Commercial Collection Agency Laws

Debt are a growing part of concern for organizations the world over, which will be the reasons why many of them just take the aid of collection agencies. Collection agencies not only work more efficiently but more professionally to get back your debts, while you are able to give attention to your organization. Continue reading to know more.

Business operations are getting difficult with each passing day and therefore, there's dependence on expertise and greater professionalism in dealing effectively with all facets of a company. In such a circumstance, recurring problems like debt may cause a serious problem for a company. It is an issue that most corporations need to handle. However, if the degree of the accumulated debt increases, it can mean huge losses to the business. Attempting to handle it requires not just time and effort but additionally expertise and experience. Neither do the businesses have very much time nor the specialization to cope with bad debts. Also, it is not uncommon to have particular debtors that are not reachable. It will not make any sense to attempt to find these customers which will simply end up in wasting your time, therefore, the need for getting a professional collections agency who are able to undertake the responsibility for the hassling process from you, assuring the greatest results, so you can switch your attention from the late payments and focus on the core work, that is your business.

Why is the debt collectors so efficient in collecting your debts? Since assortment of debts is the main work of the collection agency greater time will be spent far by them than you can on the late records. They have got the knowledge helping to make most of the difference between their methods in dealing with the problem and the expertise. They work step by step in a particular fashion, making their best efforts to get the payments as efficiently as possible while being extremely professional in their approach in the whole procedure. This type of professionalism is extremely important in debt collection, because while you want for the obligations, you generally don't wish to spoil your business relationships with the borrowers which are necessary in the area of business. It is yet another important aspect of getting professional support rather than looking to get right back your debts on your own.

A collection agency generally, first tries to contact the debtor by way of a series of notification letters called demand letters giving adequate time to the debtor to answer and also offering the choice to enter in to discussions. If the person fails to respond to the characters in the given time frame, the person is then personally contacted. The person understands that the subject is now severe and direct contact with the debtor usually results in a positive reaction as firstly it's not really a excellent experience to be called by a debt collection agency. Subsequently, the consumer can sometimes be given some options to make the cost by negotiations. If you have still no response, then legal action can be taken from the debtor as a final location, together with your permission. Legal action is only performed when all the efforts fail and is not used under normal circumstances.

With all these possible attempts, there is little reason why your debts wouldn't be repaid. Firms throughout the world take the services of collection agencies to efficiently get their expenses. For an organization in Canada, an efficient collections agency Canada can offer the correct answer, as it recognizes the laws of the area.

Credit Authority Corp is a Debt Collection Agency Firm.Get hold of them Today.

Posted in the Business & Finance category.

Originally Posted by alwang137 Monday, June 4, 2012 - 03:33

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What Debt Collection Agencies can and cannot do
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What Debt Collection Agencies can and cannot do

FAQ About Debt Collection LAWS and Consumer Rights
Can a Debt Collector leave messages on my answering machine? A Collection Agent can leave messages on your personal answering machine until you tell him to stop. A debt collector cannot discuss your debt with 3rd parties, which means that he cannot leave messages about your debt on your employer's Voice Mail or a relative's answering machine. He can leave his or her name and number only, If you want the calls to cease at your residence you must send a cease and desist letter, If you want the calls to stop at your place of employment you may do so verbally.
Can a debt collection agent call me late at night? No, collection agents can only make contact with you by telephone between the hours of 8:00 a.m. and 9:00 p.m. Early morning and late night calls are prohibited under the Fair Debt Collection Practices Act(FDCPA). A debt collector is charged with having knowledge of what time it is in each area for the assurance of not calling anyone outside the allowable hours allowed by the (FDCPA).
Is a verbal payment arrangement with a collector enforceable? Almost certainly not. You should get all agreements in writing, particularly since the collection industryhas a high-turnover rate. Another collector might take over your account or your account might be sold to or Outsourced to a third party Collection Agency. Bear in mind that even a written agreement might not be enforceable if your account is sold to another collection agency. But you should get all agreements in writing anyway to protect yourself if it gets to a law suit. A good written agreement (1) sets forth all material stipulations and conditions; and (2) is signed by both parties; and (3) is dated. 
Does the collector have to accept my partial payments? No, they do not and a lot of of them will say that they will not accept a partial payment. collectors want you to send them a lump sum payment and they do not care if you have to borrow it from a family member, skip your automobile payment or take a cash advance from your credit card. So they use very aggressive methods to scare you in to repaying the debt in full as quickly as possible. But the smarter thing to do is to pay them only what you can afford to pay them. Keep paying your house and automobile payments, don't borrow money from family members or your credit card and pay them only what you can manage to pay for each month. Send it in each month even if they keep sending it back. Keep confirmation that you've been trying to send them money. This will considerably reduce your odds of being sued, as most collection attorneys know that a judge, when presented with proof that you tried to pay the debt, will scream at the plaintiff for wasting his time with an unnecessary suit when the defendant was trying to pay the debt. Eventually, most collectors will give in and accept the partial payments.
Is my agreement enforceable against a new collection firm? It isn't that uncommon to find yourself dealing with a different collection agent or new collection agency when you owe a balance. For example, if the original creditor gets rid of the previous collection agency and hires a new one, you might unexpectedly find yourself getting collection message or calls and letters despite the fact that you have a payment agreement with the previous collection agency. The agreement is not enforceable in opposition to the new company unless they decide to accept it; however, sending them a photocopy of it would help you greatly in placing a payment schedule with the new collection agency.
A collection firm keeps intimidating me about a delinquency I do not think I owe. What can I do? Send them a certified letter requesting that they verify the debt. Verifying the debt requires that they send you copies of documented proving that you owe the balance. There is a statutory time governing them, so you need to act as quickly as possible after they make initial contact with you. You can also ask them to stop calling you since you don't believe you owe the debt. Once you have told them this, they are barred under the FDCPA from contacting you to try and collect the balance or putting damaging information on your credit report. They can contact you to tell you they're giving up all collection activity or they're going to take you to court. 
Does the Fair apply to major credit card banks? It applies if they have their Collections Department in-house and to the collection attorneys and professional debt collection companies they hire. Original creditors are regulated by state law; however, the main credit card organizations follow guidelines that closely mirror those of the FDCPA and will comply with your demand to stop calling you you at home and work, etc., just as if you were dealing with a debt collection service. If you believe you have been intimidated by an original creditor, or that the original creditor has done something against the law or threatening towards you, then research your state laws on the subject matter and contact the proper authorities to file a proper complaint. Usually, the Attorney General in your state is the proper authority to contact.
A collection agent told me that he was ready to call my employer and have my wages garnished. Can he do this? Not without a judge's signature. The Constitution of the United States ensures you "due process." This means that a collector must sue you and the topic must be heard before a judge before your wages can be garnished. Your employer will not garnish your wages until he receives an official document from the court ordering him to do so. Remember that most threats of this kind are bluffs; however, if you think the collection agent will carry out the threat, then work out a payment agreement before you get sued. Don't let the matter proceed to this point because a wage garnishment is hard to reverse.

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What Debt Collectors Can and Cannot Do

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Debt Collection Positively Impacts Narional Economy
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New Study Shows Third-Party Debt Collection Positively Impacts the National and State Economies

By ACA International
MINNEAPOLIS, Jan. 30, 2012 -- /PRNewswire-USNewswire/ -- Third-party debt collection has an important impact on America's national, state and local economies, according to a new study by ACA International and global advisory firm Ernst and Young (www.acainternational.org/impact) based on 2010 data.

"These findings reinforce the critical role the third-party debt collection industry plays as a service provider in recovering unpaid consumer debt on behalf of the public, private and non-profit sectors," said ACA International CEO Pat Morris. "Moreover, third-party collectors are actively engaged in their local communities as employers, volunteers, philanthropists and taxpayers."

Key national findings of this landmark survey include:

• Recovering Assets: A total of $55 billion was recovered on behalf of creditor clients. The collection of consumer debt also provides a valuable benefit to American households.  Based on a net of $44.6 billion recovered, third-party debt collection efforts represent $396 in savings on average per household by keeping the costs of goods and services lower.
• Job Creation:  Third-party collection agencies directly employed 148,272 people with a payroll of $5 billion.  Indirectly, the industry influenced creation of more than 300,000 jobs with a payroll of $10 billion.
• Paying Taxes:  Third-party collection agencies and their employees paid $495 million in federal taxes, and $509 million in state and local taxes. The ancillary impact of the industry generated a total $970 million in federal taxes paid and $1 billion in state and local taxes.
• Giving Back: Third-party collection agencies and their employees contributed $85.2 million and volunteered 652,000 hours to charitable community causes.

"Our nation was built on the premise that those who provide credit, goods and services to consumers have the expectation of being repaid," said ACA International President Mark Neeb. "Recovering these debts helps organizations survive; prevents layoffs; keeps cost down and credit, goods and services available; and reduces the need for tax increases to cover government budget shortfalls."

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When you should hire a collection agency!
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FREE COLLECTION TIPS: WHEN YOU SHOULD HIRE A COLLECTION AGENCY:

WHEN YOU SHOULD HIRE A COLLECTION AGENCY:

Most smart business owners and managers realize that hiring a collection agency is always a good decision, but they may not realize that if you have delinquent accounts past due your normal time frame, hiring a collection agency is a must-do.

Debt collection agencies of any type have proven success rates that far succeed first party collection attempts unless you’re a large company with a collection agency as a subsidiary. Your salespeople and marketing staff should be working on business building, not debt collection, and your accounting staff is not properly equipped to spend most of their day on collections.

A collection agency will be even more suited to solve your collection problems because they will have familiarity with thorny issues such as local laws, time differences, customs and language barriers. collections are complicated and should be handled by professionals due to the strict laws than now exist.

This is a job that should be turned over to a collection agency immediately so it can be handled skillfully and promptly. Your return will be much greater, your cash flow will improve because you don’t have to pay for their services until they collect, and your time will be freed up rather than trying to navigate different cultures, legal systems and time zones without a compass.

A collection agency is more suited to do these activities than your own or your own staff because a collection agency will be better suited to handle these issues than you yourself are. A collection agency will employ people who speak the local languages and understand local customs. They will also operate during the best hours for collections calls, as opposed to people who live halfway across the world. In addition, they’ll be cognizant of local laws in a way you just can’t do.

The final and crucial advantage a collection agency has is the option of using local private investigators. Most investigation firms operate on a national basis at best, because this is how the databases they access are organized.

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Hire A Collection Agency Now!!!!

Here are 7 reasons why it's a good idea to outsource your receivables TO A STRONG AGENCY.

1. It Keeps your Best employees free to do what they do best. This improves productivity, and it improves morale.

2.The Outside Collection approach is less expensive than the do-it-yourself approach.

This is true for the following reasons:

You have high salaried people in house handling this problem, add postage, rent, telephone, and employees benefits used or spent while pursuing delinquent files.

This could get very costly!

3. Turning Collections over to an outside collection firm helps distance your firm and your employees from customers negative reactions, helping you maintain goodwill across your customer base.

4. By Subcontracting the debt recovery process you typically will compensate the outside Collection Agency only if they collect your delinquent files.

5. The Chance of Collecting on a delinquent file drops as time goes by. The latest numbers, reflecting activity from a variety of industries and companies, produced these percentages.

Age of Accounts: Collect-ability %

60-120 Days 85%

121-180 Days 60%

181-360 Days 20%

6. You avoid Law suits from any of your employees not being educated or equipped with the right tools or knowing the laws for example FDCPA or HIPAA

any violation on these laws can be very costly.

7. YOU ELIMINATE 100% THE COST OF SALARY FOR THIS TASK.

Credit Authority Corp

Collection Services

• Fast recoveries.
• Ethical Company FDCPA & HIPAA Compliant
• High Success rate due to the personal attention we provide to each file.
• You can expect to retain the goodwill and continued business relations of your delinquent account, usually with improved paying habits.
• Working Capital back in your pocket

When you hire a Collection Firm as Strong As Credit AUthority Corp, you can rest assured we will provide you with excellence in the field of collections,

" Don't worry about collections worry about your business we've got you covered."

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