Collection Agency Fees ➡️ How much do debt collectors charge uk❓

'What is the price or commission rate for collecting outstanding debts?’ is one of the most commonly asked questions when considering whether to instruct a debt collection agency.

Many debt collection agencies avoid addressing pricing clearly. Some do not want competitors to know their rates. Others fear that transparency may deter potential clients. In reality, failing to address pricing upfront can create doubt and damage trust.

At Athena Collections, transparency is a core value. We believe clients should understand how debt collection pricing works before making a decision.

Below we have highlighted the key points, followed by a clear explanation of how our pricing works in practice.

You Get What You Pay For

Price alone should never be the deciding factor when choosing a debt collection agency.

Low cost does not always mean good value, and high cost does not automatically mean better service. We strongly recommend carrying out due diligence before instructing any agency, including reviewing independent feedback and client reviews.

As the saying goes, pay peanuts, get monkeys.

Independent reviews often provide the clearest insight into service quality, communication, and results.

Why There Is No “One Size Fits All” Rate

We now address the elephant in the room.

In debt collection, a one size fits all pricing model rarely makes sense. Be cautious of any agency offering a flat commission rate across all debts.

A flat rate suggests that the same level of effort is applied whether a debt is £1,000 or £100,000, recent or several years old. This raises an important question around incentive and fair exchange.

For example, if an agency charged 10 percent across the board, would you be comfortable paying £100 commission on a £1,000 debt and £10,000 commission on a £100,000 debt for the same level of service?

We believe commission should reflect effort, complexity, risk, and expertise.

Upfront Fees and Subscriptions

Some debt collection agencies charge upfront fees, onboarding costs, administration charges, or monthly or annual subscriptions.

Our view is simple. Once an agency has been paid in advance, there is far less incentive to actively pursue recovery. While some activity may be undertaken to demonstrate effort, the motivation to achieve a successful outcome is reduced.

For this reason, Athena Collections does not charge upfront fees for standard debt collection instructions.

Minimum Instruction Threshold

Our standard minimum debt threshold is £1,000.

If we agree to accept a debt below £1,000, a one-off handling fee will apply in addition to commission. This covers administrative costs such as case setup and client due diligence, which are unlikely to be covered by commission alone on lower-value debts, even if recovery is successful.

Commission on Actual Recoveries

Some agencies charge their full commission even when only part of a debt is recovered.

At Athena Collections, commission is only applied to monies actually collected, at the agreed rate.

How Our Commission Rates Are Set

Every case is assessed on its own merits.

Commission rates offered by Athena Collections depend on several factors, including:

• Age of the debt
• Size of the balance
• Volume of debts
• Type of debt, including B2B or B2C
• Stage of recovery, including post-judgment
• Likelihood of recovery

For debts in England and Wales, commission typically ranges from as low as 5 percent up to 25 percent, depending on the above factors.

As a general rule:

• Larger debts attract lower commission rates
• Smaller debts attract higher commission rates
• Older debts attract higher commission rates
• Debts passed to us earlier attract lower commission rates
• Higher volumes allow for more competitive pricing

International debt collection commissions typically range from 25 percent to 40 percent, depending on the country and enforcement environment.

We do not believe a £100,000 debt that is 30 days old should attract the same commission as a £1,000 debt that is two years old.

Are There Any Additional Costs?

Potentially, but never without your consent.

In the first instance, we will attempt to collect your debt with no additional costs beyond commission. If pre-litigation efforts are exhausted, we will report back to you and clearly outline your options, which may include:

• Writing off the debt
• Taking legal or enforcement action
• Commencing insolvency proceedings
• Negotiating a settlement

Any additional costs will be explained in advance, allowing you to make an informed decision. No further action is taken unless you explicitly instruct us to proceed.

This ensures you remain in control at every stage of the process.

Fair, Transparent, and Competitive

We believe the value we provide is exceptional. At the same time, we aim to remain fair, competitive, and commercially realistic while running a sustainable business.

If you are not receiving the level of service you expect from your current debt collection agency, we would welcome the opportunity to benchmark ourselves against your existing provider.

Debt Recovery for Business owners...

Debt recovery may not be high up on the list of things to do of a busy company. Sometimes your business may lack the time or the staff to proactively follow-up late payers, and this can have a knock-on effect to your overall cash flow. This is exactly why our company was established; by providing you with our debt recovery services we essentially become an extension of your business, saving you valuable personnel time and money.

We also appreciate that it is of paramount importance for every business to maintain favourable client relations and therefore we utilise professional debt recovery methods that are aimed at resolving matters swiftly and amicably in order to maintain your good standing with your clients.

We can seamlessly escalate your unpaid accounts with the assistance of our highly professional debt recovery service. With our knowledge and extensive experience in the industry, all your cash flow problems are going to become a thing of the past.

Our debt recovery services are customised to each company's requirements; therefore, we can give you the options and together we develop a plan on how to approach the debtors.

We are able to manage your accounts receivable functions as a one-off project, partially or fully. Together, we can identify which part and at what stage you would like us to outsource the accounts receivable procedure. Our company's commission rates are low based on monies recovered, as well as the stage at which the account is given to us. The sooner the problem is passed on to us, the higher the chance of collection and lower our commission will be. It is as simple as that.

The pre-legal debt recovery services are developed to increase debt collections without the need to take legal action in any form; therefore, not having to instruct lawyers who will charge a fee by the hour.

Although our proactive approach to debt recovery usually achieves the desired results, we always aim to be open and transparent about our intentions but unfortunately, no matter what they say, this does not always happen. Debtors may not pay for a plethora of reasons, such as insolvency, not having received the invoice, the debt being disputed, cash flow being tight, their circumstances have recently changed, and much more.

Our company will establish at the earliest point whether or not the debtor is willing to pay, and will inform you of this fact allowing you to make a sensible decision.

There are numerous options we can offer at this point, all of which are explained including the pros and cons of each option; therefore, you can be clear of the procedure to follow.

If you can give us parameters, we are prepared to work within those to collect the outstanding amounts on your behalf.

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Call Athena Collections for Commercial Debt Collection Pricing

Commercial Debt Collection Pricing call Athena Collections on 0203 865 9319 or use our simple online contact form. Our experienced Debt Recovery Team can assist you with any Pricing Commercial Debt questions, so please do not hesitate to contact our team on 0203 865 9319.

Pricing

Debt Collection Pricing

So, just to be upfront and to clarify...

No Collection, No Commission

No Contracts to Sign

No Upfront Payments * (see below)

No Monthly or Annual fees

Commission Rate Agreed Upfront

Commission Rates From 5% (Lowest Industry Standards)

No Additional Costs Unless Approved By You