5 Things to Keep in Mind when a Collection Agency is Calling
The pandemic has led to a lot of cash crunch and debt-related issues for businesses across the world. And it is certainly no surprise to see them falling behind in clearing debts and receiving calls from a commercial collection firm.
If you are receiving calls from a business debt collection agency, the worst thing you can do is not receive the calls. Even if you know that you are not in a state to pay the debts, you need to answer the calls.
This is because if their reasons for calling you are legitimate then they can report you to the various credit bureaus and can even have litigation filed against you. On the other hand,
Here are 5 things that you can keep in mind when a collection agency is calling:
- Familiarize with the FDPCA: FDPCA or the Federal Debt Collection Practices Act is a federal law that imposes restrictions on the behavior of a collection agency in Houstonor any other agency in the country, when they are making attempts to recover debts. The law includes restrictions on the number of times the agency can call you along with the times of a day. There are also restrictions on what they can tell you and how you can have them stop contacting. However, the laws don’t apply to businesses or the entity that issued the debt.
- Find out the following Info: Here are the things that you need to note down after you receive the call:
• Who is calling- The name of the business debt collection agency, their address, phone number, email ID, case number, and the name of the professional assigned for your case.
• Debt description: The name of the company that claimed the amount, the amount figure, the date of debt incurred, the services provided (allegedly), and whether any interest has been added to the original debt amount.
• A hard copy of the info: After noting these data, ask them to send you a mail carrying the full debt description. This is also known as a debt verification letter or validation letter. They should not call you until you have received the mail.
- A Paper Trail: Having a hard copy or emails of all the transactions, be it via words or payments, from the Houston commercial collection agencyis necessary. If the matter is resolved, make sure to have a mail showing the resolution too. If you do not do this, someone else may turn up asking you to clear the same debt and you will not be able to prove that you have cleared it already.
- Things to do if unable to pay: If you can arrange for a plan of payment, do it. never forget that potentially, anything is negotiable and this includes:
• The time you have to clear the debt
• Whether you have to pay the fees or any interest
• The final amount you have to clear
If a payment plan has been decided upon, have it in writing or as a mail from the business debt collection agency, so that you can have a paper trail.
- Debt Counseling: Finally, if you have multiple debts and you know that you will not be able to clear them, even if your debtor has not contacted a collection agency, you should go for debt counseling. Look for the best collection agency for professionals who will be able to help you sort out the situation efficiently.
Keeping these 5 things in mind when receiving a call from a business debt collection agency will help you deal with the situation professionally and efficiently. This will further have a positive impact on the minds of your creditor too.
It’s a great time to be in the frozen food business, with great growth expected across the industry in the
Marketers waste 21 cents of every marketing dollar, reports Forrester Consulting. Knowing how to find your target audience helps you avoid this. An
With the global financial crisis looming, everyday citizens are looking to find ways to protect their wealth. The fear of