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 manager of a local collection agency:
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 seek a collection agency's help for 6 months to 2 years after the debtor is delinquent.  
* A Creditor may not employ a collection agency for 6 months to 2 years after the debtor is delinquent.  
* Reasons why debtors do not pay are ''poor money management skills, illness, and lack of desire to pay'' what is owed.
* 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.   
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