Collection Management Services

Collection Procedures

Collection Management Services, Inc. will accept accounts for collection via the web, fax, or mail. If you have hundreds of accounts to place for collection, we can provide pickup service within a given radius to avoid high mail costs. We will provide your company with an acknowledgement within 24-48 hours of receipt. Time is of the essence in placing accounts for collections. The older an account becomes, the lower your chances of recovery. As an account receivable ages sixty to ninety days past its due date, it is critical to make a decision upon placing it for collection. Our procedure is to mail a series of letters to each debtor and also to contact the debtor by telephone to accept payment in full or to arrange a reasonable payment plan. We report all accounts to Equifax on a monthly basis. This information will remain on the debtor's credit history for seven years from the date of service and will inform any credit grantor of collection accounts upon access of a given consumer's credit report. These collection accounts listed on a consumer's credit history provide leverage in collecting the outstanding debt.

There are circumstances in which our agency will be unable to recover your outstanding receivables through the methods described above. Therefore, if we have a valid address and have located the debtor's assets, we will handle the legal documentation and, with your approval, will forward it to our attorney for processing. We are affiliated with a local attorney who will pursue your collection account through litigation. Our agency will pay the fees associated with the litigation process.

CMS will only accept settlements with your approval. Our agency maintains a valid trust account, and all funds collected are placed in this account. We make our disbursements on the 20th day of each month when said monies are collected. We do ask that if payment is received at your location from the debtor by phone or mail that you please contact our office to submit a report of payment. This will ensure proper accounting and updating of records for both parties. A check will be forwarded to your office for the full amount recovered in a given month less our fee, which is a previously agreed upon percentage. We will also provide monthly status reports upon request.

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