No way, says our Listserv! And they offer up many reasons why it's important to stick with your agency once you've turned an account over for collection.

A member of our listserv recently had a situation arise in which a customer that had been placed for collection came back to them directly - instead of their agency - in order to settle. The member wondered if there was some standard protocol in a situation like that and felt she should be able to handle the debt herself. The agency was just about to place the customer into litigation when the customer contacted her to settle.

If this happens, listserv members overwhelmingly advised, the agency should still be left in charge.

First, noted Alan Fluck, of Kenseal Construction Products, "the agency would still be due their fee even if you handle it. The best bet is always to refer any placed account back to the agency working it. Plus, if you don't pay the agency their fee, even if they don't want to try and recover their money, your reputation with agencies could take a hit."

Paul Brunner, C.I.C.P., corporate credit manager at Mitsubishi Electric Automation, Inc., recommended that the customer be firmly reminded that they have little choice but to work with the agency, and reminded the inquirer that "your company is already under contractural obligation to the collection agency."

Perhaps a Gambit Anyway

In addition, noted Bud Wilson, credit manager at Nordyne, Inc., "the customer may be pulling your leg about 'wants to settle,' and it's just another delay tactic. What if the payment bounces? You're back where you started and now even more time has been used in the collection process. You agreed to give it up and pay the collection agency. Let them earn their fee - you'll be glad you did."

This sentiment was echoed several times over by various list members.

The only exception was noted by Julie Osuna, A/R manager at Ossur Americas, Inc., who advised: "the only time I was successful in dealing directly with the debtor was when I demanded payment in full that day (via check by fax). Otherwise, no deal and back to the agency they go."

And she still forwarded the agency their percentage for their efforts.