Debt Collection Basics: Part Seven

Posted on August 7, 2010
Filed Under Financial Education | Leave a Comment

In my first six articles on my seven article series on debt collection, I defined a collection account and why it is profitable for a creditor to send a delinquent account to collections. I wrote that many creditor will sell very old debt to third party collection agencies which become the new creditors and will begin to collect on the debt themselves.

I mentioned the information that a collection company will utilize to put together a game plan when it is collecting from a debtor and the statute of limitations to collect debt. I mentioned that third party debt collection agencies are governed by federal and state law and are overseen by the Federal Trade Commission.

I mentioned some illegal and legal tactics that a third party debt collector might use to collect late payments. I stressed the importance of verifying proof of the repayment agreement and getting proof that you paid after you have done so. I offered you the advice that it is easier and less stressful to stay on top of payments in the future, and that if you fall behind with a creditor by one or two payments, deal with them directly instead of permitting them to send your account to collections.

I let you know that many times if you can anticipate not being able to make a payment it can be better to call a creditor in advance and let them know about this and ask them if there is anything that you can do. Most times these financial situations can be dealt with without penalties or late fees.

I gave you the obvious advice that your father always told which was in order to protect your personal finances, cut back on stress and avoid the collection agent, don’t pay for what you can not purchase now. With the exception of food, water, heat, or shelter there is not anything that you absolutely need now, that is worth endangering your financial situation for. The economy is in shambles now, so that job you may be depending on may not always be there. This concludes my series on debt collection, I hope this summary was informative.

Having trouble with a bad credit loan? Call Rapid Recovery Solution for help with a bounced check. Mallory Megan works for a commercial collection agency. This article, Debt Collection Basics: Part Seven is released under a creative commons attribution licence.

Comments

Leave a Reply