Does a Lower Contingency Fee Mean More Money in Your Pocket?

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After months of trying — and failing — to successfully collect monies owed by a former customer, chances are it’s time to consult someone with debt collection experience.

Perhaps you’ve done your research: You’ve investigated local firms and agencies, taken notes, and compared fees. You’ve done the math, but have you really worked out the best deal?

When it comes time to outsource your debt collection, you are going to want to determine which firm will help you recover the most monies. While a lower contingency fee — the money your lawyer receives should you win your case — might seem like the best option, it’s not a guarantee you’ll get paid.

Just like no two people are the same, no two collection attorneys are the same. While all collection attorneys may have the same tools and procedures afforded to them, including remedies available to enforce a judgment in New York State, they don’t all think the same. Therefore, creditors who shop for collection attorneys as if commodities may be missing out on huge returns.

When choosing a collection attorney, do your research and:

  • Look for a firm that not only knows, but understands you and your customer’s industry.
  • Select someone local, with experience handling New York businesses.

Bargain hunting may seem like a cost saving initiative, but buyer beware: “You get what you pay for.”

Using a collection attorney who offers a lower contingency fee but fails to deliver, will cost you more than the extra 5 to 10 percent you’d be giving an attorney who can actually deliver.

After all, 75 percent of $50,000.00 ($37,500.00) is a lot more than 80 percent of nothing.

Want to hear our approach to your debt collection issues? Call (212) 686-0100 or email today.

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