Our Full Collection Program involves the services of a fully trained, professional collector whose skills have been honed to the point where a high percentage of accounts are paid on the first contact. Our call pattern is time tested and when combined with a professional approach, separates the slow-payers (accounts that require motivation) from the non-payers (accounts that may require legal action), without alienating the debtor.
Through years of experience, our collectors have acquired significant investigative and analytical skills, enabling them to uncover pertinent financial information required to assess the feasibility of legal action. The information obtained also enables us to bring the file to a logical conclusion expeditiously and at the lowest possible cost.
In addition, Credifax reports all debts to Canada's two credit bureau reporting agencies. Equifax and TransUnion have secured millions of bits of information on millions of Canadian subjects. Although the credit bureaus obtain information from similar sources, it is important to note that not all agencies, banks, or credit card companies report to both.
The benefits of these relationships are immeasurable to Credifax and in turn, to you, our valued client. These affiliations allow Credifax access to powerful informational credit tools and resources, through various sites and reports. It also enables Credifax to report your delinquent, charged off accounts, balances and histories, to both credit bureaus. This is a powerful collection tool, providing additional leverage to maximize recovery, as well as a service to other credit grantors that may be considering doing business with your customer. This feature is just one of the many tremendous assets available to you for every account placed with Credifax.
Pricing for the full collection program is based on a percentage of recovery of an account (dollars paid and/or are goods returned). The average commission rate paid by clients is approximately 15% of the dollars recovered however, actual rates will vary based on the type of the account -- commercial or consumer. Inherently, consumer debts tend to be more difficult to collect, as consumers have fewer liquid assets and fixed financial resources. Consequently, contingency commission rates are higher than equivalent commercial rate structure. In addition, outstanding balances on consumer accounts tend to be smaller, yet still require the same amount of effort to recover delinquent balances.
Explanation of Collection Situations
That Can Lead To Disputes Over Commission
Recognizing that as a collection agent we do not receive commission unless there is a result, there are certain situations that should be clarified in advance of utilising our collection services:
- A "result" means money paid to CREDIFAX, money paid to you, money picked up by your office, goods returned (if you agree in advance to accept them) or credits issued due to reconciliation of your accounting after our involvement.
- Our involvement starts from the moment you authorize us to open the claim for collection. Once a claim has been opened, any "result" will generate a commission payable to CREDIFAX.
- Returned goods and credits satisfying all or part of the claim are charged at half the regular commission rate.
- Occasionally large claims or bulk listings qualify for special rates, but only if the rate has been negotiated before the claim is opened.
- The time or effort invested by CREDIFAX is not a factor in justifying our commission. You cannot ask us to forgive part of our commission on the "easy" ones any more than we can ask for higher commission on the long and difficult collections. If you choose to communicate with the debtor, it will in no way suggests that CREDIFAX was ineffective and our full commission shall be payable on any result achieved. A suddenly co-operative debtor is proof of our effectiveness!
- CREDIFAX collectors adhere to a strict code of conduct at all times. Complaints from disgruntled debtors shall not be deemed justification for refusing to pay commission on a result occurring after the claim is opened.
- You may withdraw the claim at any time for any reason after giving it to CREDIFAX as long as you pay us commission on the entire claim, in order to discourage negotiated deals with debtors without our knowledge. If you place a claim in error and wish to withdraw it, you are still responsible for the entire commission although we may, at our discretion, make concessions where we see fit to do so.