Debt collection agencies are used by creditors that needs to collect money when the they don’t have the time, resources or patience to effect collections on their own. Collection agencies are experts in getting people to resolve money issues, they have trained staff that specializes in debt negotiation and skip-tracing. This training covers a broad range of FDCPA, legal and debt collecting skills as well as a proven process for going after accounts.

As a creditor, when you hire a collection agency, they are assigned the job of collecting the debt. Normally, if the agency is successful in debt collection the collection agency will retain a percentage of the amount collected as payment for services.

Some agencies will buy the accounts but most will not. The debtor does not actually owe the collection agency any money but they still owe the debt to the original creditor. By law the collection agency must provide, if asked, proof of the debt (known as validation of debt) that they have been assigned the account for collections on behalf of the creditor.

Occasionally, collection agencies will purchase the debt from the creditor. However, usually all that the collection agencies acquire is the right to carry out the process of debt collection.

Every US based collection agency is subject to the F.D.C.P.A and is not permitted to collect on fraud accounts. They will take every legal remedy available to enforce the collection of accounts that are outstanding. This includes going to court.

You should use a collection agency when -

you know the debtor has the ability to pay the debt is due there are no announced reasons for not paying

A debt collection company will attempt to collect via a letter writing campaign which can be effective, if occasionally slow, but it may not lead to recovery when -

the debtor has or thinks he or she has a valid excuse the amount past due is disputed there is an unrelated claim against you the debtor’s solvency is in doubt or there is the possibility of bankruptcy there is security to recover or a possible prejudgment remedy

If any of these circumstances occur, the creditor should for their own legal protection retain control of critical decisions such as if and when to litigate, what attorney to retain and any other decisions made prior to or during litigation. This is particularly important where the creditor has a long term interest in retaining the customer as his client. Not retaining control of critical decisions and proceeding without the advice of an attorney could leave the creditor open to adverse legal liability.

The option exists where this is not the case and the creditor is not interested in the outcome of a debt collection, beyond getting his money, to sell the debt to a debt buyer.

Tags: credit repair services, fast credit repair, credit repair counseling

As a business owner, what do you do if one of your customers does not pay you on time? If you hire an in-house person that will just cost you more money out of pocket. Your bottom line is at stake. What you need to do is hire a Debt Collection Agency

One collection agency I would like to point out is Rapid Recovery Solution, Inc. RRS is a Full Service, Attorney Based Debt Collection Agency helping businesses collect money globally. Rapid Recovery has over 750 locations worldwide. Multiple sites make locating your hard to find debtors easy. Unpaid bills affect your bottom line. Rapid Recovery knows that it has to collect your money because your company needs the money on 30-day revenue cycles.

Not all businesses are the same. RRS has developed a system to handle many types of company debts. A few examples: B2B, Wholesalers, Manufacturers, Dr’s Office. This is just a short list validating they are exports in many fields. as a bonus they also provide, free of charge: credit bureau reporting, skip-tracing and effective dunning notices.

They will offer a number of solutions to your non paying customers. Payment plans, settlements, refinance a home or consolidate debt. RRS will have a satisfied customer and possibly a happy debtor.

The collection method in a nutshell.

The first notice is sent to the debtor. They will attempt to contact for 30 days via phone, fax and email.

A second letter will be sent after 30 days if a payment has not been secured. The calls will keep going out.

Still no results? They will alert the credit bureaus of the bad account.

No communication from the debtor means a final demand is going out via USPS certified mail.

The customers really appreciate all the ways they can pay RRS. EFT, Paypal, Credit Card, Western Union. The list goes on and on.

When it warrants, each file will be updated every thirty days, especially when customers do not make the payments as promised.

Rapid Recovery Solution, Inc. will do everything possible to see that their clients get their money. If you are interested in learning more about their operations you can reach them at: 80 Orville Drive suite 100, Bohemia, NY 11716 and by phone at 631-776-8109

Their website address is: http://www.RapidRecoverySolution.com

Rapid Recovery will bend over backwards to earn your trust and confidence. Give them one chance to impress you and you will never have to worry about past due accounts again.

Tags: credit repair debt consolidation, national credit repair, bad credit mortgage repair

If you are looking to begin a credit repair business you should know that this type of business is highly scrutinized and regulated and is often the target of investigations, due to the number of people who have promised things they cannot deliver.

In order to succeed in the credit repair business you will need to be completely honest with any potential clients in explaining exactly how you may be able to help them.

Many times negative reports are made to the three national credit reporting agencies with just cause and they appear on your report.

However, after the time limit for these negative items they are not always removed and stay on the report until you complain. Anyone can obtain a copy of their credit report and file a written objection to items on the report and request they be removed. A credit repair business is simply doing this on behalf of a client.

Owners of a credit repair business have to give a potential client three business days after signing a contract to request a full refund if they choose to cancel and then must disclose details of the Fair Credit Reporting Act they will be following to attempt to remove old, invalid items from their credit report.

They should also disclose that valid negative items cannot be removed.

Fraud Detection Services Available Free

Sometimes a credit repair business will also offer services to keep an eye on your credit report to insure against identity theft, offering to notify you if new accounts are opened in your name or to notify you of unusual activity.

The credit reporting agencies will provide this service for you, without the need of a credit repair business. There are two levels of notification you can request and both will provide alerts if you believe you may be subject to identity theft.

The first is a notification that a new account has been opened in your name. At this time, your option is to contact the credit company with which the account is opened and inform them it is a fraudulent account and needs to be closed.

The second is no account can be opened unless you are contacted separately. Even if you are the one applying for a new credit card or loan, the company needs to contact you for verification before it can be completed.

While a credit repair business may offer this service, usually for a hefty fee, you can get the same service by contacting the agencies.

Tags: credit repair debt consolidation, professional credit repair organizations, credit repair techniques