Profit Recovery develops, implements and manages cost-reduction solutions for FORTUNE 1000 companies, law firms and private equity firms across North America. Its spend management, supplier management and procurement strategies have resulted in over $3 billion in client savings to date.
A debt collection agency like American Profit Recovery is a third-party collector that buys and collects outstanding debts on behalf of credit card, loan, or mortgage companies. Typically, they pay pennies on the dollar (or less) for these debts and then pursue consumers for payment. This type of company is regulated by the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.
If a consumer is sued by American Profit Recovery, it can be a scary experience. But, with a little bit of knowledge and preparation, it is possible to beat these debt collectors at their own game.
How to fight back against American Profit Recovery
If you receive any letters from this collection agency, the best way to respond is with a Debt Validation Letter. This will force them to verify the debt with the original creditor before attempting further contact. If you do not respond, or if you ignore the lawsuit, they can file a judgment against you. This judgment will give them permission to garnish your wages, place liens on property or freeze your bank accounts. By filing an Answer in court before this happens, you can get the case dismissed.
What is a Profit Recovery Audit?
A profit recovery audit firm does a rigorous review of a company’s disbursement records to uncover funds that may be due back to the enterprise as a result of duplicate payments, overpayments or failure to take credits and deductions. Many times, these errors are hidden and difficult to find through normal audit procedures.
Aside from helping clients recoup money, these firms also provide invaluable consulting services on how to prevent these mistakes. Whether it is eliminating PO paper, or standardizing naming conventions for expense categories, preventing these types of errors can dramatically reduce the amount of money a business must recoup from recovery fees and lost discounts.