Notification when Sending an Account to a Collection Agency

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Question:

When we close an account due to overdraft, we mail notices to the customer of the amount owed and that the account should be brought to a positive balance to avoid any collection proceedings. Do we need to mail a notification to the account holder when we have sent the account to a collection agency?

Answer:

No. The collection agency should initially contact the customer with a verification of the debt and introduce them to the fact that they are now handling the account. I believe if you sent a last letter, you might invite correspondence from the customer and that may muddy the communications between them and your collection agent. If the customer contacts you and offers $10 a month, you're tying the hands of the collector, as one example.