The Working Process of Debt and Medical Collections Agency
There is no reason to think that debt collection is an illegal business and whenever you are contacted by such an agency it means there will be an abusive relationship. This is an honest business in which an amicable agreement is made with you as the debtor and them on the behalf of the creditors. Such agreement will help you to pay the creditor back according to your convenience, as far agreeable, with rescheduling the payment date and structure. You can pay back in full or in equated monthly installments as per your ability. You can even have a reduced settlement amount if you face serious financial constraints.
The Job of Debt Collection
Debt collection can be done through agencies or independently who may or may not be attorneys. Sometimes agencies specify in the area of debt collection and therefore you can have judgment collection agency, medical collections agency, debt collection agency and much more. Such agencies act as the middlemen for the creditor, collects debts that are over sixty days due and remits it to the creditor. The remuneration received by these agencies depends on the amount collected as a percentage of it is paid them for their service.
The Working Process
The process starts with a phone call or issuance of a letter to the delinquent debtor asking to make the payment. There may be some debtors who are untraceable as per the furnished details by the creditors. In such cases the agency, consumer debt or medical collections agency takes help of private investigators and computer software to pick up a clue. Reports of delinquency may also be sent to the credit bureau asking the consumers to pay and also enable them to include in the debtors credit report.
Types of Debt Collected
Different types of debts are collected by a commercial debt collection agency all of which are delinquent for over a period of two months. There are no outstanding debts included in their service which may have become obsolete for several limitations. Apart from medical and credit card debt, which are most common collections, such agencies also collect personal loan debts, auto loans debt, student loan debt and business debt as well. The service of such agencies is also hired by various government agencies for the collection of unpaid utility and cell phone bills as well.
Consumer Protection Law
The debt collectors in no way harass the debtors and take advantage of their current financial unstable condition and work in accordance to the Consumer protection Law. Debtors cannot be sued beyond the statute of limitations, not abuse or threat, not discriminate debtors by their race, caste, sex or age or even publicize your debt. They are not law enforcement agencies but a mere collector working on behalf of a creditor.
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