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Debt Relief: Difference between revisions
→Collection Agencies
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*Collection agencies charge a percentage o | *Collection agencies charge a percentage o | ||
f what is collected as a fee for the service. | f what is collected as a fee for the service. | ||
*The methods | *The methods u | ||
sed by credit agencies to collect unpaid accounts are telephone calls to the debtor, [[Debt Relief:Definitions#Sue or suit|lawsuits]], and [[ Debt Relief:Definitions#Garnishee or Garnishment|garnishments]]. Collection agencies will provide a pay plan as well. | |||
*If the debtor does not pay using a pay plan, the collection agency will [[Debt Relief:Definitions#sue or suit|sue]] or [[Debt Relief:Definitions#garnishee|garnishee]] the wages until the debt is settled. | *If the debtor does not pay using a pay plan, the collection agency will [[Debt Relief:Definitions#sue or suit|sue]] or [[Debt Relief:Definitions#garnishee|garnishee]] the wages until the debt is settled. | ||
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[[Debt Relief:Definitions#Bankruptcy|Bankruptcy]] is recommended by collection agencies if the debt is severe and there are personal reasons for not being able to pay. | [[Debt Relief:Definitions#Bankruptcy|Bankruptcy]] is recommended by collection agencies if the debt is severe and there are personal reasons for not being able to pay. | ||
Credit counseling is also recommended. | Credit counseling is also recommended. | ||
A collection agency is a company that is contacted by the original lender to collect past due and defaulted accounts. (www.spu.edu) | |||
The Federal Trade Commission states that 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, you will probably be contacted by a collection agency or a "delinquent debt collector". | |||
Mike Ryan, President of NACM Southeast, wrote an article on "Qualifying Your Collection Agency". You, as an owner in a business have to be careful of what collection agency you choose. You have to ask yourself these questions: What does the agency know about your business? Can you rely on them to handle your accounts honestly, ethically, and effectively? Does the agency understand you may do business with this client again in the future? (Ryan, Mike. 106.8) This is the kind of agency that can legimately collect your money. | |||
The FTC also gives a few tips on a fair debt collection. There is an act that requires that debt collectors treat you fairly and prohibits certain methods of debt collection. This is known as the Fair Debt Collection Practices Act. This does not mean that your debt will just go away. You still have to face this debt head on. This just protects your rights. | |||
You can avoid these agencies all together by simply managing your money right. Self-Help may be the Best Help. | |||
== Project Documents == | == Project Documents == | ||