What are the cost of the collection?
The cost of gathering is any costs associated with obtaining a debt for which the debtor failed to pay for his obligation. For example, items such as fees charged by collection agencies and lawyers are the cost of gathering, as well as the different costs associated with the collection of debt through the legal process. Other costs associated with lending, such as the cost of obtaining credit reports of potential debtors, are related to lending decision, not collection and therefore are not the cost of selection. Similarly, the routine costs of collecting debt in good condition - printing coupons or income issuance, as payments are made, for example, are not considered to be collected. Most such agreements include the default provision and outline the steps that the creditor can take if the debtor is not a Pay debt as agreed. The default provision usually contains a clause that provides the debtor's cost of gathering - ie all costs incurred by the creditorwhen attempting to assemble an unpaid debt.
As long as the debtor pays at least the minimum amount due, the loan is considered in good condition in time. In general, it takes a while for the creditor to consider a loan for a delay - such problems as one late payment, generally do not lead the creditor to the loan statement by default. In general, however, if the debtor is missing two consecutive payments, most creditors declare a loan by default and start the collection process.
When creditors conclude an agreement with external agencies for the collection of non -payable debt, collection agencies monitor the costs that cause debt when collecting. Postage paid for the mail notification of a collection or example is one of the cost of collection as the cost of calling the debtor. In many cases, however, a collection agency simply adds a flat fee or a percentage of debt to be collectedbe than to lay down the expenses.
Further costs of collection are fees for legal representation. If the collection agency is unsuccessful in the collection of debt, the original creditor will refer the case to a lawyer who will continue to threshold, through the threat of an action to persuade the debtor to pay. The lawyer generally has the right to negotiate with the debtor and the amount of negotiations is the total amount of the creditor, plus the cost of selecting the added collection agency and the attorney. As far as the court is concerned, the amounts are less likely to be regulated by negotiations. If the creditor's lawyer wins this case, the debtor is ordered by the court to pay the amount that is generally the entire amount of the creditor, plus the fees for legal representation and the conists of Urt.