What is a collection agency?
It is never good to be so far in debt that cannot be paid. Equally embarrassing and frustrating because it is for a person who is responsible for paying accounts, it is just as frustrating for those who try to collect payments. After all, they provided a service and should be sufficiently compensated for it. It is still frustrating if a person whose account has been in arrears for several months does not attempt to contact its creditor and organize a more pleasant set of payment conditions. In this case, the creditor may feel that he has no choice but to hire a collection agency. The longer the debt remains unpaid, the less likely it is likely that the creditor will get back all the money due. I hire the collection agency as soon as possible, the creditor can let someone else manage frustration from sending letters, telephoning and ignoring the debtor. In fact, most of the people who are in debt hear three "collections" and do what is in their power to quickly pay an account.
collection agency itselfApparently they don't work for free. The average collection agency can expect to bring fifteen to twenty percent of each debt collected. Although it may seem like an astronomical amount, most of them agree that they have a better chance of returning any funds using a collection agency and finding a fee for it.
The reason why the collection agency received a bad rap is that many debtors feel that they were harassed by threatening letters and more telephone calls from the collection agency representatives. In the past, this may have been true, but now there are laws that protect debtors from harassment. While the collection agency is allowed to address the debtor via a fax, telephone, mail or telegram, it must not do so in a threatening manner. Also, they are not allowed to bother debtors more more phone calls. It must be identified immediately and be straightforward about the purpose of their telephone calls.
If you are in debt and you feel that you are annoyed by a representative from a collection agency, simply ask him to stop. Once the collection agency is asked to stop it must do so. If they do not stop, they may be fined. This does not mean that the creditor cannot sue the debtor for non -payment of funds; It only means that they must stop calling or writing to collect the funds. You no longer have to receive phone calls, but until the debt is paid, it's still in the books.