N.E.I.C. - FAQs

Question: Can I recover the cost of collecting my accounts?

Answer: Yes, you can. The Fair Debt Collection Practices Act, states that it is improper to "...add any interest, fee, charge or expense incidental to the original debt unless such amount is expressly authorized by the agreement creating the debt.". Therefore, it is recommended that you disclose on your paperwork that the customer agrees to pay all collection costs on their account, in the event that the account goes unpaid. HAVE THE CUSTOMER SIGN ALL AGREEMENTS AT THE TIME OF SERVICE. When submitting an account with us, it is important to notify us if this applies.

Question: What information should I have before doing business with a customer?

Answer: You can never have enough information about your customer. To locate a skipped customer, their full name, address, date of birth, and social security number, and place of employment are normally needed. If you can have the customer fill out a standard credit application, then references and relatives can be important information.

Question: Can I collect on really old accounts?

Answer: We can attempt to collect on any account regardless of age, however, there are statutes of limitation - in every state - as to how long legal action can be taken. In Iowa, this is currently 5 years for non-contract debt and 10 years for contracts. The statute of limitation starts at the date of last service or the date of last payment, whichever is more recent. Once a judgment is in place, the judgment is good for 20 years (in Iowa).

Question: When should I place my accounts with you?

Answer: You can send us your accounts right away or whenever it is convenient for you.

Question: How long do you work on my accounts?

Answer: We continue to work your accounts until one of the following occurs: you cancel the account, we have collected the account, or we return the account to you with an explanation (bankruptcy, death, or other uncollectible status).