Debt Collection Phoenix | Cedar Financial

Recover Your Funds in Phoenix

Local Phoenix debt collection that Puts People First

Despite a growing job market in technology, healthcare and manufacturing, Arizona residents often owe more than they earn, making collections in the Valley of the Sun a slow, difficult and costly process for creditors.

With local experts on your side, recovering your funds is fast and easy.

Cedar Financial offers:

  • Over 30 years of Phoenix debt recovery success
  • Fast, professional dispute resolution tailored to your industry
  • Experienced creditor’s rights attorneys in Phoenix

Whether your debtor is in Maricopa County or elsewhere, we can collect. Consumer or commercial, large or small, we get results.

See why Fortune 500 companies trust us with their accounts in Phoenix.

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Top Challenges in Phoenix Debt Collection

Compliance to Arizona Fair Debt Collection Laws

Compliance can be a complicated matter in the United States, where consumers are protected by a variety of strict federal and state protection laws. Without a trusted, licensed Phoenix collection agency on your side, you could face increased compliance risks, lost funds and costly damages to your reputation.

Phoenix debt collection agencies must adhere to the Arizona state debt collection law in addition to the federal Fair Debt Collection Practices Act (FDCPA). To collect debts in Phoenix, collection agencies must be licensed and bonded.

Arizona law roughly mirrors the FDCPA, with one key difference: it is a criminal statute (Ariz. Code § § 32-1001 to 32-1057).

This means that violation is a class 1 misdemeanor and debtors can report violations of the statute to the local Phoenix or Maricopa county prosecutor. Under the Arizona criminal statute, debtors cannot sue the debt collector for breaking the law; but they can still sue for money damages under the FDCPA.

Cedar Financial is licensed and bonded to collect debts in all 50 U.S. states, including Arizona. As an ACA International accredited agency, we are constantly reviewing the latest state and federal regulations to reduce risks to your business.

Contact us today to protect your business while recovering more funds in Phoenix.

Phoenix Residents Owe More Than They Make

When debt balances surpass income levels, it can be hard for consumers to repay their debts.

With Arizona residents carrying a per capita debt load of over $53,000, creditors may have a harder time recovering what’s owed to them in Phoenix.

According to research from The Ascent, Arizona is 4th on a list of 15 states that have a higher per capita debt balance than per capita income, with personal debt loads nearly $10,000 more than residents’ annual income.

Per capita income Per capita debt balance Difference between per capita income and debt
$43,650 $53,060 ($9,410)

A 2019 WalletHub report ranks Phoenix among the worst of 2,564 U.S. cities rated on the sustainability of residents’ credit card debt. With the worst cities scoring 99, Phoenix fell in at No. 80. With a median credit card debt balance of $2,633 and a cost of $1,046 to pay off debt, the average payoff time in Phoenix is estimated at 53 months and 10 days.

To avoid the risk of nonpayment, it’s important to work with consumers on a plan for repayment early on.

Cedar Financial can help you give your Phoenix debtors the affordable options they need to pay off their debts sooner. Our transparent, People-First Approach is proven to increase recovery while creating more positive payment experiences for your customers.

Read our Case Studies or Request a Quote to start collecting on your funds today.

Fewer Medical Debts, but Higher Balances in Collections

As one of the fastest growing cities in the country with an expanding tech and manufacturing market, Phoenix boasts a younger, more active population less likely to have medical debt than most Americans – however, when they do have it, they tend to owe more.

According to a 2018 FINRA survey, while only 18% of the adult population in the state has unpaid medical bills (the 11th lowest in the country), the median amount of Arizona medical debt in collections is $888 – the 6th highest in the country and well above the national median of $694.

Factors contributing to high Phoenix medical debt balances include a 10.6% uninsured rate (10th highest in the country) and 17.8% of adults in fair or poor health (16th highest).

With higher balances and a reduced ability to pay, Phoenix patients may feel they cannot afford their balance and will pay very little or nothing at all.

The longer high-balance accounts go unpaid, the less likely you are to collect – which is why it’s essential to have an effective collection strategy in place.

Cedar Financial’s “Patient-First” Phoenix medical debt collection services can help you reduce operational costs and increase revenue, while improving patient satisfaction rates by:

  • Educating patients about their medical costs
  • Offering flexible payment options for those in need
  • Monitoring accounts to ensure timely payment

Our early-out Patient Outreach Program has saved hospitals and medical providers thousands of dollars in resources and has a 50% success rate.

Getting paid for your care doesn’t need to be painful or expensive – request your free quote today.

Submitting claims is fast and easy.

Litigation in Phoenix

While every effort is made to resolve accounts amicably, sometimes a firmer approach is needed. Here’s what you need to know about legal process in Phoenix.

Filing a Debt Collection Lawsuit in Phoenix

To file a debt collection lawsuit in Phoenix, the creditor or debt collector (plaintiff) files a Complaint with the Maricopa County clerk of the court, then serves a copy of the Complaint and Summons to the debtor (defendant).

Service of process must be made by a sheriff, a sheriff’s deputy, a constable, a constable’s deputy, a private process server certified under the Arizona Code of Judicial Administration.

The debtor then usually has 20 days to file an answer. If the case is not settled, it goes to trial, where the judge makes a decision based on evidence presented.

If your debtor won’t pay, Cedar Financial offers access to top local debt collection attorneys in Phoenix to pursue your claim in court.

We carefully vet your claims for collectability, place your claim with a vetted Phoenix debt collection law firm, then manage your claim from start to finish, including skip tracing, asset location, filing a lawsuit, obtaining a judgment and enforcement, ensuring the best outcome for your case.

Contact us to explore low-cost legal options today.

Enforcing Phoenix Judgments

Winning a judgment doesn’t guarantee that you’ll be able to collect your money. Fortunately, there are several ways to enforce a judgment in Phoenix, including:

  • Wage garnishment – In Arizona, creditors can garnish 25% of disposable earnings.
  • Property liens – Judgment creditors in Arizona can place a 10-year lien on real estate requiring the debtor to pay off the debt before receiving money from sale or refinancing.
  • Levying property or wages – Creditors can seize property or money from the debtor’s bank account in order to cover unpaid debts, though the first $300 in the account is protected against seizure by law.

At Cedar Financial, we don’t stop at obtaining a judgment in Phoenix court – if your debtor doesn’t pay, our in-house legal collection team will follow through with enforcement actions for the best chance of payment post-litigation.

Request a quote to start collecting on your judgment today.

Arizona Judgment Statute of Limitations Extended to 10 years

The Governor of Arizona recently signed into law House Bill 2240, extending the Arizona judgment statute of limitations from five to 10 years. This means that judgment creditors will have more time to collect and will not need to renew judgments so often.

The new law applies to any judgments entered on or after August 3, 2018. Judgments can be renewed before the expiration date for an additional 10 years.

If you’re not able to enforce your Phoenix judgment right away, Cedar Financial’s professional legal collection team can help.

We periodically review the debtor’s assets, credit, and overall ability to pay for the best chance of recovery over time. We also keep track of renewal dates so your judgments won’t expire.

Recover more with top debt collection attorneys in Phoenix

Quick Facts About Debt Collection in Phoenix

Open Invoices

Unpaid Invoice Interest Rate 10% or rate agreed to in contract.
Can Collection Fees be added? Yes, if included in contract.
Statute of Limitations/Prescription Verbal agreement: three years.
Written agreement: six years.


Post Judgment Interest Rate If not provided in the contract, 10% or 1% plus the prime rate, whichever is lesser.
Judgment Expiration 10 years.
Can judgment be renewed? Yes, for another 10 years.

Local Experts in Collections

We offer on-the-ground representatives in Phoenix who understand the debt collection practices that work to support full recovery of your funds.


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Licensed to collect in all 50 U.S. states and over 150 countries, with local offices in:

FAQs About Debt Collection in Phoenix

Why should we ask you to collect our debts in Phoenix?

We are licensed and accredited to collect your debts in Phoenix. With over 30 years of debt collection experience, we adhere to all local, state and federal laws, including the Fair Debt Collection Practices Act (FDPCA) and Arizona Fair Debt Collection Laws, using a fair, but firm approach for faster recovery of your funds.

What does it cost to hire you to recover the amount due to us?

For pre-legal services, we work on a “no collection – no fee” basis, so you will only pay when your funds are recovered. For legal services, we offer low-cost options.

What is the minimum amount or number of accounts you will accept?

We have no minimum value or volume that is required to place accounts

What type of debt do you service?

We service consumer and commercial debts, large or small, across many industries.

How long will your amicable (non-legal) debt collection process take?

It varies. Factors such as the age of the account and the type of debt being collected must be taken into account, along with the specific circumstances of the claim. Because we know timely results are important to you, we guarantee an update on your claim within 30 days.

What is the typical debt collection process?

Once we receive your accounts and the proper documents to validate the claim, our representatives will begin by skip tracing the accounts to locate the debtor. We will then immediately start working the account via phone and mail and issue a written demand notice allowing 30 days for debt validation as required by the FDCPA.

What is the statute of limitations in Phoenix, for older debts?

The statute of limitations in Arizona is three years for verbal agreements and six years for written agreements.

Do you provide field services?

If your debtor is unresponsive to letters and phone calls, we provide on-the-ground field services for investigation, skip tracing, in-person visits at your debtor’s residence, asset searches, and more.

Do I need to provide documentation?

Yes, we must be able to validate the debt before we can begin the collection process. Validation documents include, but are not limited to, contractual agreements between you and the consumer, a bill or invoices for exchanged goods or services or legal court judgment documents.

Do you offer litigation services if you exhaust all amicable collection efforts without recovery?

Yes. In the event all amicable efforts are exhausted, our in-house legal team will conduct a thorough review of the file to determine collectability in litigation. If the file qualifies and you approve, we will work with the local attorney in Phoenix to file suit and pursue the claim, including asset location, arbitration, trial representation, obtainment of a judgment and post-judgment enforcement.

Are collection fees legal to be added to the balance owed?

Yes, if they are included in the contract signed by the debtor.

* The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.    

Cedar Financial