Common Myths About Using a Collection Agency

Credit Management Company

Therefore, many people find themselves encountering collection agencies at one point or another. Unfortunately, much of what people “know” about the debt collection industry relies more on myths than facts. Read on to discover all you need to know about debt collection agencies.

How Effective Are Collection Agencies?

Nexa Collect

Collecting outstanding debt isn’t an easy process. Companies will generally try to collect on their outstanding accounts internally before passing their most egregious cases on to an external debt collection agency. Collection agencies are experts in debt recovery.

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How Effective Are Collection Agencies?

Nexa Collect

Collecting outstanding debt isn’t an easy process. Companies will generally try to collect on their outstanding accounts internally before passing their most egregious cases on to an external debt collection agency. Collection agencies are experts in debt recovery.

Hiring the right collection agency has its advantages

American Profit

In the not too distant past, a business that hired a collection agency was doing so as a last resort. They had customers that were not paying, they called, sent letters, and decided that the only thing they could do was to get rid of that customer and send them to collections.

Selling your debt vs. hiring a debt collection agency

True Accord

Debt sales play a unique role in the collections industry, as choosing between selling to a debt buyer and placing accounts with a third-party debt collector can make or break a brand. All debt buyers are not created equally, as some may also own fully functional debt collection agencies.

A Comprehensive Overview of How Commercial Debt Collection Agencies Work

Debt RR

Sometimes, that debt gets out of hand and businesses find themselves on the receiving end of calls from commercial debt collection agencies. Here’s everything businesses need to know about commercial debt collection agencies and how to manage communication without disrupting day-to-day operations. What Do Commercial Debt Collection Agencies Do? Debt collection agencies are organizations that attempt to collect debt on behalf of other businesses.

Top 3 Complaints Against Debt Collection Agencies

National Service Bureau

Last week we wrote about 2014 CFPB complaints against debt collection agencies. Of these, 1,346 related to credit card collections and 1,057 had to do with healthcare collections. Among the required disclosures are the present creditor’s name, the original creditor’s name upon request, the amount of debt, and a statement that the debt is assumed valid unless disputed within 30 days. #2:

The Effectiveness of Debt Collection Agencies

Credits Inc

Creditors give loans to millions of citizens, and thus credit companies are too busy to follow up on the debtors. For this reason, creditors are hiring debt collection agencies to collect debts that are 60 days past the agreed period. Therefore, the agencies act as middlemen collecting any delinquent loans. Debt collection agencies communicate to debtors via calls, letters, or emails. government collection agency.

The 4-1-1 on the Consumer Credit Fairness Act

Payment Savvy

What does the law entail, and how will it affect your collection operations? It enhances consumer rights in the event of a debt collection dispute.

The CFPB Publishes the Remainder of its Final Debt Collection Rule – Here’s What You Need to Know

Consumer Financial Services Law

Enloe On December 18, 2020, the CFPB published the remainder of its Final Debt Collection Rule (the “Rule”) highlighting its crown jewel - the provisions centering around debt validation notices. Communications in Connection with Debt Collection) to allow debt collectors to communicate with the deceased consumer’s spouse, parent (if the consumer is a minor), legal guardian, executor or administrator, and confirmed successor in interest (as defined Regulation X). By Caren D.

Top Two Complaints in Medical Collections

National Service Bureau

Medical collections are a particularly difficult field - they demand tact, human dignity, and effective collection tactics all at the same time. We’ve got an entire blog post detailing how medical collections are distinguished from other debts, but in this one, we’ll focus on the top two complaints generated as a result of collection agencies pursuing medical debt. This is an important caveat for anyone in the debt collection industry.

Class-Action Complaint Accuses Collector of Violating FDCPA By Not Explicitly Detailing to Where Disputes Should be Sent

Account Recovery

United Collection Bureau

District Court Takes Expansive View of "Deceptive or Misleading" Practices under FDCPA

Consumer Financial Services Law

By Zachary Dunn The FDCPA prohibits a debt collector from using “any false, deceptive, or misleading representation” in connection with the collection of a debt. and Bank of America responded by placing Islam’s account with American Recovery Service (“ARS”) for collection. at *9 (“The courts are to some extent simply burdening the collection industry with a continuing portfolio of litigation that potentially raises the cost of credit for all consumers.”).

Debt Validation Notice Format Recommended by CFPB

Nexa Collect

Most collection agencies will add about additional 2 weeks to account for mailing delays and holidays. This format is located here: CFPB Debt Collection Validation Notice R19 ( as of Nov 2021). I want you to send me the name and address of the original creditor.

Debt Collection through Email, SMS and Social Media

Nexa Collect

Several collection agencies have been using electronic mediums like emails, social media platforms, and SMS to contact debtors. This approach is significantly different from traditional collection calls and letters. Some agencies don’t do anything, which is not ideal.

What Should You Know If You Have Debts In Collections?

Taurus Collect

Having debts in the collection primarily means that a third party is pursuing you to retrieve payments for your debts on behalf of your creditors. Debt collection is a process that gives debtors certain rights that debt collection agencies must respect.

How Do Debt Collection Companies Operate?

Taurus Collect

The debt collection process involves recovering debts from the borrower who has initially failed to repay or recover payments on accounts that are past their due date. When asked about “what collection agencies do?”, The name of the original creditor.

4 Ways To Remove Collections From Your Credit Report

Better Credit Blog

A collection account will lower your credit score and can generally stay on your credit report for up to seven years. To be clear, you can pay a collection and still have it shown on your credit report. The credit reporting bureaus can just change the account to a “paid collection.”.

Things Debt Collectors Are Forbidden to Do

Sawin & Shea

You may feel as if no one is on your side, but you do have some protection from collection agencies. The FTC makes sure that the FDCPA (Fair Debt Consumer Protection Act) is followed by collection agencies. There are approximately 7,000 collection agencies in the U.S.

Dealing with Debt Collectors

Debt Free Colorado

When collecting a debt from you, collection agencies must adhere to federal and state rules. Fortunately, the federal Fair Debt Collection Practices Act (FDCPA) protects all states. You have rights to help you gain control over your debt collection interactions.

How to Remove TransWorld Systems From Your Credit Report

Better Credit Blog

If you fall into hard times, the inability to pay off your credit card bills or student loans can result in your debts being transferred to a debt collection agency. Especially when credit reporting agencies reduce your score by up to 50 points.

Sample Letters to Creditors

Better Credit Blog

Repairing your credit could mean writing a lot of letters to creditors and the three credit bureaus — dispute letters, debt validation letters, goodwill letters. Medical Collection Removal Letter. original creditor or name of collection agency if the account was sold].

Allowing Clients to Hear Debt Collection Calls: Is it ok?

Nexa Collect

By law, all debt collection calls initiated by a collection agency must be recorded and preserved for three years after the date of the call. The client may demand that they want to hear the recording of that collection call.

What is Commercial Debt?

Debt RR

Failure to pay them off promptly, or even paying the amount due when the time comes, could result in a civil lawsuit for commercial debt collection. Due to this, the original creditors will reach out to you to obtain their due payments. However, if you do not pay, you could either assign the debt, sell the debt to a commercial debt collection agency, or get sued for the commercial debt.

How To Remove Portfolio Recovery From Your Credit Report

Better Credit Blog

Portfolio Recovery Associates, LLC, is a collection agency that buys old debts from lenders and companies that have been unable to collect the debt themselves. Companies can still make a small amount of money by selling off their old debt to third-party collection agencies.

3 Ways To Remove Charge-Offs From Your Credit Report

Better Credit Blog

Here are 3 proven methods to remove a charge-off from your credit report: Negotiate A “Pay for Delete” & Pay The Creditor To Delete The Charge-Off. Offer To Pay The Creditor To Delete The Charge-Off. Some creditors will claim they can’t legally remove the charge-off.

Helpful Debt collection FAQs

Taurus Collect

Debt collection is a legitimate business that can involve challenging & confusing issues. Debt collectors typically work with debt-collection agencies, though some may operate independently. A debt collector cannot collect debts until their substantiation is established.

What Is Debt Collection?

Taurus Collect

Debt collection is the approach of pursuing payments of debts owed by different entities (individuals or businesses). It occurs when a collection agency or a company attempts to collect past-due debts from borrowers.

How To Remove LVNV Funding LLC From Your Credit Report

Better Credit Blog

LVNV Funding is a collection agency notorious for suing people whose debts they have purchased—if so, you may be wondering how to remove LVNV Funding from your credit report. Debt collectors, including LVNV Funding, oftentimes use questionable tactics to collect on debts.

FDCPA: 6 Things to Know About Regulation F

The Kaplan Group

With the new rules, collection agencies can contact consumers more frequently. They can place up to seven debt-collection phone calls per week (and under some circumstances even more), as well as send an unlimited number of text and email messages and private social media posts.

What to Know About Expanding Your Business into First Party Collections

PDC Flow

Many debt collection agencies are looking for business expansion opportunities to bring in more revenue. As a result, first party collection and extended business office (EBO) services are becoming more popular offerings. Where collected money goes.

How To Remove Negative Items From Your Credit Report

Better Credit Blog

Whatever you’re dealing with, late payments, collections, charge-offs, or foreclosures, the following techniques can clean up your credit quickly. Collection). This is most effective when you’re trying to remove late payments, paid collections, or paid charge-offs.

What Is Zombie Debt and Why Is It a Problem?

Credit Corp

The most common cases of zombie debt involve collection activities. Here’s one example of how a zombie might rise with help from a collection agency. The original lender or collection agency fails to collect within the statute of limitations.

Katabat Supports RMAI’s 2020 Annual Conference with Gold Sponsorship

Katabat

January 23, 2020 (Sacramento, CA) – Katabat, a leading cloud-based debt-collection software provider, will serve as a Gold Sponsor of this year’s RMAI Annual Conference.

How to Remove Hunter Warfield from Your Credit Report

Better Credit Blog

Collection accounts on your credit report can damage your credit score for up to seven years, even if you pay them off. Hunter Warfield is a medium-sized collection agency out of Tampa, Florida. It is for this reason that many people dread working with collection agencies.