In the first four articles in this series I defined the term collections account, wrote about how sending delinquent accounts out to an agency helps out a creditor, and described the practice of selling an old debt to a third party collection agency.
I spoke about the type of information that a collection company will obtain to utilize in their efforts, and the type of laws that third party collection agencies must follow. I described illegal and legal tactics that debt collection agencies use to collect.
I pointed out that most collection agents know that it is imperative to collect on your accounts as soon as possible. Many will ask you why you can’t pay today, and many will attempt to manipulate your emotions or insinuate that you are fiscally irresponsible to upset you into agreeing on a payment. After a frustrating and upsetting phone call with a specific debt collector, this agency employee may put you on the phone with a supervisor, and you may be prone to agree to something that you ordinarily would not agree to.
As a general rule, debt collection agencies are slow to report that an account has been paid or transferred to a different agency, so it is imperative after you pay that you get proof of payment. In the future, before an account goes delinquent, if you have missed one or two payments, contact your creditor before they send your account to collections. Many times a payment plan can be worked out.
Best case scenario, you can predict that you won’t be able to pay and call your creditor in advance. Advise them that you don’t think you will be able to make payment and request if there is any way anything can be worked out. Many times, in situations like this, an agreement can be made without any penalties or late charges.
Find a bad debt collection solution with the help of an accounts receivable collection agency. Mallory Megan writes articles on credit debt collection agencies. Also published at Collection Agency Basics Part Five: Getting Proof Of Payment And Avoiding Future Phone Calls.
Related posts:
- Collection Agency Basics Part Six: Advice For Debtors
- What Is A Collections Account? Collection Agency Basics Part One
- When A Collections Agency Is On The Phone, A Methodical Approach Is Best
- Tactics A Debt Collector Uses And What To Do After You Have Paid: Debt Collection Basics Part Four
- Legal And Illegal Tactics A Debt Collector Will Use To Collect: Debt Collection Basics Part Three
- Debt Collectors Working From Home May Be A Reality In The Future
- I Have A Collection Agent On The Phone! What Now?
- Hiring A Collection Agency
- How Does A Collection Agency Work?
- How To Hire A Collection Agency: Turning Your Accounts Receivable Into Cash
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