Debt Collection Process
We are a very active collection agency. Magic doesn’t collect bills. Many calls and carefully worded letters are needed to get the job done. We mail many letters to debtors and these letters serve an important function, but they are not the focal point of our collection effort. We spend a lot of time talking to the debtors. We talk to them so we can remove the emotional barrier many of them have established. We are trained to do just that and it makes us better bill collectors. That is a major factor in our high collection ratio.
Our debtor contacts are friendly and helpful. Because we report to credit bureaus and litigate, we have real consequences to use if a bill is not paid and don’t have to rely on false threats. We are guided by the knowledge that you will never win an argument and get paid outside of court. Here is the general sequence we follow in our collection procedure:
- Initial letter mailed along with bill copy
- Phone contact seeking specific payment date and amount
- Increasingly frequent calls made to deal with broken promises
- Letter mailed: Pay to avoid Credit Bureau reporting
- Call: Pay over phone or fax to avoid Credit Bureau reporting
- Credit Bureau Report Notice is mailed
- Last chance call to avoid litigation
- Suit Notice is mailed
- Claim is forwarded to an Attorney
Our clients are informed of all payments and payment promises. No litigation occurs without the expressed approval of our clients. Our computer system is designed to contact each debtor prior to a promised payment and, as required, on the day of the promised payment. In addition, the debtor is called if payment has not been received within 1 week. In addition, a reminder notice is mailed to the debtor who is late with a payment. In working with debtors, it is sometimes necessary to call them several days in a row or even several times in a day. Our system handles these situations smoothly.