Debt collection agency vs. Collection law firm

Are you having people who owe you different amounts? What are you doing to manage it? What are the ways you have employed to collect the amounts? In such a case, you have a chance to look for a debt collection agency, or even the collection law firm can help you. In terms of debt collection, both the firms work with a similar aim. Also, both firms fall under the regulation of a single act. No doubt, the functions of both firms are not having any different. But the functionality holds a major difference among the two firms. If you owe some debt amounts, you need to know about the similarities, limitations, and contract between both the firms. Before reaching a decision, you can research about both firms online on famous blogs like HuffPost.

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  • Collection of amount

When talking about the amount of collection, there is a minimal range of amount which is applicable in both the firms. In several agencies available for debt collection, a minimum amount is up to $500. On the other hand, the collection law firms don’t accept an amount which is ranging lower to $1,000. With the help of hiring a collection agency or a debt collection agency, you need to abide by the rules of account with minimal amounts.

  • Charges or fees

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Often, when you seek help from a firm or hire an agency, it does come with a charge or fees. In context with this content, debt collection agencies hold a charge which one needs to pay to avail of all of the services by them. When talking about the fee, it depends upon the workload which is being taken by the agency. In normal cases, the creditor is liable to pay the charges, which ranges in 35-50% of the total debt amount. If you’re relying upon turning into a collection law firm, the debt will be ranging in a higher amount.

In the collection law firms, the fees remain pre-determined, which will range between 25 to 30%. It gives two options of payment to the creditor. One is by charging the number of fees upon the debtor for suing purposes. Or the creditor takes the responsibility to pay the fees. Usually, there is no fee applicable until a certain amount of debt is collected.

  • Time of debt collection

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What is the first thing which you ask from a debt collection agency or a collection law firm in context with receiving your money? You ask- what is the time it will take to get your money back? Correct? Everyone thinks like this only when they’re waiting to receive their money. The agencies do follow a long process consuming a long time to get the money back. The agencies start by contacting the person who owes you money. And then the further procedure takes place.

In the case of collection law firms, you get a chance to avail back your money quickly. Yes, the law firms are faster than any debt collection agency. The law firm sues the person owing you the amount to get the repayment done for the debt. As a debtor, it becomes easy to avoid the person asking for a debt amount.

  • What action do the agency and firm take!

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When talking about both firms, their actions are not the same. In times of collecting debt, the agencies and firms follow a different procedure to get your debt amount back. The collection agencies rely upon contacting the person who is liable to pay your money back either by sending emails, making calls, or other methods. If they don’t receive any response from the debtor, they shift on the next step and call the collection law firms.

Collection law firms are something that can drag your case in front of the court. The firms submit all the relevant debt collection documents along with contacting the debtor with the notice of the case being held up in the court soon. In most cases, it goes against the will of the debtor. After the court shares a judgment, there is no option left with the debtor, and the firm takes all the necessary steps to recover the debt amount.


Before reaching to a certain decision, you need to choose whether it is the debt collection agency that is going to help you. Or think whether the case is complicated, which you need to take up to the collection law firm. Firstly, you can try contacting the debtor with your ways. If things don’t get resolved in a few months, it is better to hire a collection law firm or a debt collection agency that can help you out. And if confused, which option is better for you. Contact both the debt collection agency and the collection law firm. By talking with the authorities, you can evaluate the sensitivity of your case.

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