Legal And Illegal Tactics A Debt Collector Will Use: Debt Collection Basics Part Three

In the first two articles I wrote about what a collections account was, how sending delinquent accounts out to an agency profits a creditor, and the act of a third party collection agency buying old debt from a creditor.

Just How Long Will A Negative Mark Stay On Your Credit Score? Part One

Your credit score. It could be your worst nightmare, or a dream come true. But most of the time it’s kind of like that nosy mother in law coming to stay at your house for a few days. You know that she is coming to stay, and you are not looking forward to it, but you are too nervous to ask or even consider how long she might be paying you that visit. OK, so that analogy wasn’t that great. But anyway, read on to see just how long negative marks will stay on your credit history.

When You Are In Too Much Debt And Just Can’t Pay

Debt can be an exhausting problem that weighs you down and affects your personal life greatly. But what if you have exhausted all of your resources and still can’t free up enough money to start repaying your debts in a big way? You still have choices. Perhaps it is time to think about the big things in your life- private schools, your home, and your cars. Are these things truly necessary? Another choice you have is to go through your home and your things and determine there is anything of value to sell. You can go after more money at your current job, or by taking on a second one. And there are still other options yet. Credit counseling and bankruptcy are always available, but you are not there yet, so for now, take a deep breath and determine what you can accomplish on your own.

You Only Have Three Choices When A Customer Won’t Pay.

No matter what measures you take to try and weed out potential non-paying customers, sooner or later one or more accounts are likely to become past due. When you find yourself with a past due account on your hands, the worst thing you can do is ignore the problem. The more time that passes between the payment due date and the time that the customer is contacted, the less likely you are to receive the full payment. After 6 months, you statistically collect only 50% of the amount due and after a year that amount drops to only 25% of the original debt. If you’re serious about making a profit, there are three ways to handle collection on past debt; in house efforts, hiring a collection agency, or taking legal action.

What Is A Debt Collection Agency

Depending on how the debtor reacts to the demand will affect what additional notices (if any) the company will select from its library. Voluntary resolution (e.g. making payment arrangements and/or partial payments) may result in letters with a gentler tone. Deceptive or belligerent reactions from the debtor may result in a more threatening tone.

Cali Collection Company Tries To Get Fit And Healthy

A collection agency based in California produced a plot to motivate and educate employees to live healthier lifestyles in early January. There are twenty eight employees at the agency; more than half are currently participating in the initiative.

Debt Collection Companies Are Cutting Out Paperwork

Everyone seems to be “going green” right now and collection companies are now following suit. Agencies such as Pacific Northwest Collections are now eliminating paper files and instead are using a piece of software called Document Locater. The shift from paper to paperless has benefited the company in many ways.