A Debt Recovery or Debt Collection Agencyby Lulu BM BM
There are a number of good reasons in privilege of having and using a credit card. Like all want to know the possible adverse results in unchecked use of "plastic" or credit card.
Debt collection agencies often specialize in certain areas. Some, for example, excel in securing funds from large companies while others do well working with small businesses or home-businesses. If at all possible, find out what sort of debtors the collection agency most often deals with and what sort of businesses it serves.
Authenticate different states and localities have different rules for debt collection agencies. Make sure the one you want to hire is bonded, licensed, and adheres to the rules of the Debt Collection agency.
You should consider talking to the collection agency when you have credit cards. This will help you preserve your credit in good standing and repair any damage that may have been caused.
Make Sure the Agency has Insurance.No matter how much research you do, there’s always the possibility that a debt collection agency uses aggressive tactics or that the debtor feels the agency acted in bad faith. In these instances, the debtor can sue. Whether or not you win the case, you want to make sure that you won’t be held liable for hiring the agency. Get proof of insurance from your debt collector in the unlikely event that your debtor takes you both to court. This is most often called “Errors and Omissions Insurance” and is held by good debt collection agencies as protection.
The Debt collection agencies are companies who studied in collecting debts where the original creditor can't get delay repaid. There are so many debt collection agencies in the Singapore. Some are small and go deeply into collecting only certain types of debt. Others are very large companies operating across several countries.
Once you’ve found a few collections agencies that might work for your business, it’s time to look into their costs. Here, it’s worth noting that the way in which agencies charge for their services can be very different and you should choose the one that’s right for you. Some common payment structures are as follows:
Flat Fee: A straight-forward cost usually associated with “pre-collection” fees and usually fairly small. This flat fee is generally offered early in the debt collection process.
Contingency: This is the most typical arrangement. Most debt collectors use a “No Collection - No Fee” model and charge somewhere between 25% and 45% of the total amount for collection, depending on the particulars of the account (such as how old it is, how many contacts have been made, etc.).
One thing to keep in mind is no matter what, once you’ve hired a debt collector, you will not be receiving the full and total amount you’re owed. For this reason, it’s recommended you exhaust your other options before hiring one, like writing your own Demand for Money Owed first.
Created on Dec 31st 1969 18:00. Viewed 0 times.