Debt Collection Agencies – the Online Way

July 18, 2010 By Law Library Leave a Comment

Every man and his dog either seem to be in debt or owed money these days so is it any wonder that debt collection has evolved with the times to offer people comprehensive services with a few clicks of a mouse button.

What comes to your mind when you think of debt collection agencies? Perhaps you imagine a hollywood stereotype gangster knocking on your door, instrument of destruction in hand ready to scare you into submission or remove your belongings without any prior warning.

Regardless of which side of the fence you happen to fall on, either the debt collector or the debtor it must be reassuring to know that this hollywood type image is not actually the norm and that some debt collection agencies are in reality far more user friendly.

A relatively new way of collecting debts is to possibly use an online debt collection agency, which often offer to remove all the of the complications and hidden costs, instead doing all of the collecting for you and taking part of the eventual collection as their fee often referred to as no win no fee debt collection. Peace of mind can result from knowing its being taken care of for you and that you wont rack up huge legal bills and still not get your debt recovered.

As an individual or as a business these online debt collection agencies offer up new avenues for recouping owed money as they can take a step back with confidence knowing that their issues are being dealt with professionally and privately whilst still being kept informed of each step in proceedings. Offering full support and a wide range of services(e.g. debtor tracing, credit checking) within the debt collection field, with varying but clear and simple pricing structures, these debt collection agencies are specifically designed to provide stress free solutions to an ever growing problem.

Some debt collection agencies have already had great success in collecting debts within twenty four hours of the initial sign up and claim to have successful debt collection rates as high as 85 per cent.

It appears that as the world spins into debt, collecting of personal or business debts need no longer be as daunting as they once were thanks to the many online debt collection agencies that are springing up.

Filed Under Debt Collection Tagged With Agencies, Collection, Debt, Online

Debt Collection Agencies : Understanding a Growth Industry

July 8, 2010 By Law Library Leave a Comment

Consumers in the UK collectively owe in excess of £1 trillion according to recent media reports. Much of this debt is due to borrowing on credit cards, bank loans and mortgages; but as consumer borrowing increases, so does the amount of people encountering financial difficulty in paying back what they owe.

As a result, more and more financial agreements are becoming delinquent and are subsequently passed from the original lender to a debt collection agency. Debt collection agencies are businesses that collect past-due bills and accounts receivable for other persons or businesses in exchange for a fee. Collection agencies charge for their services in one of three ways: a flat fee, a percentage of the amount recouped, or more commonly through a direct purchase of the delinquent account.

Attempts to collect small or medium sized debts are best done using debt collection agencies that charge a flat fee for their services. These agencies are likely to work just as hard at collecting a small debt as they are in trying to collect a larger debt.

The third option is rapidly becoming the most popular among the larger financial institutions as they seek to cut their losses and free up resources away from debt collecting. In most cases, these financial institutions have large portfolios of outstanding debt, and selling it on to debt collection agencies allows them to recoup some of the money loaned out and free up costly resources away from chasing the delinquent debt.

In order to collect due debts most collection agencies will use one of three tactics: letters, telephone calls, litigation. Typically, debt collection agencies will begin the collection process by sending a series of notification letters, often allowing the debtor to enter into negotiations to repay the debt. These letters are often called ‘demand’ letters. The final notification letter that is sent out generally warns the debtor that if no contact is made prior to a certain date then the debtor’s name – whether it be an individual or a company – will be passed onto a more intensive method of debt collection.

In addition to letters, some collection agencies might also phone the debtor directly, again allowing the debtor to work with the agency to agree a plan to repay the debt. Telephoning a debtor at home can sometimes have the best results in collecting a delinquent debt. The third method, litigation, is a last resort and is generally only used when all other attempts to reclaim the debt have failed. Litigation involves taking the debtor to a small-claims court and could eventually result in the debtor being made bankrupt, depending on the amount of debt owed.

Other services provided by debt collection agencies include locating absent debtors who can no longer be reached at the address or telephone number listed on their accounts. Some agencies also offer ‘doorstep’ collection, whereby they employ a number of collectors to visit debtors in their homes to arrange the repayment of debts owed.

Debt purchasing is becoming big business in the UK with many specialist debt collection agencies, such as Capquest Debt Recovery, providing advice on how best to proceed with the recovery of unpaid debt. Should you have a need to employ the services of a debt collection agency make sure that they are members of the Credit Services Association, a regulatory body associated with the debt collection and financial industries.

Filed Under Debt Collection Tagged With Agencies, Collection, Debt, Growth, Industry, Understanding

Fair Debt Collection Practice!

June 28, 2010 By Law Library Leave a Comment

Striving hard to get your loan payments back? All your debt collection letters sent are unheeded? Thinking of hiring people to recoup at least a portion of your loan amount? You can opt for Debt Collection Company and get your loan amount covered by a legal way.

Fair Debt Collection Practice!

Debt Collection Agency uk follows Fair Debt Collection Practices in collecting loan amount. Debt Collection Agencies can only contact you during sensible working hours and cannot trouble you while you’re at your work place. No collection agency can contact you late at night or contact your friends when it’ s been clearly mentioned not to call them in your absence.

A Debt Collection Protection begins its process the moment we receive a referral from you on the debtor, we send a demand letter to the borrower on the same day, this is followed by a phone call. The borrower will then be traced back and contacted. However, according to collection debt Fair Practice, no debt collection agency uk can use harassing techniques to collect debts.

Debt Collection Protection, protects you from any kind of cruelty, abusiveness, impolite use of language or otherwise engage in acts that would be considered unprofessional. They are also forbidden by law to lie or make false statements for the purposes of collecting a debt and must be clear about the amount of a debt at the beginning of all communication.

Always remember that debt collection agencies are paid by their clients – the organizations on behalf of which they are collecting the debt. This means that they should NEVER collect more than the amount which you owe to the company they are working for.

As per Fair debt collection practices always correctly identify themselves to you and may not threaten you. If you have any questions, they should do their best to answer them in a professional manner.

Debt Collection Help ensures that we’ll settle down all your accounts in full. There would no more be instances of payment defaults any longer at least if you choose an online debt collection agency uk. If situation demands a repayment plan will be chalked out on your behalf and sent to the debtor or the borrower on your consent.

Just ensure that, you clearly give the debt collection agency, all the instructions in the referral files, with all the necessary details of your debtor. Fair debt collection practices are in accordance to your clearly laid down instructions and agencies collect your unpaid debts based on your instructions.

Filed Under Debt Collection Tagged With Collection, Debt, Fair, Practice

Advantages of Online Debt Collection Services

June 8, 2010 By Law Library Leave a Comment

Sometimes collecting a debt, whether it be for yourself or for your company, is rather difficult. One way to relieve the stress of collecting a debt and feeling comfortable and relaxed while trying to get your money is to allow an online debt collection agency do all the work for you. One such online debt collection agency is Legalitum. They offer an online debt collection service that is fast and easy to use. You should keep in mind that there are a variety of advantages to using an online debt collection Agency.


It only takes a few minutes to sign up for their online debt collection services. All you have to do is fill out a short form online that includes your contact information and your debt collection information for yourself or for your company. The simple interface and speed of use are some of the things that make this so attractive.


Another advantage of using this type of debt collection service is that no matter how large the debt, you will only have to pay a flat rate fee of 50 pounds plus the VAT. This is a subscription based flat fee that is charged. Other financial perks are a commission based system, rather than taking your money without getting your debt money. When able to recover your debt then you will have to pay a small percentage which will serve as the commission, but if they are unable to collect your debt then you will not have to pay anything.


If you are concerned about even paying the subscription fee, you do not have to concern yourself. The final advantage that this online debt collection agency provides is an excellent debt recovery success rate. In 2007 alone, oline debt collection figures show a recovery rate of 85% of the debts that passed through the system and this figure is likely to rise this year. You are kept informed every step of the way so that you are always aware of what is going on in your debt collection process. This is a highly effective debt collection services that guarantees results.


Updates are available throughout the simple process, via email, services lines and call back options for extra peace of mind.


As pointed out above there are numerous advantages to using an online debt collection agency and their services. You should take advantage of them if you have debt collection problems.

Filed Under Debt Collection Tagged With Advantages, Collection, Debt, Online, Services

Fair Debt Collection – Know Your Rights!

May 29, 2010 By Law Library Leave a Comment

 


FAIR DEBT COLLECTION

If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a “debtor.” If you fall behind in repaying your creditors, or an error is made on your accounts,

you may be contacted by a “debt collector.”

 

You should know that in either situation the Fair Debt Collection Practices Act requires that debt collectors treat you fairly by prohibiting certain methods of debt collection. Of course, the

law does not forgive any legitimate debt you owe.

 

This brochure provides answers to commonly asked questions to help you understand your rights under the Fair Debt Collection Practices Act.

 

What debts are covered?

 

Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

 

Who is a debt collector?

 

A debt collector is any person, other than the creditor, who regularly collects debts owed to others. Under a 1986 amendment to the Fair Debt Collection Practices Act, this includes attorneys who collect debts on a regular basis.

 

How may a debt collector contact you?

 

A collector may contact you in person, by mail, telephone, telegram, or FAX. However, a debt collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer

disapproves.

 

Can you stop a debt collector from contacting you?

 

You may stop a collector from contacting you by writing a letter to the collection agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact. Another exception is that the agency may notify you if the debt collector or the creditor intends to take some specific action.

 

May a debt collector contact any person other than you concerning your debt?

 

If you have an attorney, the debt collector may not contact anyone other than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live and work. Collectors usually are prohibited from contacting such permissible third parties more than once. In most cases, the collector is not permitted to tell anyone other than you and your attorney that you owe money.

 

What is the debt collector required to tell you about the debt?

 

Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

 

May a debt collector continue to contact you if you believe you

do not owe money?

 

A collector may not contact you if, within 30 days after you are first contacted, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

 

What types of debt collection practices are prohibited?

 

Harassment.  Debt collectors may not harass, oppress, or abuse any person. For example, debt collectors may not:

 

l     use threats of violence or harm against the person, property, or reputation;

 

l     publish a list of consumers who refuse to pay their debts (except to a credit bureau);

 

l     use obscene or profane language;

 

l     repeatedly use the telephone to annoy someone;

 

l     telephone people without identifying themselves;

 

l     advertise your debt.

 

False statements.  Debt collectors may not use any false statements when collecting a debt. For example, debt collectors may not:

 

l     falsely imply that they are attorneys or government representatives;

 

l     falsely imply that you have committed a crime;

 

l     falsely represent that they operate or work for a credit bureau;

 

l     misrepresent the amount of your debt;

 

l     misrepresent the involvement of an attorney in collecting a debt;

 

l     indicate that papers being sent to you are legal forms when they are not;

 

l     indicate that papers being sent to you are not legal forms when they are.

 

Debt collectors also may not state that:

 

l     you will be arrested if you do not pay your debt;

 

l     they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so;

 

l     actions, such as a lawsuit, will be taken against you, which legally may not be taken, or which they do not intend to take.

 

Debt collectors may not:

 

l     give false credit information about you to anyone;

 

l     send you anything that looks like an official document from a court or government agency when it is not;

 

l     use a false name.

 

Unfair practices.  Debt collectors may not engage in unfair practices in attempting to collect a debt. For example, collectors may not:

 

l     collect any amount greater than your debt, unless allowed by law;

 

l     deposit a post-dated check prematurely;

 

l     make you accept collect calls or pay for telegrams;

 

l     take or threaten to take your property unless this can be done legally;

 

l     contact you by postcard.

 

What control do you have over payment of debts?

 

If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.

 

What can you do if you believe a debt collector violated the law?

 

You have the right to sue a collector in a state or federal court within one year from the date you believe the law was violated. If you win, you may recover money for the damages you suffered. 

Court costs and attorney’s fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever is less.

 

Where can you report a debt collector for an alleged violation of the law?

 

Report any problems you have with a debt collector to your state Attorney General’s office and the Federal Trade Commission. Many states also have their own debt collection laws and your Attorney

General’s office can help you determine your rights.

 

If you have questions about the Fair Debt Collection Practices Act, or your rights under the Act, write: Correspondence Branch, Federal Trade Commission, Washington, D.C. 20580.  Although the FTC generally cannot intervene in individual disputes, the information you provide may indicate a pattern of possible law violations requiring action by the Commission.

 

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Filed Under Debt Collection Tagged With Collection, Debt, Fair, Know, Rights
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