Private individuals can hire a commercial collection agency to recover overdue accounts if they are selling on online auction sites. For the most part, commercial collection agencies enjoy collecting funds for business accounts, but at times the hobby accounts are just as lucrative for these establishments.
A common form of collections is done through the commercial collection agency sending out a series of letters that are designed to convince your debtor that instant payment is necessary. This type of collections practice works in a high-percentage of cases, but should never be tried on your own without a collection agency involved.
Collections letters must be carefully worded so that all local, state, and federal anti-harassment rules are followed. If any of these rules are not followed and collections efforts produce money that was taken against the rules, the debtor has an opening to sue for their money back — plus damages.
When hiring your commercial collection agency to take care of your overdue hobby store accounts, find an agency that carries insurance that will cover your time and expenses if any lawsuits result from their actions. Many also believe that the location of the collection agency can bring more results if it is in the same general area as your debtor.