- June 13, 2022
- Posted by: Taurus Collections
- Category: Blog
The debt collection process involves recovering debts from the borrower who has initially failed to repay or recover payments on accounts that are past their due date. When asked about “what collection agencies do?”, most people tend to think of a debt collector trying to contact debtors about some unresolved debts. However, people don’t realize that there are two distinct business models in the collection industry that conduct the collection of delinquent accounts in different ways.
Debt collection varies depending on the company collecting the debt. While some companies typically deal with specific debts only (like student loan debt or business debt), others deal with a few years old obligations. And others may not be willing to deal with a debt that is past the statute of limitations, depending on where you live.
Collection agencies can pursue your old debt as soon as it is past due, a couple of months, and indefinitely after it. It usually depends on the company collecting a debt, how much you owe your debtors, and the type of debt your business has.
Thus, if you are rooting towards collecting a past-due debt, you must alert your debtors via phone calls or written notices. However, having a debt collection agency by your side serves you great help. They will use the contact details, such as the phone number, current address, and your debtor’s relatives’ contact information. If needed, your potential debt collection agency will also access your debtor’s personal banking information to determine whether your debtors have money to repay the debts, including their savings and investment accounts.
How do reputable debt collectors operate?
Consider hiring a reputed and licensed debt collection company that follows the right procedures and techniques to retrieve money from past-due accounts. A professional debt collection agency will send letters and notices to your debtor’s residential address. They will make sure to send or give specific details to your debtors about their debts, including:
- The amount they owe (including the late fees and other charges).
- The name of the original creditor.
- Their ability to dispute the debt in question, along with stipulations.
Typically, your potential debt collector will offer them 30 days to dispute the debt in writing. If your debtor requests the name and address of the original credit, your collector is obligated to tell them. However, if your debtor does not dispute the debt in question within 30 days, your debt collection agency will consider your claim valid and continue to pursue the repayment of debts from your debtors.
Depending on where you live, your potential company will work within the statute of limitations. They will contact your debtors only between 8 a.m. to 9 p.m., irrespective of the number of calls your debtors may get within one day.
Are you looking for a professional debt collection agency to help you conduct hassle-free collection of your business debts? Taurus Collections (UK) Ltd. is here to assist! We follow an easy, straightforward method to support our clients with debt collection services by providing them with the utmost customer satisfaction while dealing with their debtors. Our services include:
Use our Late Payment Calculator to know your remaining credit amount.Call us at 0800 069 8777 or 01332 565 350 (Derby) or send your questions to email@example.com. Stay tuned on Facebook, Instagram, and Twitter.