How to Choose a Collection Agency for Your College or University

Your collection agency speaks for your school to former students, and it holds their personal data. Choose it the way you'd choose any vendor with that much access. Here's what to check, and how Key 2 Recovery, which has collected for colleges and universities since 2010, answers each point.

1. Licensing in every state

Former students move. Ask whether the agency is licensed or registered in every state that requires it, not just yours.

Key 2: licensed to collect nationwide, licensed or registered in every state that requires it. See our licenses.

2. Data security

Student files can include Social Security numbers and dates of birth. Ask for a current SOC 2 Type 2 report, and whether card payments are PCI DSS compliant.

Key 2: SOC 2 Type 2 audited (Security criteria, no exceptions noted) and PCI DSS v4.0.1 compliant. We keep only a payment token and the last four card digits. Our audit documents are available for vendor review.

3. How your students are treated

A former student who has a bad experience with an agency often blames the school. Ask how calls are monitored, how disputes are handled, and which rules the staff are trained on.

Key 2: calls are monitored and recorded. We follow the FDCPA, Regulation F and the ACA International Code of Ethics. Students can check that a call, letter or text really came from us on our Is Key 2 Recovery legitimate? page.

4. Which accounts they'll work

Some agencies only work recent, large balances. Ask whether they'll take old and small accounts, and accounts another agency has already worked.

Key 2: we work every account you send, whatever its age or size, and we can work alongside the agency you use now.

5. Reporting and remittance

Ask how often you'll be paid and get reports, and whether your staff can look up an account themselves.

Key 2: a client portal with every account, payment, note and call recording, open 24/7. Reports are emailed to you automatically, and reporting and payments can be as often as daily.

6. Fees

Ask whether there are upfront, setup or per-account fees, and whether the rate changes with account age or balance.

Key 2: contingency fee only, with no upfront or per-account fee. How collection agency fees work.

7. Higher education experience

Ask how long the agency has worked with schools and which higher education associations it belongs to.

Key 2: collecting for colleges and universities since 2010. Members of COHEAO, NACUBO and ACA International, and of the bursar and business officer associations in New York, Florida, Texas, Ohio and Kentucky (NYSOBBA, FABSAA, THEBO, the Ohio Bursars Association and KASRO).

Questions schools ask