Debt collection includes recovery of payment against unpaid bills or unpaid amount towards payments for credit card account, property loan or mortgages, etc. This function is performed generally by a single individual or a collection agency. The main activity of such a collection agency is to follow up the debtors who have unpaid sums of money to creditors. The debt collection agency works for fixed charges or for a fixed percentage of the debt as decided by the creditor.
Different types of debt collection agencies.
• First party agencies – These are paid employees or associates of the creditor
• Third party agencies – These are outside agencies appointed by a creditor company or individual to follow up with the debtor and collect the amounts due for the company; the service is done for a fee.
All countries have their set of regulations for debt collection. These regulations ensure consumer safety and protection.
Debt Collection USA
Debt Collection USA assists companies, business and individuals. They provide an entire service from sending demand letters, making telephone calls, e and initiating legal proceedings by issuing legal documents. These types of services are available throughout USA and the agents are deployed across the world.
Debt Collection USA assigns the creditor’s accounts to a mercantile agent who is licensed to follow up with the debtors through legal avenues. However, the methods of collection normally result in the full recovery of debt before the need for any legal action.
They achieve this by identifying the issues those stand against compliance and finding out viable solutions to obtain payment. These agencies assist the creditors to resolve disputes speedily and favourably thereby providing the much needed cash-flow for the business activities.
Recovery of delinquent accounts
These agencies assist you when you have failed to make a debt recovery through your normal internal processes or when you need the external support for litigation.
Creditors can save on collection costs through recovery of outstanding accounts without the need for expensive and time-consuming litigation.
The overall cases subjected to litigation works out to be less than 5% of total cases referred to these agencies.
They secure your debts by providing you with expert services through experienced hands.
The pricing policy of these debt collection agencies is based on collection of your money. They charge commission only after making a recovery.
When court action becomes necessary, they offer the services of their solicitors at Court Scale Rates. This means that your debtor is liable to pay the majority of these costs as decided by the courts.
Collection procedures are tailor made according to the individual clients. Different industries require specific solutions in the customer / client relationship. They adopt the correct approach of resolve through mediation unless specifically directed by the client.