How do collection agencies work?
Have you ever fallen behind on loans,and you started receiving annoying calls from your creditor? Many times the people that are calling you actually work for debt collection agencies. Here are a few things you should know about who they are,why they are calling, and what you should do:
What is a debt collector?
A debt collector is a person that collects outstanding debt balances. Most of the time debt collectors work for a third party collection agency for the original creditor. Debt collectors are utilized as middlemen to obtain debt and remit the payment back to the credits for a percentage.
What do collection agencies do?
Debt collection agencies collect delinquent debts such as credit card, medical, automobile, personal loan, business, student loan, utility & cellphone bills debt. Collection agencies offer debt collection services to businesses that allow creditors to outsource collections to a third party. After 60 days when accounts become delinquent creditors may contract with a collection agency to get a payment. The creditor pays the collector up to 45% of the amount collected when they are hired.
How to get the collection calls to stop?
If you are getting fed up with collection agencies contacting you there are a few things that you can do to get them to stop. Make sure you understand your consumer protection rights that all debt collectors must adhere to such as no harassment, pretending,unfair practices,and contacting others more than once regarding you. The first option is to pay off the debt if you can afford to. The second option is if you can’t afford to pay the collection off let them know. Last but not least, if you don’t prefer those options you can simply write a letter to the collector to stop contacting you and they must obey.
If you are having problems with colleciton agencies and don't know where to start contact us today.
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