The last item in our Recovering “bad debt” series dealt with engaging your own “IN HOUSE” collections department. Now the issue for a serious auto finance company is understanding the value of outsourcing “bad debt” recovery and the key considerations affecting the selection of the “right” outsource entity or entities be it a Law firm or agency. You know them as “vendors”. Here are the key considerations; Size (balance) of “bad debt” Account Reasons for delinquency Short vs.