Private Debt Collection – The how’s and whys
Debt collection is the process of collecting money that is owed by individuals or businesses (known as debtors) to a certain organization. On non-payment of debts, the party involved can be punished. One can go into debt because of various reasons such as losing a job, health issues, or dispute and disagreement.The concept of debt collection has existed since a very long time even before money became the basic mode of carrying out transactions since it existed even in the times of the barter system.
Various types of debt collection agencies have been in existence since a very long time whose main purpose is the retrieval of debt from individuals or organizations that owe it. Some of the types are –
- First-party agencies – They are often subsidiaries of the same company that the debt is owed to.
- Third-party agencies – They are independent companies whose help is resorted tofor the collection of debts on a company’s behalf for payment of a fee.
- Debt collectors – They purchase a certain debt’s value in percentage and then make an attempt at collecting it.
When you are indebted to a certain company, you will keep receiving calls, messages, and e-mails from them regarding the payment of dues. But they can only call you during the working hours in your country, i.e. you won’t be receiving any calls from them at 12’o clock at night. You will also not receive any calls in succession from them if you avoid them for some reason or are unavailable. They will send you payment notices at your address topush you to clear your debts.
People are generally given a deadline of 30 days to clear their debts before any legal action is taken against them for non-payment. But, if you are unable to pay your dues even after that, then you can get sued by the company or the individual to whom you owe money.
Private debt collection is the type of debt collection which is undertaken by variousprivate debt collection agencies to whom various cases assigned by the IRS, that collect the debt on their behalf through their own means.If an individual has a lot of debt pending, then it will get reflected in his credit score which will see a significant drop. This can be prevented by clearing one’s debts and paying all bills on time.
- Published On : 3 months ago on March 16, 2019
- Author By : Sarah hollie
- Last Updated : March 18, 2019 @ 5:30 am
- In The Categories Of : Finance
About the author
Sarah hollie - a fashion designer who is having lot of excitement in exploring different model dresses. From kids to women I like to design in different model costumes and digging many new ideas. I am having the habit to upload all the new designs in social site so follow my twitter page.