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Posts Tagged ‘debt collection service’

According to the most current information from company TNS, average Americans still feel quite negatively about the state of the United States economy. According to the study, their feelings about the economy have not changed at all since September. An overwhelming majority, sixty four percent of debtors who were surveyed held a position that things had taken a turn for the worst at that moment. On the other side of the fence, unlike Americans struggling to survive in debt, business executives surveyed that pull in between three million to two billion dollars have a much more positive take on the situation.

Welcome back to debt collection 101, your beginner’s guide to debt collection. In articles one and two, I spoke about the different kind of collection agents, how bill collectors will locate a consumer, and what they will do when they contact the consumer. In article three I described the strict rules and regulations that debt collectors, particularly third party debt collectors must abide by when they make each phone call.

In article four I wrote about what the job of a bill collector is like, and in article five I described the expectations that collection agents are usually required to meet on the job. Now I will speak about the perks of being a debt collector, and what the collections industry can expect to see in the future.

When it comes to personal finance, it pays to be educated. It pays to know what you are spending your money on, where it is going to, and why. Most people own credit cards, and don’t give a second thought about it whenever they whip out the plastic. But think about it now: credit card companies have been in the business for a very long time. They know what they are doing, and there are many “games” that they like to play that can have an effect on you financially. And if you have credit cards right now, welcome to the game. This is a two part series of articles on tips for dealing with the credit card companies.

The fact of the matter is, the more time that passes between the time the payment was unpaid and the time the customer is contacted, the less likely you are to be given any sort of payment. 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.

Collecting the debt unassisted: If the debt is new or small, in all probability you will start by trying to collect the debt yourself before hiring a collection agency or a lawyer. The most productive way to start the process of collecting an uncollected debt is by calling the debtor. Many nonpaying customers can talk a great talk on the phone, but then never deliver. If the business is local, do one’s best to make an appointment with their finance manager to talk face to face.

Exactly who is trying to get me to pay up? The Fair Debt Collection Practices Act was created in the 1970s and provided a good amount of protections for consumers. There are strict rules and regulations that a debt collector must abide by, and if any of these regulations are violated, there’s a good chance that you could sue that agency. But what about that friend of yours who owes you five dollars? Do you have to grant them thirty days to refute the claim? Clearly, you do not.

U.S. Bankruptcy Code imposes something called an automatic stay the moment that a petition for bankruptcy is filed. The automatic stay will typically prevent the enforcement, commencement, or appeal of actions and judgments against a debtor from the creditors they owe money to who are trying to collect these debts incurred prior to the bankruptcy petition. The automatic stay also protects property of the bankruptcy estate itself from collection actions and proceedings.

If a creditor violates the automatic stay their actions are voided out. Any violation of the stay might cause the violating party to have damages assessed to them. But, like every complicated law, there are exceptions. A creditor might be allowed to take their collateral if they obtain permission from the court first. They’ll get this by filing a motion for relief from the automatic stay.