How does the Debt Collection Process work for Business?

Private collection of debts firms not only help you recovering debt amount but also provide services like asset recovery; tracing and pre-sue report. If you have sold your goods to an individual or firm and they have not paid for the same then the private collection of debts firm will try to recover that asset for you. If that is not possible, they recover the cost of the asset. Tracing is yet another service where the firm traces missing persons who owe you. You do not have to hire private investigators and spend loads of money when you can hire the services of private Business Debt Collection. The best part is that you will only have to pay the fee once they have successfully traced the individual you are looking for.

Business Debt Collection

If you have taken a loan and have fallen behind on a few payments, the creditor may seek the help of a debt collector to get their money back.  Collectors are paid a percentage in commission from the money recovered.  Creditors may also choose to sell debt as a package to a collection agency.  The onus is now on the debt collectors to get their money back along with any profits – they are motivated to get the maximum amount from a debtor.  Such companies are known as 3rd party collectors.

Debt Collection Process

Initial contact:  Customers usually hear from debt collectors when they send a letter.  Collectors can only call 5 days after sending the letter.  If the call is unexpected, you can request the letter to be sent to a different address. Debt collectors can call family, friends or even an employer to track a customer down.  This is only so that they can get your address and phone number. Employers are forbidden to share information unless authorized by you.

Proof of debt: If and when you are contacted by an agency, information about the collection agency, the original creditor, when the money was taken and the balance owed should be offered in writing.  If you are not sure that it is yours, you don’t have to pay to make it go away.  If it has already been paid, then make sure to show proof so that there is no issue with credit scores. You can dispute it in court if necessary.

Phone calls: Once you have received a letter and talked to the agency on the phone, expect to hear from them on a daily basis. Debt collectors are allowed to call only between 7 am – 9 pm, Monday through Saturday.  They cannot threaten you or exert unreasonable pressure.  You can report them to authorities if they are unduly pressuring you.