How Much Does a Collection Agency Charge?

Most third-party collection agencies, Key 2 Recovery included, charge a contingency fee: a percentage of the money they actually collect for you. If nothing is collected, you owe nothing.

How a contingency fee works

• You send the agency your past-due accounts.
• The agency contacts the people who owe and takes their payments.
• The agency keeps its percentage and sends you the rest. Some contracts work the other way: you receive every payment and the agency invoices its fee.
• No collection, no fee.

What affects the rate

Rates differ because some accounts take far more work to collect than others. The main factors:

• Age. Older accounts are harder to collect and usually carry a higher rate.
• Balance. A small balance takes almost as much work as a large one.
• Volume. A steady flow of new accounts usually earns a better rate than a one-time batch.
• Earlier attempts. Accounts another agency has already worked are harder, and are usually priced higher.
• Account type. Some debts, like medical bills, come with extra state rules.

Questions to ask before you sign

• Is there any upfront, setup or per-account fee?
• Is the rate the same for every account, or does it change with age or balance?
• Will the agency work every account you send, or only the easy ones?
• How often will you get paid, and how often will you get reports?
• Can you see account activity yourself, any time?
• Is the agency licensed in the states where the people who owe you live, and can it show a current security audit?

How Key 2 Recovery charges

• Contingency fee only. No upfront cost and no per-account fee.
• Our rate is competitive with, and often lower than, what clients pay their current agency.
• We work every account you send, including old and small balances.
• Reporting and payments to you as often as daily, plus a client portal you can check any time.
• Licensed to collect nationwide, SOC 2 Type 2 audited, and PCI DSS v4.0.1 compliant for card payments.

Common questions