Debt collection agencies are often hired to collect on delinquent accounts from customers who have not paid for goods or services rendered. Creditors may also contract them to help recover unpaid debts owed by people with a history of late payments.
Debt recovery Brisbane has a level of service provided that can vary based on the agreement between the debt collector and debtor, but typically includes one or more of the following: phone calls, letters, emails, in-person visits, or even legal action such as filing a lawsuit against you in court. This blog post will explore what debt collectors do and the different services provided to clients by these agencies.
What services do they provide?
1 Debt Management: One of the most common services debt collectors offer to help customers create a plan to repay their debts. This usually includes working with creditors to develop a payment plan that is affordable for the debtor and allows them to get caught up on their payments over time.
2 Credit Management: Debt collectors can also help customers improve their credit by negotiating with creditors on their behalf. This includes removing negative items appearing on your report or agreeing to remove them after they have been paid off, establishing repayment terms for the delinquent account, and setting up a payment plan that will be reported to all three major credit bureaus.
3 Debt Collection: The primary purpose of a debt collector is to recover money owed to someone else. This can be done through negotiations with the debtor, legal action, or selling the delinquent account to a third-party collection agency.
4 Debt Settlement: This is a process where the debtor and creditor agree to settle the debt for less than what is owed. Debt collectors can often help facilitate this by working with the creditor to reduce the amount owed or coming up with a payment plan that will allow you to repay the debt over time.
What is the process for hiring a debt collector?
The process for hiring a debt collector usually starts with the creditor contacting the agency and providing them with the details of the delinquent account. The debt collector will then review the information and decide if they are interested in pursuing it. If they are, they will typically send a letter to the debtor outlining their services and what is required to hire them. This includes an upfront fee, usually a percentage of the debt amount or flat rate, whichever is greater.
If you decide not to hire them after receiving this letter, they can no longer pursue collection on your behalf and must notify any third-party companies where the account has been sold. However, if you do choose to work with them, they will typically take over all communication with the creditor and work to get you caught up on your payments.
In conclusion, debt collection agencies are hired to recover money owed by customers who have not paid their bills. They can do this through various means, including helping you repay your debts over time or filing a lawsuit against you if necessary.