The thrust of MCC’s credit reporting service is to identify an account BEFORE it becomes a problem. 
 
What are your best collection alternatives after an account refuses to pay your invoice(s)? After 30 years of dealing with commercial debtors and non-paying accounts, we can make the following general comments relative to retail debtors:
 
1. Your company is not the only vendor to whom the debtor owes money.
2. The debtor knows that small balance (under $500) claims are the most difficult to collect.
3. The debtor has had prior experience with collection agencies.
4. The debtor will first pay the debt with the highest priority.
5. The debtor knows that if he/she can delay long enough, some
creditors will cease collection action.
6. Certain debtors will only pay on the threat of litigation.
7. Other debtors will pay only if a judgment is rendered against them.
The question for most vendors is what is the most cost-effective method of collection for your specific claim? MCC offers several collection alternatives to our members depending on the nature of the claim: small balance, old claim, NSF check, financially distressed debtor, etc.
 
Pre-Collection Service
Small Balance (under $500) Less Than 6-Months Old
 
The pre-collection service consists of three letters written at 10-day intervals informing the debtor that failure to pay your invoice will be reported to 1,200 companies and may result in referral of their account to a local attorney.
Cost:  $10/three letters - $9 in quantity of 10 or more
 

Certified Letter Service Plus Telephone 

Calls Small Balance More Than 6-Months Old or Larger Balance ($500-$1,000) Claims and NSF Checks
 
The certified letter service (plus telephone contact with your debtor) consists of a certified letter, return receipt requested, followed by several telephone calls to your debtor in order to establish payment amount, date and to provide check clearance services. Should the debtor refuse to accept the certified letter, refuse to speak to our telephone collectors or break a promise to pay, the matter is referred to an attorney in the debtor's city.
Cost:  Commercial Fee Schedule
 

Attorney Referral Service 

Small and Larger Balance Accounts which won’t pay; Large NSF Checks; Stores which may be closing soon; and "special situations"
 
MCC has refined a network of collection attorneys throughout the United States, Canada and the world. We forward your claim to an attorney who is located in the same city or town as your debtor. Our attorneys represent the imminent threat of a lawsuit and are frequently paid upon first demand.
 
The local attorney oftentimes has had previous experience with your debtor, knows his/her payment pattern, may have already been to court with your debtor and knows the local judges. The local attorney also knows the NSF check statutes, state interest laws and post-judgment execution procedures in the debtor's city.
Cost:  Commercial Fee Schedule
MCC Commercial Fee Schedule
Contingency (No Collection - No Fee) Rates

Amount of Claim

Fee
Under $500 30%
$501 - 5000 25%
Above $5000 20%
Litigation Claims
 
Commercial claims on which a lawsuit is filed have an additional 10% fee:  5% non-contingent to the attorney upon filing of the lawsuit, and 5% payable to the attorney upon collection of the claim.  In addition, the creditor is responsible for court costs (usually $200 - $300), which is payable directly to the court and are added to the amount of your claim.  Should you prevail in litigation, you will recover your court costs upon collection of the judgment.  Litigation is initiated only upon your authorization.
 
MCC offers several collection alternatives to your company depending on the nature of your claim: small balance, old claim, NSF check, financially distressed debtor, etc. We would welcome your trying any or all of our services.