Innovative Collection Business Uses Web-Based System to Eliminate Contingency Fees, Collects 'Soft' Debts Quickly

PACIFIC PALISADES, Calif., July 29 /PRNewswire/ -- Organizations that want to pursue delinquent accounts without handing over a portion of the proceeds can now turn to OldDebts.com, an online debt collection service that eliminates the need to pay contingency fees to a traditional collection agency. The flat-fee service personalizes, prints and mails collection letters for as little as $6.95 per debt and optionally reports debtors to the three major credit bureaus, offering a fast and economical method of bringing debtors to heel.

Launched by Fidelity Information Corporation, a fully accredited collection agency, OldDebts.com remains the only collection service to combine the cost benefits of flat-fee pricing with the self-serve efficiencies of the Internet. Clients range from small retail, service and home-based businesses to schools, sororities and fraternities, attorneys, physicians, franchises, associations, and large companies of all kinds.

Direct debt collection: "At any given time we may have a couple hundred customers who have not responded to multiple invoices, and in the past we used a collection service that required a $5,000 minimum," said Pam Brightman, office administrator at Industrial Electric Service in Huntington Beach, CA. "We switched to OldDebts.com in early 2001 because there was no minimum fee and because we can handle all administrative functions online. It's saved us an enormous amount of money, and it has been quite successful in getting delinquent customers to pay up."

Debtors are instructed to pay creditors directly, enabling the individual or organization owed the money to retain complete control. There are no minimum, commission, membership, setup or account fees.

Easy administration: To begin the debt collection process, creditors submit debtor information online to OldDebts.com. Information can be entered manually, uploaded from the creditor's database, or emailed to the service in database form. From that point on, creditors have access to a personal account directory and bookkeeping journal for every debtor account for easy payment tracking and notekeeping. Registration and account access are free.

Multiple letter packages: A one-letter package from OldDebts.com costs $6.95, while progressively demanding four-letter packages range from $5.95 to $16.95 per package depending on the type and quantity ordered. Different packages are available for consumer products and services, judgments, dishonored checks, and commercial debtors. For debtors who have agreed to a payment plan, there is also a $24.95 package that will mail a payment reminder once a month for up to 12 months.

All letters are professionally laser-printed and customized with the debtor's name and debt information. All fees include postage, return envelope, and perforated payment stub.

Credit bureau reporting and other options: In addition to purchasing packages of collection letters, clients can elect to have OldDebts.com report consumer debtors to the Equifax, Experian and TransUnion credit bureaus for $3 per package. Old Debts.com can also make courtesy reminder calls to debtors shortly after the second collection letter is sent ($12 per package); automatically forward letters to a new address if the debtor has moved ($1 per package); and order consumer credit reports that can assist in difficult debt collections ($15 per package).

"OldDebts.com is a fast and inexpensive strategy for weeding out 'soft' debtors from those that may require more traditional and aggressive methods," said Jeff Cronrod, President of Fidelity Information Corporation. "It gives creditors a way to collect debts directly and eliminate the middleman with virtually no administrative overhead, nominal cost, and no need to split the proceeds. These are enormous advantages."

For more information, visit www.OldDebts.com .