Credit Today is the fastest growing publication in the credit field, favored by more and more top credit executives. We cover the world of business, or trade credit, with concise, yet in-depth, reporting. We also publish the most in-depth salary survey in the industry, covering all major credit positions.Credit Today is the fastest growing publication in the credit field, favored by more and more top credit executives. We cover the world of business, or trade credit, with concise, yet in-depth, reporting. We also publish the most in-depth salary survey in the industry, covering all major credit positions.   
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Home | Tip of the Week | Avoiding Disputes: Eight Clauses to Include i . . . Search 
CreditPoint Software
Avoiding Disputes: Eight Clauses to Include in a Contract With Your Collection Agency

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"I sent you 15 accounts almost five months ago, and I haven't heard a word from you since! What's going on?"

Credit Manager Alec Tremble was on the phone to Mike Garth, owner and operator of Garth Collections. Alec was feeling a little chagrined that he hadn't followed up on these delinquent accounts sooner, and he was taking it out on Garth.

We're working on them," Garth replied, "but we haven't collected anything yet."

"And it doesn't sound like you're going to," Alec snapped. "Look, I want you to gather up everything I gave you and send it back to me today. It doesn't appear to me that you're up to this kind of work."

"I'll do as you say, Mr. Tremble," Garth replied stiffly. "But first you're going to have to give me a written agreement to protect our fees."

"Fees for what?" Alex demanded. "You haven't collected any money!"

"We've done a considerable amount of work," insisted Garth. "If you're going to take these accounts and turn them over to another agency, we have no objection to that--just so long as you pay us our fee on any amount that's collected. That's what we'll have to have in writing.

"As an alternative," Garth continued, "you can pay us an hourly fee on the work we've done."

"And I say the work you've done--if there was any work--is worth nothing," Alec snarled. "And that's what I'm paying you--nothing."

Will Alec have to pay?

Click on "next" below for the decision.




Next >>


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