Debt Collection Agencies and their Tactics
- Author Kim Brandon
- Published August 23, 2010
- Word count 528
Debt collection agencies are the one business no body wants to get a call from. However, in our current economy it is a fact that greater numbers of individuals and businesses are finding themselves on the receiving end of calls from debt collectors. In fact, debt recovery has become a big business given the dismal state of credit markets. Businesses are finding that they need to call collection agencies with greater frequency simply because they can no longer handle the number of defaulting accounts. Despite the usefulness of collection agencies, they are mandated by law to follow certain guidelines and to follow certain behaviours in order to prevent their collection tactics from getting out-of-hand.
Some rather unscrupulous debt collection agencies would cross the line to unacceptable behaviour. Debt collectors are not allowed to intimidate or otherwise threaten the people from whom they are wanting to collect from. They are not allowed to contact an individual at their place of work, to speak to their colleagues or their boss unless it is to find out how to reach the person. They are not allowed to contact an individual before 7am or after 9pm at night and they are not allowed to contact the person’s neighbours, friends or colleagues unless it is to find out how to reach the individual. Unfortunately, despite the rules, many debt recovery businesses find ways to circumvent the rules and still end up harassing the people with outstanding accounts.
If you are a business owner and you are faced with having to hire a debt collector to help with debt recovery, then you should definitely vet the available debt collection agencies very carefully before hiring just anyone. The last thing you want is for your reputation to get tangled up with the tactics of an unscrupulous collection agency. It is always in your best interests to find the scrupulous debt collectors so that your company’s reputation does not suffer due to a third party’s actions.
That said, it does not mean that all collection agencies use such tactics to get what they want. In fact, the vast majority of debt collectors follow the rules and collect in an acceptable manner. However, the best way to start, when it comes to debt collection, is to take preventative measures before it gets to a point where you need to call in collection agencies. When you first notice that someone is more than 30 days behind in their payment, you should contact them immediately in order to ascertain whether it was just an oversight on their part or if they seem to be in some sort of financial trouble. Sometimes, if you find out that a client is unable to make a complete payment, it is best to settle for less and to write the rest of the debt off. If you are unable to even negotiate such a settlement, then it is best to pass on the debt to a collection agency.
By hiring a debt collector to assume your debt, you will at least get a portion of your debt repaid and then the trouble of recovering the unpaid balance belongs to someone else.
Kim Brandon writes articles about debt collection agencies and debt recovery. If you would like to know more regarding debt collectors, collection agencies and business debt in the United Kingdom, read the buyers guides on Debt Collection Agencies.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Effective Strategies for Paying Off Your Mortgage Faster
- How Does Equity Release Work?
- Florida First Time Homebuyer: The Indispensable Guide of Tips, Programs, and Resources
- How to Become Debit Free?
- Sellers Concession the Closing Cost Option
- Financing Short Term rentals with DSCR loans
- Why move to Roseville CA
- Simple Interest Mortgage Advantage
- Are Low Doc Commercial Loans available in Australia
- How to Obtain a Rural Agriculture Loan Quickly and Easily
- What is a Caveat Loan?
- Tips for improving your Credit Score before getting a Home Loan
- 3 Things To Look out for With An Equity Release Mortgage
- Manage your Debts by Refinancing your Current Home Loan
- How to Get a Home Loan with Unusual Employment or Income?
- 20 Effective Debt Consolidation Loans Tips with Bad Credit
- Tips for Choosing a Non Conforming Lender
- Why is a Good Credit Rating Important in Australia?
- Most Common Ways That People Fall Into Personal Bankruptcy
- How to Choose a Consumer Credit Counseling Agency?
- Consolidate Your Debts and Take Control of Your Finances
- How to get a Home Loan due to a Bad Credit Report
- Debt Consolidation Home Loans are a Solution to Multiple Debt Problems
- Facts You Should Know About Low Doc Home Loans in Australia
- No Doc Loans from Private Lenders
- Home Loans to Consolidate Debt for People with Bad Credit
- How Can I Get a Mortgage If I Have a Bad Credit History?
- Guidelines to Fix Bad Credit Effectively Through Dispute
- Dealing with Debt – What to know about Debt Consolidation
- Investing In Yourself Before Investing in the Market