2nd Placement Accounts

First Recovery Solutions is very willing to take accounts that have been returned to the original creditor after initially being listed with a different collection agency.  We view 2nd placement accounts as our opportunity to showcase our successful debt collection processes that get past due accounts paid in full.  Generally speaking, a consumer’s financial situation is cyclical. While their finances may be poor at one time, they may be on more stable ground at other times.  At First Recovery Solutions, we never know when we may connect with a consumer 'at just the right time' and be able to assist them in resolving their debt situation.  That is why we approach every call as an opportunity.

About 2nd Placement Accounts
Known in the collection industry as ‘2nd placement accounts’, these types of accounts are usually seen as less desirable collection accounts due to their age and usually the fact that the consumer, patient, or guarantor, most likely knows that the account exists but does not have the means to pay or wishes not to pay.

Another variable that can lead to an account being termed ‘uncollectable’ is losing track of the consumer’s location. Consumers will move or change phone numbers making them nearly impossible to contact, which means more work for the agency trying to relocate the consumer.

There are legitimate reasons for returning an account to a creditor, certain instances of the consumer passing away or filing bankruptcy can make an account uncollectable.

Because of the difficulty that surrounds the collection of these types of accounts, collection agencies will call them ‘uncollectable’ and return them to the original creditor or the original creditor requests that the accounts be returned after a period of latency.

Once an account is returned to the original creditor, that creditor has no choice but to sit on the account or refer it to another collection agency, thus the term ‘2nd placement’.