ACA International – The Association for Credit and Collection Professionals, has developed the Starting and Managing a Collection Agency document to assist professionals interested in starting and managing their own collection agency.
After reviewing this information, ACA encourages you to consult with your own attorney and accountant to see what steps and resources you will need to get your agency up and running. This information is not intended as legal advice and may not be relied upon as legal advice.
- What is a debt collection?
- Establishing a collection service
- Do you understand, and are you willing to study, the mechanics of the credit industry?
- Do you have sufficient start-up capital to operate the business until it becomes profitable?
- Will you be able to gain support in the business and professional community?
- Do you have the patience and confidence necessary to collect from consumers?
- Are you familiar with federal laws governing collections?
- Gramm-Leach-Bliley Act (GLBA)
- Can you meet the requirements of your state?
- Are you willing to spend a minimum of 10 to 12 hours a day, six days a week, with the business?
- Collection and record keeping
- Solicitation of accounts
- Purchasing supplies
- Insurance requirements
- Legal assistance
- Selecting a location
- Choosing a name
- Buying a collection firm
- Valuing a collection company
- Joining a professional association
- A growing business