone.
Heavy regulation
The Fair Debt Collection Practices Act, the CFPB’s Regulation F and state licensing all apply, and acquirers check your compliance.
Fees on payments
Convenience fees on consumer debt are limited by federal and state law and by card-brand rules. Getting them wrong is a common source of problems.
A payment setup that fits
How we usually set up collection agencies. Your consultant tailors it to how you actually sell.
- 1
Recorded or written authorization
Capture consent for every phone payment and payment plan, and keep it where you can find it.
- 2
Self-service payment portal
Let consumers pay online on their own schedule. Payments people make themselves are disputed far less.
- 3
Card and ACH side by side
Bank payments for larger balances and plans, with returns monitored.
What you’ll need to apply
Have these ready and your application moves faster. Your consultant confirms the exact list for the processor you’re matched with.
- Government ID for every owner with 25% or more
- Voided business check or bank letter
- Recent business bank statements
- Recent processing statements, if you have taken cards before
- Articles of incorporation and EIN letter
- A website with clear pricing, refund, cancellation and contact details
- Collection agency licenses for each state you collect in
- A sample client (creditor) agreement
- Your compliance policy, including disputes and validation
- Your call recording and payment authorization process
Why applications get declined, and how to avoid it
- Missing licenses in states where you collect
- Convenience fees charged in ways the law or card brands don’t allow
- No record of consumer authorization for phone payments
- Collecting debt types the acquirer excludes
We review your website, policies and statements against these before anything is submitted.
Keeping the account healthy after approval
Getting approved is half the job. These habits keep your account in good standing, and our platform tracks the numbers behind them for you.
- Send a receipt for every payment the moment it’s taken
- Confirm payment-plan dates in writing
- Have counsel review fee practices before you add them
- Watch ACH returns by reason code
Collection agencies: common questions
Can we charge a convenience fee?
Sometimes. It depends on your state, the agreement that created the debt, and card-brand rules. Get counsel’s sign-off, then we’ll set the account up to match.
Can consumers set up payment plans by card?
Yes, with written or recorded authorization for each scheduled charge and a reminder before each one.
Are first-party and third-party collectors treated the same?
Not always. Collecting your own receivables is usually lower risk than collecting for others. Tell us which you do.
What happens after I’m approved?
We keep working with you. Our platform gives you one view of every account, and we review your chargebacks, approval rate, fraud tools and fees with you so the account stays healthy and gets cheaper over time.