How much do commercial collection agencies charge?

Updated 2026-10-24

Most U.S. commercial collection agencies charge a contingency fee of about 15% to 50% of the amount they collect, with lower rates for newer and larger debts and higher rates for older or smaller ones. Flat-fee demand letter programs typically cost $10 to $30 per account, and accounts that go to suit usually cost 30% to 40% plus court costs.

Typical contingency rates by age of debt

• Under 90 days past due: about 15–25%
• 90–180 days: about 25%
• 6–12 months: about 25–35%
• Over 12 months: about 35–50%

Rates by balance

Large balances usually earn lower rates. Published examples include around 10% on recoveries over $500,000 and about 15% on $50,000–$500,000, while balances under $5,000 often carry 20–35%.

Flat-fee programs

Some agencies offer a fixed-price letter series for early past-due accounts, typically $10–$30 per account. These work well on fresh invoices but usually involve little or no phone negotiation.

Legal collection costs

When a claim goes to suit, the total contingency rate usually rises to around 30–40%, or a surcharge is added. The creditor typically pays court filing and service costs up front, and some attorneys require a small non-contingent suit fee on risky claims.

Contract terms to check

• Is the fee owed if the debtor pays you directly after placement? (Usually yes.)
• Can you withdraw an account, and what does it cost?
• How often are funds remitted, and is the fee deducted or invoiced?
• Is interest collected billed at a different rate?
• Are there minimum balances or minimum fees?

Our rates

We publish ours, set by the size of the balance: 10% over $500,000, 15% on $50,000–$499,999, 20% on $10,000–$49,999, 25% on $3,000–$9,999 and 30% on $1,000–$2,999. See the full rate card on our pricing page.

Frequently asked questions