Frequently Asked Questions

Q: Why should we use a collection agency?

A: It is estimated that 4 to 5 percent of a company's billing will go unpaid. New billings occur every month which means this delinquency issue will only continue to rise. The longer an account goes being unpaid the less likely it is to be paid at all. It is much more efficient for you to focus the majority of your internal collection process towards your more current delinquencies at a time when they are more likely to pay. Failing that, you will find an 80/20 rule becoming apparent. 80 percent of your collection efforts spent on working old accounts that will result in only 20 percent of your collection revenue. Get the older accounts out of your billing department's way so they can focus on collecting the more collectible accounts even faster. One promise - If you do nothing about collecting your delinquent accounts - you'll get ...nothing.


Q: What can a collection agency do that we can't?

A: Your customers have been throwing away the notices you mailed and have not responded to contacts you've made. Once they have been contacted by a collection agency, they will realize that you are serious about obtaining your money and have done something about actually getting it. We bring a formality to the collection process. We have access to specialized skiptracing resources to locate customers who have disappeard. We have the ability to list a collection account with the credit bureaus. Everyone is becoming increasingly aware the value of their "credit score" and how it impacts their daily lives. We have the ability to initiate legal action where warranted without involving upfront costs or time on your behalf. 


Q: Isn't it perceived as a "bad business" move to assign accounts to a collection agency? What will my customers think?

A: This is a popular misconception. First off, if a customer is not paying you, they're not really a customer and do you really want them back under these circumstances? Probably not. Actually, with respect to using a collection agency being a negative business move, the reverse is probably more true. Consider the following; There are two like kind businesses in close proximity to each other. You have a membership at Business A where you know you have outstanding late fess. You also have a membership at Business B where you know you have no outstanding late fess. Which business are you most likely to choose to visit? Your customer does want to pay his outstanding obligation but will avoid doing so as a matter of convenience. We can get you paid and get your customer back to you. They will no longer have to avoid you.


Q: What if I just want to be known as a good guy and not pursue collecting those who owe me?

This question needs to be qualified. Are you actually absorbing these amounts yourself as an individual or are you: A. not granting the raises you'd like to because the bottom line does not afford you to? B. handicapping your business by not being able to acquire or update your equipment to stay competitive or efficient? C. thanking your paying customers by passing on your losses to them? We return thousands of dollars to our customers monthly. These newly realized funds can used for positive internal advancement.


Q: At what point should an account be assigned for collection?

A: They can be assigned at any time. Our recommendation is to wait until an account is 90 days delinquent. The longer you wait beyond that - the less likely it is to be collected.



​Q: What do we need to supply you with to assign an account for collection?

A: In general, we need a copy of 1. Any contractual agreement they may have signed. 2. Any application or customer information sheet they have filled out. 3. A ledger which details why they owe what they owe and payments made.


Q: How do we get our accounts to you?

A: The most common method is to fax the information to (808) 678-8488. Some clients mail their information to: A R Recovery Solutions of Hawaii 1001 Kamokila Blvd Ste 311 Kapolei, HI 96707. Large placements can be placed electronically in a file format of Excel or comma delimited text format.


Q: What kind of results should we expect?

A: Let's start by quoting the industry standard. The average "recovery rate" of collection agencies across the country collecting for all types of businesses is in the range of 14% to 18%. The recovery rate is determined by dividing the amount collected by the amount assigned for collection.

We have many clients who experience the benefit of our performance returning them over twice this average and others who are upwards of a 60% recovery. If you can supply the necessary documentation to us and assign your collection accounts within a reasonable time frame, the same type of results can be expected for you as well. 

Ask for a report from your current collection agency and divide the money they have collected by the amount you have assigned. See what kind of recovery rate you're currently receiving. Are you happy with that number? If not - it's time to give us a call.

Q: What is your collection process?

A: Upon receipt on an account, the account is input into our collection software. We use the nationally recognized Interprose/ACE collection software. A notice is immediately sent out and the account is transferred to a collector where phone contact attempts are initiated. If no phone numbers are available, accounts are submitted to any one of a number of commercial skiptracing services we subscribe to. Once contact is made, we identify the reason for non-payment and negotiate a plan to resolve the outstanding debt. The accounts are reported to the credit bureaus as well. In instances where there is no cooperation but there are attachable assets, we will proceed with litigation where warranted. The client recieves notification on each of these instances prior to us initiatiing legal action. No up-front costs are charged to our client and any costs incurred are added to the assigned balance for the debtor to pay. These costs are the first to get paid before any commisisons are paid. 


Q: How long do you attempt to collect?

A: We attempt to collect for as long as the State statutes allow. This could be as long as ten years. If a debtor cannot be located immediately, we continue to submit their information to our skiptracing services. We internally crossmatch any new incoming accounts with our accounts in our database. We continue to report accounts to the credit bureaus for as long as the law allows. Whatever the situation is that caused them to become delinquent, is probably a temporary situation and sooner or later they will be in a position to have to deal with resolving this delinquency. It's our job to make sure this debt doesn't just fall by the wayside over time.



Sometimes we get asked this question because a client wants to relieve their accounts receivable of their delinquent accounts and they are under the impression that they are not allowed to do so until we are done. It is our recommendation to write-off your collection accounts at the time of assignment and post any income collected when it is collected. 100% recovery is not probable and if you don't perform a write-off at the time of assignment, your accounts receivable will only continue to rise. Additionally, the write-off is a great way to identify how much and which accounts have been assigned for collection.


Q: What do we do if our customer contacts us after we have assigned the account for collection?

A: You should refer them directly back to us. Some individuals do not want to have to deal with a collection agency and they will contact you directly. After all, they were successful in not having to pay you for some time. Referring them back to us ensures that there is only one line of communication occurring with your customer and prevents a "he said" / "she said" scenario from unfolding. Offer to take their phone number and any other contact information they are willing to offer and let them know you will have us return their call. All payment activities are updated within our records for credit reporting purposes. Failure to accurately report an account's activity may be in conflict with the Fair Credit Reporting Act. There are instances where accepting a payment may actually jeopardize our collection efforts so please call us first before accepting any payments. 


Q: When do we get our portion?

A: We cut our client checks on the 1st of each month for any collections received during the prior month. If your customer pays us in January, you will receive your check from us for your portion in February. If your customer is on a payment plan with us and pays us monthly, you will receive your portion of their payment on a monthly basis.


Q: What kind of reports do you supply?

A: We can supply a monthly inventory report showing the status of all accounts assigned to date. The inventory report details the date assigned, the amount assigned, total payments made, and the current balance.Along with our monthly check to you will received a statement detailing who paid what, the date they paid, and their outstanding balance.


Q: Why is using a local agency better than a mainland agency?

A: Being local offers us the ability to meet with you and your customers to resolve situations when they arise. We utilize additional local skiptracing resources which specialize in finding local residents. Being local gives us the ability to utilize the court system easily when necessary. Our other local clients can sometimes provide new and updated information on the same customers you have. This is not uncommon as we crossmatch all incoming accounts. National agencies usually have a small sampling of clients in a given area which limits this crossmatching possibility while the majority of our clients are local, increasing the possibility of matches.

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