---
title: "How to Choose a Debt Collection Agency (2026 Guide)"
canonical: https://debtcollectionagencies.org/guides/how-to-choose-a-debt-collection-agency/
dateModified: 2026-09-11
---

# How to Choose a Debt Collection Agency

Choose a debt collection agency by checking its licensing in your state or country, matching its specialty to your debt type (commercial or consumer), and comparing contingency fees, which typically run 15-30% for commercial debt and 25-40% for consumer debt.

## Is the agency licensed where your debtor is?

Licensing follows the debtor's location, not yours. In the USA, many states require a collection agency license or surety bond. In the UK, consumer collections require FCA authorisation. Check the regulator's own register, not the agency's claim.

## How much do debt collection agencies charge?

Most agencies work on contingency: no collection, no fee. Published rates typically run 15-30% for commercial debt and 25-40% for consumer debt, rising with account age and falling with volume. Some agencies charge flat fees for early-stage demand letters.

## Does the agency handle your debt type?

Commercial (B2B) and consumer collections are different disciplines with different rules. Medical, construction and trade debt each have specialist agencies. Match the specialty listed on the agency's profile to your receivables.