Bad Debt

Bad Debt

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You might be thinking to yourself, “What exactly is ‘bad debt’ and how is it different from all other forms of debt that eventually reach a collection agency?” Isn’t all debt of this type, at its core, bad debt?

The truth is that not all debts owing are the same. Some debts have been owed to creditors for so long, and have resisted so many different attempts at collection, that they fall into their own special category. Bad debt, therefore, is something of an umbrella term for debts  within the consumer, commercial, and personal sectors that have proven uniquely stubborn and “resistant to resolution” prior to being place with SFS. Clients have either failed to collect these debts themselves after many months and years of trying or they’ve been let down by collection agents employing faulty tools and tactics.

SFS is not only highly-skilled at resolving bad debt–we actually specialize in this area. In-house, we refer to bad debt as “warehoused debt” or “dormant debt.” Sometimes we prefer the more technical-sounding “second/third placement debt,” which makes it clear exactly why these types of debts often end up with SFS: others have had a crack at resolving the debts and come up short.

As we’ve tried to make clear using this website and other resources, SFS is uniquely well-positioned to tackle and resolve bad debt. We’ve noted our use of machine learning technology and high-level analytics, as well as our ability to access an incredible number of databases in every corner of the country. But when it comes to resolving bad debt, SFS has a true “ace in the hole.” We are intimately familiar the nation’s courts, at every level, and have helped organize a network of highly-skilled attorneys who guide us in our efforts to collect debts. This group of professionals helps ensure that every possible avenue is explored and that no (legal) option is left off the table as we endeavor to serve our clients.

Our track record in this area is extremely strong. And again, the collection methods we favor have everything to do with our clients’ needs and objectives. For many, the central question is whether they want a future relationship with the debtor who has left them unpaid for so long. Some clients wish to preserve and extend this relationship. Others wish to sever it as quickly as possible–assuming the debt has been repaid. SFS promises to develop an approach that aligns as closely as possible with each client’s needs, goals and priorities. Click “Our Fees” (below) for insight into payment options. Typically, when it comes to bad debt, there are no up-front fees. SFS retains a modest percentage of the total amount recovered as a service fee.

OUR FEES