Debt Collection Programs & Pricing

Collection agency contingency fees often range from approximately 20% to 50% of the amount recovered, although pricing varies with account age, previous collection efforts, and the services included. The contingency fee is calculated on recovered dollars rather than the total balance submitted. For example, a 30% contingency fee on a $1,000 recovery would leave $700 for the business before any other applicable charges.

Before choosing a program, confirm any setup fees, additional service charges, and circumstances that change the rate. Comparing the money returned after all fees provides a clearer picture of value than comparing contingency percentages alone.

A letter-only collection program uses a series of written collection notices rather than outbound collection calls. These programs commonly charge an upfront flat fee, allowing the business to retain the payments recovered without a contingency percentage being deducted. The upfront program fee still applies.

IC System’s Recovery Plus offers a correspondence-only first phase that may include letters, emails, and texts, depending on the program. This gives businesses an initial written-outreach option before deciding which eligible unpaid accounts should receive more intensive collection efforts.

A two-phase collection program begins with one level of outreach and provides additional collection services for eligible accounts that remain unpaid. With IC System’s Recovery Plus, Phase One uses written correspondence for a flat fee. The business keeps the payments recovered during that phase without a contingency deduction.

In Phase Two, selected eligible accounts receive more comprehensive collection efforts, including calls and other available services, for an agreed contingency fee. This structure lets businesses begin with correspondence-only outreach and use additional recovery services where needed.