Credit Collection Agencies

Objective：

The use of a major credit collection agency’s services can sometimes lead to the payment of accounts which a hotel has been unable to collect itself.

Procedure ：

1. Usually, a credit collection agency will send collection letters to customers, without obligation to give them the rights to collect the money. This service usually is provided at a low cost.

2. However, before collection agencies are employed, the terms, conditions and charges should be established to ensure accounts are worth the cost of collections.

3. The Hotel should obtain the District Controller’s approval “in principle” to use a credit collection agency.

4. Accounts should not be passed to a collection agency until they are over 60 days outstanding.

1. Discretion should be used before passing any account to a collection agency (for example, in the case of “sensitive” customers, government departments, etc.).