Have you received a debt collection letter or received numerous phone calls from Collection Agency. If you are wondering why you are receiving so many debt collection calls or letters then it is time to understand what is Collection Agency and how they work?
Collection Agency is a well-defined business model that pursues individuals or businesses to collect payments on debt owed by them. These collection agencies have to tie up with banks, credit card companies, or businesses to act as their agents to collect debts from individuals and businesses for a small fee.
There are two types of collection agencies. The first type of collection agency is the one, which acts as agents for creditors (banks, credit card companies, businesses, etc). They pursue defaulters and recover complete or partial debt for businesses. In exchange for that business, entities will pay a percentage of full amounts to a collection agency.
The second type of collection agency is the one that works as debt buyers. They buy full debt from the business for a small amount (pennies against dollars) and then pursue defaulters to recover complete owed money. Commercial Business owners use this option to remove bad debt from their account receivables. This helps them to keep a clean account and at the same time to get some money against defaulted accounts. Since the nature of the job is to recover money and there are many financial constraints attached to this business. Due to this sometimes the collection agency overstep and pursue aggressively and sometimes use abusive practices. In the United States, they are supposed to adhere to the Fair Debt Collection Practice Act. Failure to abiding the law can be sued under the United States constitution. In some cases, debtors have sued the collection agency for their aggressive and abusive practice and won cases with monetary damages.
However there are are many collection agency companies that work in the best interest of business and consumers to ensure businesses suffer fewer losses and same time help consumers to avoid credit damage. These companies work professionally in reaching out to customers and provide them account details and work for a manageable repayment plan. In the end, they serve both business and consumers by creating flexible payment plans. This is a win-win situation for both businesses and consumers.
When small businesses engage professional collection agencies, it directly translates to the nonalienation of customers, the stability of brand, increase in revenue, and customer loyalty. At 360 financial serves after careful screening professional collection agencies are selected and onboarded to the B2B program. Small businesses can get 5 quotes from multiple professional collection agencies and choose with which one you want to work.
There are two types of collection agencies. The first type of collection agency is the one, which acts as agents for creditors (banks, credit card companies, businesses, etc). They pursue defaulters and recover complete or partial debt for businesses. In exchange for that business, entities will pay a percentage of full amounts to a collection agency.
The second type of collection agency is the one that works as debt buyers. They buy full debt from the business for a small amount (pennies against dollars) and then pursue defaulters to recover complete owed money. Commercial Business owners use this option to remove bad debt from their account receivables. This helps them to keep a clean account and at the same time to get some money against defaulted accounts. Since the nature of the job is to recover money and there are many financial constraints attached to this business. Due to this sometimes the collection agency overstep and pursue aggressively and sometimes use abusive practices. In the United States, they are supposed to adhere to the Fair Debt Collection Practice Act. Failure to abiding the law can be sued under the United States constitution. In some cases, debtors have sued the collection agency for their aggressive and abusive practice and won cases with monetary damages.
However there are are many collection agency companies that work in the best interest of business and consumers to ensure businesses suffer fewer losses and same time help consumers to avoid credit damage. These companies work professionally in reaching out to customers and provide them account details and work for a manageable repayment plan. In the end, they serve both business and consumers by creating flexible payment plans. This is a win-win situation for both businesses and consumers.
When small businesses engage professional collection agencies, it directly translates to the nonalienation of customers, the stability of brand, increase in revenue, and customer loyalty. At 360 financial serves after careful screening professional collection agencies are selected and onboarded to the B2B program. Small businesses can get 5 quotes from multiple professional collection agencies and choose with which one you want to work.
