When should I place a new account into collections?

The right time to place a new account into collections is relative to the actions you have take internally to collect. Once all reasonable actions are complete, accounts should be referred immediately. The longer an account sits with no additional effort, the likelihood of recovery is reduced significantly. The collections agency finds that most problems occur when special cases are created for an account and you do not adhere to internal best practices. It is recommended to have an internal procedure in place to review and turn over delinquent accounts within 30 days.

What steps does collections agency take to collect on my accounts?

All accounts will get an initial demand letter, and we will kick off a collection strategy best suited for that account. Uncollected accounts are then reported to the credit bureaus on a monthly basis, up until the statute of limitations. Unpaid accounts are also reviewed for potential legal action. Approved accounts will be sent to outside legal counsel, with the majority of our inventory assigned to a dialer and/or tax campaign for future efforts.

The collections process requires persistent effort over an extended period of time. The majority of consumers placed for collection were either unwilling or unable to pay at the time of placement. Although, many of our efforts are taken in the initial months of placement, some of the results are not realized until more time has passed. As a reminder, the collections agency will only be compensated when we successfully recover your past due accounts.

What is the contingency fee collected?

There are no upfront costs or setup fees to enable the Tenant Debt Collections service or turn over accounts to collections. If no debt is collected, you don’t owe anything. The collections agency works for 40% contingency of any funds recovered. The contingency fee increases to 50% plus court costs should the collections agency recommend, and you agree, to legal proceedings to collect the debt.

What do I need to send a past tenant to collections?

The primary documentation required to place an account is the signed lease agreement, including any renewals, and an accurate, valid tenant ledger. You will also need to provide some key information about the past tenants, such as SSN and date of birth. If you don’t have this information, the account can not be filed.

Additional information, such as an emergency contacts, forwarding address, or employer information, may help to increase your chances of recovery. Other optional supporting documentation include guarantor agreements, tenant release forms, judgment paperwork, detailed invoices, and written correspondence with the past tenant.

Who do I contact regarding questions on my collections accounts?

Please contact SlateHouse for updates about any collections account by emailing support@slatehousegroup.com.

Will collections agency settle my accounts for less than what is owed?

The Tenant Debt Collections feature includes a blanket settlement authority to settle debts for no less than 80% of amount due. It is important to give collectors flexibility to negotiate during a conversation with the past tenant. This helps to increase overall recovery by offering the consumer additional motivation to pay. No further settlements will be taken without your prior written permission.

Can I cancel an account if placed in error?

Yes, a $25 cancellation fee will be charged for accounts that are withdrawn or cancelled after having been placed in collections for more than 5 days. Additionally, the full contingency fee will be due to the collections agency if payments are received against any of the submitted charges within 90 days following cancellation. 

Can I charge the past tenant a collections fee? 

By signing up for this service, you agree to not add collection charges to the account. 

Does the collections agency report to the three major credit bureaus?

Yes. They will report all unpaid collection accounts to the credit bureaus within 90 - 120 days. In order to remain compliant with the Fair Credit Reporting Act (FCRA), collectors are required to give the consumer a minimum of 30 days to dispute the debt or request verification. 

Additionally, they will hold off on credit reporting as an incentive for the past resident to pay their balance in full. If they cannot collect in the first 90 days, they will report the default account to the three major credit bureaus as a continuation of their collection efforts. 

Does it matter if we have submitted the claim for eviction or small claims court?

No, once the eviction or small claims court process is complete, you can turn over the account to the collections agency. Be sure to include any court documents or eviction judgments with your submission.