VeriCore has achieved

Saving clients

$ 0

ZERO FEE collections to date!

in collection fees

VeriCore has achieved


ZERO FEE collections to date!


Our primary objective is to create a true partnership with our clients.  We both succeed when you have strong in-house processes to help you collect as much as you can on your own.  Why?  Because you’ll be able to identify problem accounts quickly.  While some may think that collection agencies benefit from clients who don’t manage their receivables well, the truth is that we all suffer when follow-ups on receivables fall behind. 

To help you capitalize on as many opportunities as possible, we’ve developed a toolbox of downloads, templates and resources for you and your team.  Feel free to use anything you want or need and let us know if you have any questions or would like help. 



VeriCore has the most robust 10-day demand service of any agency in the country!  We will send your demand via Priority Mail with electronic tracking to confirm receipt as well as emailing the demand to all concerned parties.  For any active client, this 10-Day demand service is free of charge!



Does your credit application have language that allows you to pursue collection fees?  What about a personal guarantee?  Fear not, feel free to download our sample credit application or even better, ask your sales rep and we will be happy to customize one with your company logo and colors at no charge to you.



Minimizing collection issues starts on the front end with an established in-house credit policy.  A good policy maximizes cash flow and minimizes future collection problems. Download our in-house credit policy that is full of sample demand letters and collection call scripts your AR staff can use.



VeriCore has the fastest remittance policy in the industry! We only age a payment 7 calendar days and then remit the following Monday. If you prefer a faster remit, we will happily ACH your remittance directly into your bank account!



The regulation of commercial collection agencies is left up to each individual state.  Using an agency that is not properly licensed can be extremely problematic.  Use our licensing map to click on each state and download the specific rules and regulations for that state; be informed before you hire any agency!



Most debtors go through 3 stages on their downward journey towards insolvency.  It’s critical to recognize the early warning signs so you can act before it’s too late.  Download our “3 Stages of a Debtor” document so you can keep it handy and always watch for those warning signs!

Myth or Fact?

Today, more than ever there are plenty of misconceptions when it comes to using a commercial collection agency. 

At VeriCore, we think it is critically important that any prospective client knows the truth about these common misconceptions so they can make the most informed decision possible. Below we offer you the straight scoop on whether some of these common misconceptions are MYTH or FACT?

MYTH – The vast majority of commercial collection agencies do not require their clients to sign a contract prior to accepting a placement.  That said, depending on the circumstances (volume discounts, etc.), a contract might be warranted and appropriate for both parties.  Just like any contract it is critical that you read the fine print.    If there are penalties involved for cancelling accounts or if the agency wants it in writing that they can keep working your placement in perpetuity you should seriously question if that agency has your best interest in mind.

FACT – The majority of US States do not have laws that prevent you from pursuing collection fees without an agreement.   There are a few states that license Commercial Collection Agencies and allow you to pursue collection fees as long as you have a written agreement in place at the time of service and there are actually only three states where you may not legally pursue collection fees at all.

MYTH – A reputable agency should never charge you anything to cancel an account unless they can illustrate that their efforts have altered the debtor’s position where there is now a high probability that they will pay.  Clients should keep in mind that most agencies work on contingency which means the agency can’t earn their fee if they are not working the account so cancelling an account eliminates their opportunity to earn their fee.  That said you should NEVER pay a cancellation fee to a collection agency unless they can clearly illustrate that their efforts have resulted in a payment or will soon result in a payment. In these cases it is acceptable to work out some form of renumeration with your agency.

See our section above on “contract” as some less reputable agencies will insert unfair language into their contract that legally binds you to a cancellation fee even if the agency has no prospect for payment. 

MYTH – Any agency that asks for more than 30 days to remit your money on successful domestic collections is simply taking advantage of you.   Any agency that collects money should “age” a debtor payment properly prior to remitting those funds to their client but this aging process should take no more than 4‐ 7 business days for any domestic payment (clearing times with Canadian banks can be much longer so this could be an exception to this rule).    In summary there is no reasonable excuse for why a collection agency would need to hold your remittance longer than 3‐4 weeks from the date the debtor paid. See our section above on “contract” as some less reputable agencies will insert unfair language into their contract that legally binds you to a cancellation fee even if the agency has no prospect for payment. 
FACT – Since collection agencies work on a contingency basis, they should be paid a percentage of every dollar they collect on your behalf.  If you have a legitimate reason why you don’t think your agency should get paid on a certain charge that is being added to the account you would need to negotiate that prior to engaging the agency for the account in question. See our section above on “contract” as some less reputable agencies will insert unfair language into their contract that legally binds you to a cancellation fee even if the agency has no prospect for payment. 


There are 20 states that require a commercial collection agency to be licensed and/or bonded in that respective state in order to conduct collection activity and/or the solicitation of clients.  It is critical that prior to engaging a collection agency you make sure they are properly licensed in the state where your customer resides.  Additionally, in certain states, the agency must also be licensed to solicit your business and represent your interests. If your agency is not properly licensed in the state where both you and your customer reside, it could cause legal issues for you as the company that hired said agency. See our section above on “contract” as some less reputable agencies will insert unfair language into their contract that legally binds you to a cancellation fee even if the agency has no prospect for payment

FACT – In most states you may add interest to the balance you place for collections without a prior agreement stating as much.  However, there are 7 states that require you to have a written agreement in place at the time of service if you intend on adding interest to your balance.    Also, it is important to remember that in most cases the max allowed is 18% per annum or 1.5% per month.

FACT ‐ Frequently debtors don’t trust collection agencies and prefer to send the money directly to the client.  The debtor paying the client directly instead of sending the money to the agency has no bearing on whether or not the agency earned their fee.  If a debtor pays the client directly after the collection agency has begun work on the account the agency’s fee was earned and they need to be paid.

MYTH – In order for a collection agency to be properly set up to report debtors to credit reporting agencies, the collection agencies are obligated to report “all” of the debtors to the credit reporting agency and are not allowed to pick and choose which debtor gets reported. In addition, the commercial credit reports are used in a much different way than consumer credit reports and the impact that is achieved by reporting commercial debtors to the credit reporting agencies is significantly less than the impact it has on consumers being reported.
MYTH ‐ The FDCPA specifically protects consumers only.  The FDCPA does not govern any monetary transaction that takes place between two companies.    While many commercial debtors (and believe it or not many attorneys that represent commercial debtors) attempt to cite FDCPA violations, commercial collection agencies are under no restrictions cited by the FDCPA.
FACT – If the entity in question was incorporated, without a signed personal guaranty it would be illegal for a collection agency to pursue that debt.    While it is very frustrating and not at all fair, there are laws in place that govern these actions when the debtor company was organized as a corporation or an LLC and is no longer operating.    The exception to this is the presence of a signed Personal Guaranty or if the original business was created as a partnership or a proprietorship.
FACT – Just because a creditor does not receive a bankruptcy notice doesn’t mean that they were not included in the bankruptcy filing and/or would be included once the oversight was realized.  A debtor company can’t pick and choose which creditors they include on the bankruptcy filing so the mere fact that they filed means they are now under bankruptcy protection laws and within those laws it is illegal for a collection agency to pursue a debt while under bankruptcy protection.

MYTH ‐ Unless you have already had an attorney file the proper paperwork to domesticate
your judgment in the customer’s state you are not able to levy a garnishment. Until your
judgment is domesticated you only have a piece of paper that states you are legally owed money.

Compliance and Licensing

The collections industry has undergone a major transformation in the last 25 years as technology, social standards and collection laws have evolved.

Commercial collections in the 1980’s was like the Wild, Wild West with little to no oversight where agencies operated without any fear of reprisals.  Without internet search engines to assist debtors and clients in researching their rights, many customers were treated poorly as collection agencies operated with impunity.

State and Federal Regulators have since implemented licensing rules meant to protect both debtors and clients from predatory collection agencies, but there are still far too many agencies ignoring these rules and operating illegally.

What should you do? 

Did you know that there are a few states that even require a license for a collection agency to solicit your placements if your company happens to reside in that state?

Most people are familiar with the fact that consumer collection agencies are regulated at the Federal level by the Fair Debt Collection Practices Act (FDCPA) but did you know that the FDCPA doesn’t apply to commercial debt? The regulation of commercial debt is left up to each state (and some cities) and most of the state’s laws vary wildly.

Navigating these requirements isn’t easy, which is why we developed the map below for you.  We highly recommend that you click on any state where your company resides or sells to customers and become familiar with the licensing, bonding and potential penalties enforced by those states.  If your agency is not following the laws of a state, your company could be in jeopardy, so please be informed!

Download the VeriCore Licensing and Bonding Information sheet to see an example of what a fully licensed and bonded agency looks like!

Click on a color shaded State to download additional information

Required for both sales and collection activity

Required for collection activity

No license currently required