Collection agencies like Judgment Collectors need to get paid for what we do. Agencies tend to adopt one of two models: purchasing judgments outright or working on consignment. We prefer the consignment model. Working on consignment boils down to a simple transaction: we provide a service for which we charge a fee.
It is not appropriate to list our fees in a blog post of this nature. Every case is different. But we can tell you how the consignment model works. If you have investigated other judgment collection agencies and are unsatisfied with their offers to purchase your judgment, take a look at the consignment model as an alternative. We think it is the better model.
We Work on Your Behalf
Under the consignment model, you retain ownership of your judgment. Remember that the law considers judgments tangible assets that can be bought or sold. Working on consignment, we do not buy judgments. Instead, we work on behalf of our clients.
If you were to turn a judgment over to us, we would work on that judgment on your behalf. We would become an authorized representative with permission to collect for you. But you still own the judgment. You still retain the legal right to do with it as you choose. We are essentially an independent contractor that manages the actual work of collecting.
We take on the responsibility of making contact with the debtor. If the debtor is trying to hide, we do the work necessary to find him. We also search for assets. All of this is work you could do yourself. Instead, you have hired us to do it for you.
How We Get Paid
The consignment model also dictates how we get paid. We charge a fee for our service, a fee that we discuss with each client prior to assuming collection efforts. However, that fee is not charged upfront. The consignment model dictates that we get paid only after we collect. If we do not collect, we don’t get paid.
We don’t mind this at all. Working on consignment motivates us to do the best possible job. After all, we really don’t want to work for free. We have every incentive to maximize collections in the shortest amount of time.
In terms of the expenses that we incur during the collection process, we cover them ourselves. This is important inasmuch as it means your company doesn’t spend another penny on collection once you turn a case over to us. You and your team get your time back. You also don’t see any further erosion of your revenues due to costly collection efforts.
Selling Is the Other Option
Full disclosure demands that we at least briefly discuss the other option: selling your judgment to a collection agency. Again, this is something we do not get involved with. Yet there are other collection agencies that buy judgments as tangible assets. Once a judgment is bought, it becomes the property of the collection agency. The original judgment creditor no longer has a legal claim to it.
A big disadvantage of this model is that collection agencies tend to pay pennies on the dollar. It is really a low-value proposition and one that we recommend against. Our position is that both judgment creditor and collection agency stand to do better when the consignment model is adopted.
If you would like to know more about what Judgment Collectors does or how we can help you, please don’t hesitate to contact this. We collect judgments in Utah and ten other states. Our service might just be what you need to finally get paid.