Collection Agency Offers Transparency into Collection Industry

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June 18, 2015 by Lisa B

It’s Throwback Thursday. Today’s blog was written by Ed Cox. Ed was president and owner of United Credit Service, Inc. (and father of our current vice-president and co-owner Jim Cox) from 1974 until his passing in 1997.

During the mid-1980’s, Ed sent out communiqués as a way to inform others about the collection industry and how his agency worked within it.

As part of our 65th anniversary celebration, we are going to honor our past president and mentor by posting some of these communiqués.

The following is the premier announcement, describing what he was trying to accomplish. Remember, this was written 30 years ago in 1985.

Attention Credit Grantor,

It was in 1981, that AT&T ran an institutional type commercial on television. The message was brief and to the point. “The system is the solution.” They were referring to the telephone system. But, we believe a good system can solve any problem.

That same year, United Credit Service, Inc. began development and programming of an in-house, computerized, paperless collection system. That system, the first of its kind in the state of Wisconsin, is alive and well today, solving the problem of paper handling and account maintenance. The increase in efficiency definitely reflects in the service we provide to our customers.

We have learned that when ten different salesmen state that their company is computerized, that single statement can and does have ten different meanings. It is up to you to interpret what the salesman is saying. For this reason, we intend to use the resources at our disposal to provide you with a “window” in to the collection industry.

This “window” will take the form of a bulletin to be sent approximately every two months. We will attempt to discuss, openly and as honestly as possible, subjects that you have not previously been exposed to, such as:
• Why collection agencies charge so much.
• How collection agencies transfer accounts and the financial arrangement between them.
• The advantages of using a collection agency as opposed to an attorney.
• How a collector skip traces, and more…

If you have a subject that you would like us to address in these bulletins, send it to us in the enclosed envelope. You need not sign your name. If you would like other names added to our mailing list, or if you want your name removed, you may also use the envelope for that purpose.

We offer the following words of wisdom from a 1985 AT&T commercials, “Everybody says they can do it cheaper—nobody say they can do it better—we say cheaper isn’t better.”

It is our desire, thru the preparation of these bulletins, to provide you with additional information that you may use to distinguish between “cheaper” and “just plain cheap.”

Collection News Bulletin / Volume 1 No 1

Licensing Collection Agencies

Did you know that in the state of Wisconsin, to collect money for others, you must either be an attorney or you must obtain a collection agency license from the Wisconsin Banking Department? If a person is of reasonably good moral character, has never committed a felony, and has never gone bankrupt, he should be able to obtain a license. The agency operator is also required to provide a bond. The amount of the bond is determined by the commissioner of banking based on the agency’s volume. As the agency increases in size, the bonding requirements become greater. There is apparently no limit to the size of the bond that may be required.

The license is not the only one required. Any employee who goes out on the street to collect money or solicit accounts, must carry a license. Therefore, the next time a collection agency representative calls upon you, surprise him, ask to see his solicitor’s license. This requirement exits for your protection.

Founded in 1950, United Credit Service, Inc. is a full service, licensed revenue cycle management and debt collection agency in Wisconsin providing effective, customized one on one management and recovery solutions for our business partners. Visit our website at, call 877-723-2902 or check out our YouTube video.


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