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Debt Relief:Collection Agency: Difference between revisions
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There are different reasons why the debtor ends up in collections: poor money management skills, illness, no money to pay, and sometimes the debtor just does not care to repay the debt. | There are different reasons why the debtor ends up in collections: poor money management skills, illness, no money to pay, and sometimes the debtor just does not care to repay the debt. | ||
The following information was gathered in an interview with | The following information was gathered in an interview with Sandra Harden, Manager of Bibb Collections. | ||
* A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills. | * A collection agency goes after an individual who will not pay a debt. This debt is anything from medical bills to florists bills. | ||
* A Creditor may not | * A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent. | ||
* | * Bad debt is referred to a collection agency because the debtor has ''poor money management skills, is ill, or has a lack of desire to pay'' what is owed. | ||
*Collection agencies charge a percentage of what is collected as a fee for the service. | *Collection agencies charge a percentage of what is collected as a fee for the service. | ||
*The methods used by credit agencies to collect unpaid accounts are telephone calls to the debtor, lawsuits, and garnishments. Collection agencies will provide a pay plan as well. | *The methods used by credit agencies to collect unpaid accounts are telephone calls to the debtor, lawsuits, and garnishments. Collection agencies will provide a pay plan as well. | ||