Debt Collection FAQ
Fees and Pricing
Q: How much does Empire charge?
Empire works on contingency. The fee is [20% to 33%] of the amount collected, depending on the age, size and number of accounts. There is no upfront cost for standard collection. If nothing is collected, the client owes nothing.
Q: Are there upfront costs or hidden fees?
No. Standard collection has no upfront cost, no sign-up fee and no hidden charges. The only possible extra cost is court filing fees, and only if the client chooses to take legal action.
Q: What happens if Empire does not collect?
The client pays nothing. Under Empire’s No Recovery, No Fee model, Empire is paid only from money it actually recovers. If the account cannot be collected, Empire closes the case at no cost.
Q: Who pays legal costs if a lawsuit is needed?
A lawsuit is always the client’s choice. If the client chooses to sue, the client pays upfront court costs, such as filing and service fees. These typically start at [$1,000] and depend on the debtor’s state. These costs can be added to the amount claimed in the lawsuit.
How the Collection Process Works
Q: What happens after an account is sent to Empire?
An Empire specialist reviews the account, confirms the details and starts contacting the debtor right away. Many accounts are resolved in this first phase. The client receives updates and can track progress through the online client portal.
Q: What are the three phases of collection?
Phase 1 is Direct Collection: letters, phone calls, email and text messages. Phase 2 is Attorney Correspondence: a formal demand from a debt collection attorney in the debtor’s state, and possible credit reporting. Phase 3 is Litigation and Judgment, only if the client chooses.
Q: How does Empire contact debtors?
Empire uses letters, phone calls, voicemail, email and text messages, and makes daily contact attempts during the first 60 days. Skip tracing tools help locate debtors who have moved or changed numbers. All outreach follows federal and state collection laws.
Q: Will collections hurt the client's customer relationships?
Empire’s collectors are professional and firm, not aggressive. Outreach usually starts with letters and calls and escalates only if needed. Clients can ask for a softer or more assertive approach, depending on the relationship.
Q: Does Empire report debts to the credit bureaus?
In Phase 2, Empire may report an unpaid account to the credit bureaus where the law allows. Credit reporting often motivates debtors to pay, because an open collection account can affect their ability to get credit.
Timelines and Results
Q: How long does debt collection take?
Some accounts are paid the same day they are placed. Others take weeks or months, especially if legal action is needed. Timing depends on the age of the debt, the debtor’s situation and what has already been tried. Empire keeps working the account for as long as the law allows.
Q: What is Empire's success rate?
Empire has an 82% success rate on business-to-business (B2B) debts. Results are best when accounts are placed early. Empire’s data shows success rates of about 94% for debts placed after one month, 85% after two months and 74% after three months.
Q: When should an unpaid invoice go to collections?
The sooner, the better. Collection rates drop with every month an invoice stays unpaid. Empire recommends sending an account to collections once it is 90 days past due, or sooner if the customer has stopped responding.
Q: Is there a time limit to collect a debt?
Yes. Each state has a statute of limitations, usually three to six years, and longer in some cases, depending on the state and type of debt. After it expires, a lawsuit is no longer possible. Placing accounts early keeps all options open.
Which Debts Empire Can Collect
Q: What types of debt does Empire collect?
Empire collects commercial (B2B) debts, small business invoices, medical bills, utility accounts, membership and subscription dues, defaulted loans and promissory notes, court judgments and international debts.
Q: Can Empire collect from another business?
Yes. Commercial (business-to-business) collection is Empire’s core service. Empire finds the right contact, such as the owner or the accounts payable team, and works the account until it is paid or closed.
Q: Does Empire collect outside New York?
Yes. Empire is based in Lindenhurst, New York, and collects in all 50 states through a network of [400+] debt collection attorneys and agencies nationwide.
Q: Can Empire collect debts from other countries?
Yes. Empire’s international collection service recovers debts owed by businesses and individuals outside the United States, using local partners who know each country’s laws and practices.
Q: Can Empire collect on a court judgment?
Yes. If a client already has a court judgment, Empire can locate the debtor’s assets and enforce the judgment through methods such as wage garnishment, bank levies and property liens, where the law allows.
Legal Action and Compliance
Q: Is Empire licensed?
Yes. Empire Credit & Collection is licensed and bonded (NMLS ID [NMLS ID]) and is BBB accredited with an [BBB RATING] rating.
Q: Does Empire follow debt collection laws?
Yes. Empire follows the Fair Debt Collection Practices Act (FDCPA), Regulation F and all state collection laws. Every collector is trained to be professional and respectful with debtors.
Q: How does Empire handle medical debt?
Empire follows HIPAA privacy requirements and understands insurance and patient-responsibility balances. Outreach to patients is respectful and compliant with federal and state medical debt rules.
Getting Started and Getting Paid
Q: How do I send an account to Empire?
Request a free quote online, submit an account through the Submit an Account page, or call 877-659-5986. Setup takes only a few minutes, and collection starts right away.
Q: What information does Empire need?
The debtor’s name, address, phone numbers and email, the amount owed, and copies of invoices, contracts or other agreements. Notes on past collection attempts also help. More detail usually means faster results.
Q: How and when do clients get paid?
Once collected funds clear, Empire sends payment to the client every month, around the 1st, by check or ACH (direct deposit).
Q: Can clients track their accounts online?
Yes. Clients can log in to the Empire client portal at any time to see account status and payment activity.
