What is the process of choosing receivables?
The process of selection of receivables usually begins with the original creditor. Customers who omit payment may receive a letter by mail or phone call reminding them that the payment is due. Missed payments resolved in this early phase usually have only minor consequences, such as a small fee or a smaller incident in the debtor's credit report. However, there are no more payments over time or debtor, the process of choosing receivables becomes more serious; The creditor may start calling more often or sending more urgent correspondence by mail. About six months after the first missed payment, the creditor usually charges from the account. This action usually has a serious impact on the debtor's credit report. At this point, the collection agency is legally obliged to notify the debtor that it has taken the account.
Upon receipt of the collection Agency, the debtor usually has 30 days to question the authenticity of the debt. If the debtor claims that the debt is not valid, the collection agency is obliged to verify the account with the original creditor. Agency cannot take further steps, fromIt is an account in the dispute.
As soon as 30 days passed or the account has been verified with the original creditor, the agency will start the selection process. Agencies usually contact the debtor by mail or by phone and require payment. Some collection agencies may be willing to cooperate with the debtor by offering payment plans or settlement amounts, but have the right to demand as much as they want if they do not exceed the total amount. Collectors are not obliged to accept an offer or payment plan from the debtor.
While debt collectors can use many tactics of negotiations in the right to select receivables that collects money, forbids certain behavior. For example, collectors cannot call before 8:00 or after 21:00. They are not allowed to bother debtors, use obscene or threaten them. Collectors do not have to make false debt claims or endanger threats concerning legalsteps that do not really plan to take.
If the debtor fails to pay the amount due or has not satisfied the settlement, the agency may sell an account of another company or legal representative. A lawyer may take legal action against the debtor, including a judgment or court proceedings. The settlement at this point of the recovery process often means appearance in court and other fines and fees. It also has a serious negative impact on the debtor's credit report.