Expert debt collection in the United States
Do you have an unpaid invoice from a US customer? We can help you with debt collection in the United States quickly and effectively. Read on to learn how our process works.
How we help you with debt collection in the USA
Oddcoll is an international debt collection platform designed to help businesses recover unpaid invoices worldwide. We work with a top-rated local debt collection agency to ensure your debts are collected within the same country as your debtor.
Getting started is simple:
- Create a free Oddcoll account.
- Upload your unpaid US invoice.
- Our US debt collection partner begins the collection process immediately.
Using a US-based debt collection agency is essential when collecting from an American company. Laws vary from state to state, so local expertise significantly increases your chances of success.
Similar to debt collection in Europe, if legal action is needed, it must be taken in the same state where the debtor is located. Through our partners, we can handle legal debt collection in all 50 US states.
Our debt collection agency in the USA
In the United States, Oddcoll works with a trusted national debt recovery agency specializing in commercial debt collection. Once you upload your invoices to the Oddcoll platform, they will handle the recovery locally.
About our US partner
They are a US debt collection agency operating primarily on a contingency fee basis, meaning they only get paid when you do.
Key facts:
- 99% of revenue comes from successfully recovered debts.
- Focused on North America and US territories.
- Dedicated to maximising client returns and providing excellent customer service.
The debt collection process in the United States
Debt collection in the US typically begins when standard internal recovery efforts have failed. ABSC follows a proven, transparent process:
- Account verification – Reviewing and confirming debt details.
- Research and assessment – Checking company ownership and public records.
- Initial demand – Issuing the first formal payment request.
- Negotiation – Exploring repayment options and resolving disputes.
- Investigation – If the debtor is unresponsive, research licenses, financials, and responsible parties.
- Litigation review – After 90 days of collection work, cases without resolution are evaluated for potential legal action.
Amicable debt collection in the United States
During the amicable stage, the focus is on resolving the matter without legal proceedings. This includes structured follow-ups and payment reminders, transparent communication with both parties, and timely checkpoints to assess debtor responsiveness.
Legal debt collection in the United States
If the case proceeds to court, ABSC’s legal liaisons manage the process through a network of attorneys across all 50 states. Clients benefit from:
- Centralised coordination of legal actions.
- Expert management of each file to reduce administrative workload.
- Full cost monitoring and transparent reporting.
How the legal process works:
- A financial profile of the debtor is prepared.
- If viable, the debtor is given a final chance to settle.
- With client consent, litigation begins.
- Clients are updated throughout, with efforts made to achieve a swift judgment through default or summary motions when possible.
If litigation is not financially worthwhile, ABSC advises against proceeding, ensuring clients make informed decisions.
Recovering legal costs after a successful case
Each US state has its own rules regarding the recovery of interest, penalties, and attorney fees. Generally, the winning party can request the court to include:
- The principal amount owed.
- Additional costs, interest, and reasonable legal fees, provided these are justified and proven to be fair.
Debt collection in the United States: An overview
The history of debt collection in the USA
Historically, debt collection in the United States was harsh and unforgiving. Debtors who failed to repay their loans, and even their families, could be forced into debt slavery until the creditor recovered their losses through labour.
In earlier centuries:
- Unpaid debts could be passed down to the debtor’s heirs.
- Debtor’s prisons were used to hold individuals until their families repaid the debt.
- After these prisons were abolished, foreclosure and asset seizure (known as execution) became common methods for recovering debts.
Fortunately, these practices are now illegal. Modern US debt collection laws protect debtors and regulate how creditors and agencies may act.
Modern debt collection laws in the USA
Today, debt collection in the US is strictly regulated by both federal and state laws. These laws aim to strike a balance between creditor rights and debtor protection.
Key points:
- Each state has its own debt collection laws, which may be stricter than federal rules.
- The stricter law, whether federal or state, always applies.
- Both state and federal governments oversee compliance to prevent abuse or harassment.
First-party vs third-party debt collection
There are two main types of debt collection services in the United States:
- First-party debt collection. This is when the creditor’s own internal department manages the collection. The creditor contacts the debtor directly to recover the outstanding amount. If unsuccessful within a set period, the case is handed to a third-party collection agency.
- Third-party debt collection. A third-party debt collection agency is not a party to the original credit agreement. Creditors turn to these agencies when internal efforts have failed. They usually operate on a contingency-fee basis, meaning the creditor pays nothing upfront and the agency keeps an agreed-upon percentage of the amount successfully recovered. The fee percentage depends on factors such as debt age, type, and the difficulty of collection.
Legal framework: The Fair Debt Collection Practices Act (FDCPA)
In the United States, all third-party debt collectors are regulated by the Fair Debt Collection Practices Act (FDCPA) of 1977. This law defines the actions that collection agencies can and cannot take.
Main FDCPA rules include:
- Contact hours: Collectors may only call between 8 a.m. and 9 p.m.
- Attorney representation: If the debtor has a lawyer, all communication must be directed through that attorney.
- Debt verification: Upon written request, the collector must send proof of the debt within 30 days and pause all contact during that time.
- Privacy protection: Agencies cannot reveal debt details to third parties such as friends or neighbours, except to locate the debtor.
- Identification requirements: Collectors must clearly state their name and agency name, that they are a debt collector, the creditor’s name and address, and the debtor’s right to dispute the debt (Section 809)
These rules ensure transparency, professionalism, and debtor protection in all US debt collection activities.
The Statute of Limitations on debt collection in the USA
The Statute of Limitations sets the maximum period during which a creditor can take legal action to recover a debt. Once this time expires, the debt becomes time-barred, meaning the debtor cannot be sued for it, although the debt may still exist.
Sometimes, debt collectors attempt to reset or extend the limitation period, for example, when a debtor acknowledges the debt or makes a partial payment.
Debt buyers and the sale of unpaid debts in the USA
When collection efforts fail, creditors may sell their debts to third-party debt buyers for a fraction of their original value. This practice allows creditors to:
- Reduce financial losses.
- Receive immediate, though smaller, payment.
- Transfer the risk and workload of collection to another company.
Debt buyers then continue efforts to recover payment. Their business model relies on the possibility that, over time, some debtors may regain the ability to pay, allowing the buyer to earn more than they initially spent on purchasing the debts.
Start your debt collection in the United States today!
At Oddcoll, we can help you with debt collection in the USA.
Upload your claim and get started today, or contact us if you have any questions.