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Frequently Asked Questions

Why should I use Red River Collection Company?

Many times, a non-paying customer will pay Red River Collection Company when they wouldn’t pay the creditor. When your customer is contacted by Red River Collection Company they realize their unpaid debt is now serious. Without payment on their debt the customer knows they run the risk they will end up in court with possible garnishment of wages, bank accounts or a lien on property to collect the debt.

How do I know if I need a professional collection service?

You need Red River Collection Company if your customers:

• Do not pay their debt
• Are delinquent by more than 60 days
• Move without notice
• Do not return your phone calls or respond to your mail
• Become confrontational with you when discussing the debt
• Have complaints about your product or service that are unfounded

You also need Red River Collection Company if you:

• Don’t have time during your work day to contact delinquent customers
• Find it uncomfortable talking with customers about paying their debt
• Don’t have the staff or resources to work slow-paying or non-paying accounts
• Want to concentrate on your paying customers

Red River Collection Company is a professional collection service that you can trust. Let us do the collection work for you so you can concentrate on running your business and keep your attention on your paying customers

Our knowledgeable staff will be able to collect your outstanding debt from your slow-pay and no pay customers. We know your time is valuable. By using Red River Collection Company you won’t have to spend your time making collection calls or mailing collection letters.

The other benefit of Red River Collection Company is the fact we can actually save you money! You won’t have to pay salary, taxes or worry about floor space, furniture, equipment or software by hiring an in-house collector. And, remember, we don’t get paid until you get paid!

How much will this cost me?

Not as much as you may think. We offer reasonable contingency fees for our service. Plus, you can enjoy the time-savings you will experience when you don’t have to contact your slow pay or no pay accounts. By using Red River Collection Company you will find you have more time available to spend doing what you do best, concentrating on your paying customers and your business.

Our business is collecting past due and no pay accounts. We are successful when you are successful.

Do you offer a pre-collect service?

Yes. Some businesses like to collect every account possible prior to assigning the account to a conventional collection service. Our pre-collect service offers several advantages:

• Our Pre-Collect Program price can match any budget
• Your customer will receive collection notices about their unpaid debt
• You decide what account(s) you want to place into the Pre-Collect program
• You decide when to stop the Pre-Collect program due to payment or promised payment
• If you stop an account during the Pre-Collect program you owe us nothing more.
• All customer payments are directed back to you for posting/handling.
• After the Pre-Collect program has ended any unpaid account is automatically rolled into in-depth collection work provided by very experienced
   collectors at a very reasonable contingency fee.

Do you charge any monthly, annual, or set-up fees to use your Full service Program?

No.

What happens if my customer is disputing the debt or refuses payment?

By law, if the debt is disputed, we must provide your customer with validation of debt document(s).
The documentation we provide to your customer may be documents you have supplied to our company at the time of account assignment or documents you provide to us after we have made contact with your customer.

If your customer refuses payment our office will attempt to locate assets that may be used during the course of litigation. If assets are located, our office will inform you legal action may become necessary to collect the debt.    We require pre-payment on accounts requiring litigation based on the type of debt, the type of Court the case will be filed in, and the complexity of the case.

What do you do when my customer has moved?

We have a myriad of databases we can access to locate customers that have moved across town or across the nation. Utilization of social security numbers and dates of birth in skip tracing are invaluable when attempting to locate customers who have moved or differentiating between people with common names like “John Smith”, or “Mary Jones”.

We will usually continue our attempts to locate your customer for at least 6 months to a year after the last known address became invalid.

What type of debt do you accept for collection?

Our company represents a wide range of clientele from different industries. We would like to represent you!

Is there a dollar limit on what can be assigned?

No.

When should I assign an account for collection?

The average account is assigned to a collection service 60 days after date of last payment or date of last service.

Keep in mind, statistically, our chance for a successful collection is greatly diminished after the account is one year past due. The longer you wait to assign an account to a professional collection service, the less likely the debt will be paid. Yes, some credit grantors will send out three or four or more billing invoices before starting more aggressive collection efforts. However, while they are doing this, their accounts are rapidly becoming less collectable.

Delinquent Account Depreciation


For example, when the debt is 30 days past due the probability the account will be collected drops to 94%. By 90 days past due the probability the account will be collected drops to 74%. When the debt becomes one year past due, the probability the account will be collected drops to 27%.

It is always a fine line to determine when it is best to turn an account over to Red River Collection Company. Send the account too early and you may be paying out commission to the collection service rather than pocketing the payment as revenue. However, turn the account over too late may make it impossible for the collection service to collect any money and you will end up writing off the debt entirely.

How do you accept account assignments?

Mailing account placements is the most typical form of receiving new work. However, you can send your account placements in Excel or Word and attach them to an email and send the information to redriver@qwestoffice.net. Depending on volume, assigning accounts via modem is also possible with custom programming options available. Web-site submission coming soon.

What do you need to begin work on my past due accounts?

A signed collection agreement.
Your company name, address, fax number, telephone number and a contact name should we have any questions.
Your customer’s information such as name, address, home number, work number, date of birth (if available) and social security number (if available), amount of debt, date of last payment, date of last service and any interest rate to be charged.
Supporting documentation such as an invoice/itemized statement or copy of the returned check.

If the debt stems from a returned check, do you need the original check?

No. You can provide us with a copy of the check (front and back copy, please). Should we need the original check to complete our collection effort with your customer we can ask for the original document as needed. Or, if you prefer, the original check can be provided to us at time of assignment.

What references can you provide?

We have a variety of clients that can provide industry specific references about our collection service. Because our company is so diversified in representing different industries we can usually match our references with the type of industry you are in.

We can inform you what our typical recovery percentage is for a specific industry. Then, for comparison purposes, we can also provide you what the typical recovery percentage is for a collection service located in the Rocky Mountain region.

You may contact the Better Business Bureau for additional insight about our company and you may also contact the Collection Agency Board through the Office of the Attorney General, State of Colorado for information about our operating record as a collection agency licensed in the State of Colorado.

How will I know if you are working my accounts?

We provide, free of charge, quarterly update reports. This report will provide you with detailed information about your account portfolio. A portion of this report reflects the date we were last active on accounts within your portfolio.

In addition you may contact us by telephone or email to inquire about specific accounts.  Upon request we can mail the Update Report to you at no additional cost at any time.

Do you have any limits on the number of accounts assigned?

No.

Can I add your costs of collection to my balance due when I assign the debt for collection?

No. Collection agencies are restricted by law on what can be added to the principal amount of the debt. In Colorado, costs of collection can only be added to the principal amount of the debt under three circumstances.

First, you must have your customer sign a document at time of services being rendered or product sold that informs your customer should they fail to pay their debt as agreed your customer will be responsible for costs of collection. (You should also include court costs, reasonable attorney fees and your interest rate.)

Second, the debt must be litigated. The document your customer originally signed will become an exhibit and attached to the Summons and Complaint.

Third, the Judge presiding over the court case must approve the document your customer signed. If costs of collection is approved we can typically add 30-35% to the balance due. If we are successful in our litigation attempts you will receive the full amount of the awarded costs of collection. We do not take any commission for the recovery of costs of collection!


Helpful Tips

  1. Verify your customer's mailing address, home phone number, employment phone number, and place of employment every time you have contact with them.
  2. Obtain your customer's social security number and date of birth, if at all possible, for your records. Having your customer's social security number and date of birth on record can be invaluable in locating your customer should they move without notice. This information can also be very important when attempting to locate and verify customers with common names like John Smith.
  3. Be suspicious of box numbers used for mailing addresses. Unless your customer is located in a very rural area where mail delivery is not feasible, your customer should always be able to provide you with their street address.
  4. Be watchful for return mail. When you receive return mail, take a moment to call your customer. Is their home telephone working? If the home telephone is disconnected, there may be a more serious problem.
    If you have a work telephone number available, attempt to contact your customer at their place of employment. If both the employment and home telephone numbers are no longer valid, you may have a problem that requires you to assign the account to our collection service for more in-depth work.
  5. Mail a final demand letter. Inform your customer what is due, the minimum payment expected, and when you expect to receive the payment. If you are willing to work out a payment arrangement, inform you customer of this fact.
    Inform your customer about the type of payment you expect, such as a personal check, money order, cashier's check, or cash. Allow your customer a minimum of two weeks to respond to your demand for payment. For medical debt in Colorado, it is legally required that you mail a 30-day notice to the patient prior to assigning the account to an attorney or collection service.