The Benefit of Sending Small Debts to Debt Collection

By on June 29th, 2014 in Industry Insights
TrueAccord Blog


When we tell our customers that our automated system can work on any size of debt, from $3 and up, we get asked two questions:

  1. Really?!
  2. Why collect on low amounts?

Let’s take care of them one at a time. Why send small debts to debt collection?


Yes, really. Our system is automated enough to allow any debt over $3 and up to be worked on. We don’t care if you have a single $3 debt or a portfolio worth millions, we’re sure we can do something for you. That’s because our system uses a wide portfolio of online data sources instead of buying expensive data from specialized providers, and our highly skilled customer engagement specialists only talk to specific people at specific times – when they are most ready to engage. Our technology allows us to do what we do.

Why Would I Send Small Debts To Debt Collection?

First, we believe everyone should pay what they owe. We give anyone in our system their fair share of warning, time and payment options, but unless they have a valid complaint – we expect them to pay.

Second, some companies’ whole business is for small amounts. If your Average Order Value is under $300, you’re going to have a very difficult time finding a serious service to help you recover what you’re owed. Anyone can send one demand letter and report debtors to credit bureaus for a flat fee, but providing a full service is much more challenging.

Last, TrueAccord was founded to support reinventing Debt Collection and promote conversation and retention. People who owe small amounts are more likely to default not because they don’t have money, but because of a more profound problem with your service or product. That’s why we always recommend that you talk to your customers. This insight, and the ability to bring them back on board, are worth a decent amount of effort.

Bottom Line

There’s a lot of potential in small balances: product and service insight, retention, and of course – recovery. We built our system to be able to deal with these amounts especially for these reasons, and we made it available to all so you, too, can benefit – and get paid more in the process.