Best Debt Collection Agency in USA and Canada

1. How Does a Debt Collection Process Work? Debt collection is the service offered by specialized debt collection agencies to creditors in order to collect payments of debts owed by individuals or businesses. It can be done through a mutual process and understanding between the creditor and debt collector or the creditor can decide to sell debts owned by individuals to a debt collection agency and stay away from the collection process going forward. A debt collection agency collects delinquent debts from people who have failed to make payments they owe to a creditor for products or services such as personal loans, home loans, automobile loans, business loans, phone bills, credit card bills, and many other bills behalf of creditors. Creditors pay the debt collector a percentage of the amount collected after the settlement between the creditor and consumers. When will debt collectors contact individuals with failed or late payments? Every creditor has a policy when it comes to collecting overdue debts, and they don’t hire debt collectors straightaway to contact people who are late with a payment. Instead, they contract directly with the customers by phone, email, or letter to remind them about their debts and request payment. If they fail to respond to the notice or ignore multiple reminders, the creditor may then refer the account to a debt collection agency for payment collection. From here debt collectors take charge of payment collection of overdue debts and start contacting individuals for the payments. Debt Collection Process A debt collection agency uses phone calls and letters to contact borrowers and ask them to repay their debts. If the agency is unable to contact borrowers with the contact information provided, they look further to investigate them using private investigators and computer software. They also conduct searches for assets, bank accounts, and brokerage accounts of borrowers to determine their ability to repay. Debt collectors use various strategies to convince or encourage borrowers to pay their debts which can seriously damage their credit score for future loans and financial products. For some difficult-to-collect debts, debt collection agencies also negotiate for a settlement process that works in favor of both parties. Typically, a debt collection process has the following stages: Borrowers receive a notice from the creditor to remind them about their overdue payments. Creditors move borrowers’ accounts to a “charge off” status. Borrowers’ debt is sent to a debt collection agency. Debt collectors contact borrowers to verify their identities. Debt collectors issue a written debt validation notice to borrowers. The debt collection agency continues to make phone calls and send notices to borrowers. Borrowers agree to make payments or for a settlement. The debt collection agency closes borrowers’ debt account.

2. Debt collectors tend to specialize in settling specific types of debts with certain limitations over debt amount and debt period. A debt collection agency work with attorneys and other middlemen or experts for collecting customers’ delinquent debts on behalf of creditors. These agencies help creditors to settle and close debt accounts through a speedy recovery process. If you are creditors and done with chasing borrowers, hire a professional debt collection agency to take over the process so that you can focus on other works. Source: https://griffonfinancialgrp.com/