Collection agency

We don't pay commissions to travel agents. (Altho given we pay commissions to the OTA group so why not?) Anyway, if an agent asks we tell them no. Sometimes we work with them by giving them a lower rate and then they charge the guest full price.
We've also had the experience of agents wanting a discount for their own vacation. I'm not on board with that being as it's usually a 20% discount in the middle of peak season. And how many people use travel agents anyway? Maybe large groups?
Back on track - got a letter from a collection agency today stating we owed a travel agent $100. What???
Totally annoyed the TA never contacted us, just sent it out for collection. And they were charging the commission not only on the room but on the tax as well!
Geez people.

I got one once. The TA had spoken with me on the phone but never asked if I paid commissions or mentioned it in any way.
We did receive one bill (though at the time I had no idea for what) and thought it was a scam like the many YP invoices that come in. I just tossed it. Months later the collection company's bill came.
It was over $100 and well above the commission rate had we agreed to pay it in the first place.
I wrote back that there had never been a mention of a commission charge when I took the reservation. They must be up front when they reserve for a person. I told them to send me proof of my commitment to paying the commission and at what rate.

Never heard another word.

That's ridiculous. You have no contract with them. They could never prove their claim. After a call to them, if it wasn't straightened out, I'd file a claim again them for dinging my credit.
How long ago was the transaction?

Breakfast Diva said:

That's ridiculous. You have no contract with them. They could never prove their claim. After a call to them, if it wasn't straightened out, I'd file a claim again them for dinging my credit.
How long ago was the transaction?.

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Never thought about the credit report! I'll have to check that. Of course they would need our business name for that, which they don't seem to have. Only the DBA name.
This was from almost a year ago.

Had that happen to me my first year - I did remember the guest but was never made aware of any commission. It was a Coldwell Banker travel agent. I wish I had thrown it away but the guest worked for Southern Living and had done an article about the area. It was not so much, maybe $50 but it was the same deal - went right to the collection agency. I wasn't smart enough at the time to contest it. Now, I would fight it.

Read the law... https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text#809 §809. [15 USC 1692g]
You have to do this within 30 days and it is a requirement that they present you with information for debt validation. Also at the same time, request a copy of the contract between them and your company along with the reservation ID, the name of the reservation, the dates of the reservation and proof that it was not only done by the travel agency, but that it was the same agency stipulated under the contract and the contractual percentage.
Usually at that point, they will walk away, because they don't have all of that.
Personally, I would sent it registered mail along with an invoice for the cost of postage and registration with a letter stating:
Without Prejudice
Upon failure to provide required documentation, please send a cheque for the cost of the registered letter, since you illegally began collection proceedings and that you reserve the right to use any and all legal means to collect the registered letter costs.
~*~
Incidentally, we adamantly tell all agents that we do not pay commission, but they are welcome to make the reservation and pay it. Once paid, I cannot disclose the original amount, so if they want to charge the client more, they are welcome to. We have at least two that regularly choose to do it that way.

TRAVEL AGENT??? WHAT IS THAT? No one uses at TA unless maybe booking a big first time ever tour to someplace exotic or something. I would never pay a commission to one. Who uses one to book a B & B? Can they prove it?

EmptyNest said:

TRAVEL AGENT??? WHAT IS THAT? No one uses at TA unless maybe booking a big first time ever tour to someplace exotic or something. I would never pay a commission to one. Who uses one to book a B & B? Can they prove it?.

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We get probably 5-6 calls/year from travel agents. Some never call back when we say we don't pay commissions, others book anyway because they have a customer who wants a vacation.
I'd say it leans more towards older, single women who want the reassurance of someone else making the arrangements. Maybe the husband always used to do this and now he's gone. (Or, more likely, the secretary used to do this for either of them.)
We just had one who said she would definitely recommend us even tho we don't pay. If she called back, I'd probably do a commission.
Last year's TA went around the dining room handing out her biz card and complaining about everything. So, this is where you're staying, you don't like it and now you want someone to use your service to book their vacation? Might want to rethink that business plan.

EmptyNest said:

TRAVEL AGENT??? WHAT IS THAT? No one uses at TA unless maybe booking a big first time ever tour to someplace exotic or something. I would never pay a commission to one. Who uses one to book a B & B? Can they prove it?.

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They now handle corporate and large group accounts. We get calls from high end agents occasionally. Our policy for the last several years is clear. We pay a 10% commision on the second booking forward. Almost in every case, they are calling because the client told them to and the chance of a second booking are slim and none.

I get a lot of Travel Agents booking rooms with me…many in the United States but the bulk of them are from Germany and England. Those guests want everything set up by a travel agent in advance. I do not pay commission to any of them and I tell them that up front.