There are businesses today that specialize in collecting debts on behalf of creditors. Such businesses are called collection agencies, debt collecting agencies, or simply debt collectors. The can be hired by individuals or companies to pursue debts from individuals or business entities. They charge a fee for service rendered. Fee is usually contingent-based or a percentage of what is supposed to be collected. When one needs a professional commercial collection agency San Diego should be the place to prioritize.
Categorization of agencies can be done under three main types, that is, debt buyers, third-party agencies, and first-party agencies. If the original company that was owed is the owner of the debt collector, the agency is called a first-party. Otherwise, if the creditor and collector have no relationship whatsoever besides the creditor being a client to the collector, the collector is called a third-party. The name third-party is used because the company is usually an outsider as far as the agreement between the debtor and creditor goes.
Debt buyers usually buy debts at lower percentages than its real value. They then attempt to recover the debt. Different countries have different regulations and rules that govern how the various types of debt collectors work. Some countries even use different names to refer to the various types. What may be legal in one country may be completely illegal in another one.
The history of the business of collecting debts is very long and goes back to ancient civilizations. Back in ancient days, individuals who failed to pay their debts were made slaves together with their wives and children. The sum owed was therefore collected in the form of labor derived from the slave. Debts could be passed to the next generations, resulting in debt slavery. Other societies also exercised debt forgiveness where all slaves were freed of their obligations to their masters.
Methods of collecting debt have changed a lot in current times. In the United States, the government enforces certain rules that prevent mistreatment of the debtor by a debt collecting service. There have been several cases that involved mistreatment of debtors by highly motivated debt services. As a result rules have been set to avoid such. For instance, calls cannot be made to debtors if the debtor will pay the charges. There are rules governing the time, where, and to whom calls can be made.
The use of deceptive language as a strategy of making debtors to settle debts is forbidden. Deceptions include impersonation and use of arrest to threaten debtors. In addition, collectors cannot use obscene language when speaking to debtors. Collectors are supposed to identify the company they work with, reason for calling, and their name when the debtors requests to know during a call.
Most firms have a deep grasp of local laws, which allows them to focus on local cases. Technicalities presented by international cases make them unattractive. Solving international cases may call for understating foreign legal systems and languages. Other challenges emerge from time differences.
Debt collectors may sometimes be given permission to contact neighbors or relative of the debtor to inquire about their whereabouts. No discussion about the debt is allowed to other people besides a debtor, their spouse, or their attorney. The collector can only call other people in an attempt to locate the debtor and not to talk about debt unless debtors have given permission.
Categorization of agencies can be done under three main types, that is, debt buyers, third-party agencies, and first-party agencies. If the original company that was owed is the owner of the debt collector, the agency is called a first-party. Otherwise, if the creditor and collector have no relationship whatsoever besides the creditor being a client to the collector, the collector is called a third-party. The name third-party is used because the company is usually an outsider as far as the agreement between the debtor and creditor goes.
Debt buyers usually buy debts at lower percentages than its real value. They then attempt to recover the debt. Different countries have different regulations and rules that govern how the various types of debt collectors work. Some countries even use different names to refer to the various types. What may be legal in one country may be completely illegal in another one.
The history of the business of collecting debts is very long and goes back to ancient civilizations. Back in ancient days, individuals who failed to pay their debts were made slaves together with their wives and children. The sum owed was therefore collected in the form of labor derived from the slave. Debts could be passed to the next generations, resulting in debt slavery. Other societies also exercised debt forgiveness where all slaves were freed of their obligations to their masters.
Methods of collecting debt have changed a lot in current times. In the United States, the government enforces certain rules that prevent mistreatment of the debtor by a debt collecting service. There have been several cases that involved mistreatment of debtors by highly motivated debt services. As a result rules have been set to avoid such. For instance, calls cannot be made to debtors if the debtor will pay the charges. There are rules governing the time, where, and to whom calls can be made.
The use of deceptive language as a strategy of making debtors to settle debts is forbidden. Deceptions include impersonation and use of arrest to threaten debtors. In addition, collectors cannot use obscene language when speaking to debtors. Collectors are supposed to identify the company they work with, reason for calling, and their name when the debtors requests to know during a call.
Most firms have a deep grasp of local laws, which allows them to focus on local cases. Technicalities presented by international cases make them unattractive. Solving international cases may call for understating foreign legal systems and languages. Other challenges emerge from time differences.
Debt collectors may sometimes be given permission to contact neighbors or relative of the debtor to inquire about their whereabouts. No discussion about the debt is allowed to other people besides a debtor, their spouse, or their attorney. The collector can only call other people in an attempt to locate the debtor and not to talk about debt unless debtors have given permission.
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