Have You Dealt With Debt Collectors? Here Are A Few Things You Should Know
It’s unfortunate, but more and more people today are having to deal with collection agencies because of the bad economy. Otherwise responsible people are finding themselves behind the 8-Ball when it come to paying their bills either because of layoffs or shrinking salaries.
While getting letters and phone calls from collection agencies can be embarrassing – even frightening – there are a few things you should know about the collection process.
What are collection agencies anyway?
When a company has debts that they’re having difficulty collecting they often turn to professional agencies that specialize in debt collection. They do this for several reasons. For starters, these collection agencies usually agree to purchase the outstanding debts at a reduced cost and take on the sole responsibility of getting the money. This allows the original company to recoup some of their losses and frees them from the hassle of collecting the debt.
Also, companies understand that the longer a debt goes unpaid, the chances that they’ll ever see the money decreases, which is why they’re normally more than happy to get some cash up front and let someone else deal with the headache of collection.
How do collection agencies operate?
Collection agencies, like Pay Star, use several tools at their disposal to extract payment from debtors. The first thing a collection agency will usually do is send a standard form letter informing the debtor that they owe money and that they should make arrangements to pay. These letters are generally in the tone of a “friendly reminder” and only get more threatening if they’re ignored.
If letters fail to generate a response, the collection agency will then resort to contacting the debtor by phone. It’s important to keep in mind that collection agents are forbidden to reveal the nature of the phone call to anyone but the debtor. If someone else answers the phone or if they get a machine, the agent can only say something to the effect of, “This is Joe Smith and it’s very important that you call me back.”
Collection agents generally receive bonuses or commissions based on the money they’re able to collect, which is why many of them will use tactics designed to frighten the debtor. It’s important to realize that they can’t take your physical assets and that lawsuits are rare. Still, if you’re in debt to a collection agency, you’re best bet is to negotiate some form of payment plan because they can report you to credit agencies, which can hurt your credit rating for years to come.
Another thing to keep in mind when dealing with collection agencies is that by law, they have to provide you with proof that you actually owe the money. It’s important that, whenever you’re contacted by a collection agency, that you get this proof because mistakes do occur. You may have already paid off the debt or you may be the wrong person.
If you’d like to know more about why paying a collection agency is important, or want an easy way to pay off your debts, log onto Pay Star’s website at, www.paystarintl.com.
Additional Resources
Paystar International :: Home Page
Paystar International :: Article on Betaflow
Paystar International :: Listed on Review-inc.com
Paystar International :: Information on Incprofile.com
Paystar International :: Article on 800review.com
Paystar International :: Article on Tvbubble