California Collection Agencies

California collection agencies are a smart business solution when dealing with customers who owe you money won't pay.

California businesses face a number of collections problems. Unpaid bad debt creates negative cash flow for your business.

If your in house collections efforts are not consistent and effective, you lose not only money, but productivity as well, because you're having to dedicate labor time to "chasing after" these delinquent accounts.

To better recover on these past due accounts, many California businesses turn to California collection agencies.

How Can A California Collection Agency Help Me?

A California debt collection agency can help your business collect its bad debts by:

Mail
Typically, collection agencies make use of a number of letters sent to the debtor, called demand letters. These are often very effective in getting the debtor's attention, especially since they're coming from a neutral third party. They're written to remind them of their obligations, and get them to pay or make payment arrangements to satisfy the debt.

Phone
If, after a series of demand letters don't prove effective, a California collection agency will then make phone calls to the debtor.

Legal Options
California debt collection companies often can take legal action, up to and including filing suit, if both the demand letters or phone calls haven't been successful.

California Areas Served

California collection agencies offer coverage statewide, including:

• Los Angeles
• San Diego
• San Jose
• San Francisco
• Long Beach
• Fresno
• Sacramento
• Oakland
• Santa Ana
• Anaheim

Choosing A California Commercial Collection Agency

When choosing a California collection agency, here are a few areas to pay attention to:

Debt Collection Techniques

• ask for sample demand letters that they will be sending to your clients. You want to make sure the language is both strong enough to get their attention, but doesn't alienate your customers. You also want to make sure they abide by the federal Fair Debt Collection Practices Act (FDCPA), and other state collections laws.

  The FDCPA forbids abusive, threatening and obscene language when dealing with debtors, and that they be treated with respect.

• Ask how is debtor information forwarded to the collection agency.
• When and how is collected monies sent to your business.
• How can your business monitor the collections activity.

Company History and Reputation
Ask for references of other similar businesses they've worked with; ask how long they've been in business. Many agencies come and go, so make sure you're dealing with a California collection agency that has stability.

When you're ready to hire a California collection agency, let DebtCollectionSteps.com help you. Fill out the quote form below, and we can refer you to an agency that serves your area.

A Summary of California Collections Laws

• California Collection Laws Interest Rate
  
  Legal: 10%
  Judgment: 10% (Unless otherwise contracted)
  
  
• California Collection Laws Statute Of Limitations (Years)
  
  Open account: Reduced to writing-4
  Open account: No writing-2
  Written Contract: 4
  

  Domestic Judgment: 10 (renewable at 10)
  Foreign Judgment: 10 (commencing with judgment debtor's commencement of CA. residence.)
  
  

• California Collection Laws Bad Check Laws (NSF) (Civil Penalty)
  
  Amount due, treble damages - minimum $100 maximum $1500 per check.
  
  
• California Collection Laws General Garnishment Exemptions
  
  See federal law. Exemptions for necessities of life.



• California Collection Laws Collection Agency Bond & Licensing Rules
  

  
  No license or bond required.

Return to National Collection Agencies from California Collection Agencies.