Wes Hamilton offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: About Collection Agencies and How They Work Author: Wes Hamilton Category: Business Word Count: 849 Keywords: business financing.small business,loans,financing,entrepreneurship,business plan Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
If a creditor or lender is not able to get one of their customers to pay or make satisfactory arrangements on a defaulted loan, then they may require the assistance of a debt collection services company. This type of company is called a collection agency and they specialize in collecting bad debts. If the past due account is over a credit card or something similar, then they will attempt to reach the debtor by phone, to make arrangements to pay the balance in full or agree to a repayment schedule. If the loan involves collateral, such as a car, then there are times when the lender will have the collection agency repossess the vehicle and they will normally receive a flat fee for this type of recovery. After many frustrating months of trying to collect on past due accounts, a lender will normally obtain the services of one of the many collection agencies for the recovery of lost monies. Often, a debtor will skip town, leaving no information on where they can be contacted because they are behind on their bills. At that point, it is wise to hire professionals to assist with your bad debt collection efforts. Most businesses do not have the time or resources to track down a debtor who has left town with no forwarding information, which is one very good reason for hiring someone to give them some collections help. A collection agency has access to many different types of information and resources when it comes to tracking a debtor down and collecting the money due. Once an agency has found the debtor but they are not able to pay the loan off, then a repayment schedule may be suggested but that is totally at the discretion of the lender. Are there ways to prevent overdue accounts? If you could limit yourself to only doing business with companies that have a spotless and perfect credit rating, then you would not have to worry about business to business collections, or have to hire a commercial collection agency to collect the money for you. Of course, if you did limit yourself to only those with great credit, then you may not have much of a business left to run. Despite your best efforts, it is likely that you will need to contact a commercial collection agency to collect what is owed from other businesses. You do not want to jeopardize any current or potential business clients by laying down harsh terms, but it may be needed. It is also a good idea to hire a collection agency that is familiar with commercial collections to make the process a little easier for everyone involved. Collection agencies are necessary in our modern world. There are times when a lender, whether it is a bank, mortgage company or car finance company, may have difficulty collecting on the debts owed to them. Generally, they will attempt to collect the debt themselves; however, depending upon the type of loan and collateral involved, they may employ debt collection services to recover the property or money. Collection agencies are organizations that collect on defaulted loans or bad debts. Basically, if it is a credit card debt, then the collection agency calls the debtor and asks for the account to be paid in full, or they may set up a repayment schedule until the debt is cleared. Most times, unless the debt is secured by collateral such as a vehicle, the agency will attempt to collect the debt by making numerous phone calls or through written correspondence. If it is secured by a vehicle or boat, then there is a good chance it will be repossessed. Collection agencies for hire will work hand in hand with the creditor, or lender, as they not only have to adhere to the Fair Debt Collections Practices Act, they must also follow the guidelines given to them from the individual companies that hire them. One advantage of using a collection agency is that you do not have to track the person down yourself, as the agency will do that for you, leaving you more time to spend on your important business dealings. Collection agencies specialize in negotiating with debtors in order to get their account current. It has also been shown that involving a third party raises the chance of the debt being collected. All agency collection activity done in the United States is regulated by collection laws that have had several improvements over the years. As with any type of business, there were some companies that were less than professional to say the least. With the FDCPA (Fair Debt Collections Practices Act) there are much stricter guidelines that all bill collectors must follow. Fortunately for consumers, there are now laws in place that prohibit certain types of collection methods, including unfair, abusive and deceptive practices. This is a federal law that applies to all collection agencies, collection attorneys or any other individual or company attempting to collect a debt. This includes all types of collections. If it is a secured loan, then it would apply to collectors attempting to collect payments on an automobile, boat or even a home. Wes Hamilton is the owner of PLUMB PRO, INC a full service plumbing company in Alabama. Visit our website for more Free Information and PICTURES. Visit http://www.plumbpro.net/ and http://www.plumbproinc.com/ ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
