The Essentials Of Debt Collection Part Three

In parts one and two in this set of articles on the very basics of debt collection, I spoke about the differences between an in house collector and a third party collection agent. I let you know about the different types of ways that debt collectors will locate the debtors, and described a number of statements that the debt collector must say before they can proceed in their attempt to collect debt from you.

Three Ways To Collect On An Outstanding Debt.

No matter what you do to try and weed out potential deadbeat customers, sooner or later one or more accounts will become past due. When you find yourself with a past due account on your hands, the worst thing you can do is ignore the problem. The more time that passes between the payment due date and the time that the customer is contacted, the less likely you are to receive the full payment. After 6 months, you statistically collect only 50% of the amount due and after a year that amount drops to only 25% of the original debt. If you’re serious about making a profit, there are three ways to handle collection on past debt; in house efforts, hiring a collection agency, or taking legal action.

Bankruptcy: Automatic Stay And How It Protects You From Creditors

U.S. Bankruptcy Code imposes something called an automatic stay the moment that a petition for bankruptcy is filed. The automatic stay will typically prevent the enforcement, commencement, or appeal of actions and judgments against a debtor from the creditors they owe money to who are trying to collect these debts incurred prior to the bankruptcy petition. The automatic stay also protects property of the bankruptcy estate itself from collection actions and proceedings.

Jury Duty Scam Emerges As Scams Increase

According to the FBI, jury scams have existed for years. What happens is that someone will call you, telling you that you have missed jury duty, and then asks for personal information to stop you from getting arrested. But if you give the conman what he wants, you could lose your identity.

Detroit To Call On Debt Collectors

The city of Detroit has devoted almost $50 million since 2004 to tearing down abandoned buildings. Getting rid of these blemishes has been useful, but feeble collection efforts have left taxpayers footing the bill.

What Is A Collection Agency Allowed To Do?

When and how does bill collection cross over the line into harassment and aggressive behavior? A bill collector is never allowed to use obscene language or threats of violence. However, they are allowed to insult your integrity and make you feel bad about the person you are.

Feds Arrest 2 In Buffalo For Debt Collection Scam

The U.S. Attorney’s office forwarded a criminal complaint Friday in U.S. District Court charging Timothy E. Arent and Neil G. Wieczkowski, both of Buffalo, N.Y., with mail fraud and conspiracy to commit mail fraud. Arent is also charged with bankruptcy fraud. The charge of mail fraud has a maximum penalty of 20 years in prison and a $250,000 fine. The bankruptcy and conspiracy fraud charges each carry a maximum penalty of five years in prison and fine of $250,000.