Commercial collection agencies or debt collecting agencies refer to businesses whose specialty is in collecting in debts. They specialize in pursuance of debts that businesses or individuals owe to others. Most businesses of this kind usually exist as agents of creditors. They collect debts for a fee or a certain percentage of the sum owed. When in need of professional commercial collection agency San Diego is the best place to make a visit to.
These agencies fall into many different types. The three main types are debt buyers, first-party, and third-party agencies. When the company is referred to as a first-party, it implies that is owned by or is a subsidiary of the original company to which the debt is owed. Those that are referred to as third-party agencies refer to independent or separate companies that a firm hires to collect a debt on its behalf.
Debts that are bought by debt buyers are usually undervalued. However, debt buyers retrieve the full amount, hence making profit. The various kinds of debt collectors are governed differently in different countries. The terminology also differs in different countries. Practices that are considered legal in one country may not be legal in another state.
The history of the business of collecting debts is very long and goes back to ancient civilizations. Back in ancient days, individuals who failed to pay their debts were made slaves together with their wives and children. The sum owed was therefore collected in the form of labor derived from the slave. Debts could be passed to the next generations, resulting in debt slavery. Other societies also exercised debt forgiveness where all slaves were freed of their obligations to their masters.
Methods of collecting debt have changed a lot in current times. In the United States, the government enforces certain rules that prevent mistreatment of the debtor by a debt collecting service. There have been several cases that involved mistreatment of debtors by highly motivated debt services. As a result rules have been set to avoid such. For instance, calls cannot be made to debtors if the debtor will pay the charges. There are rules governing the time, where, and to whom calls can be made.
The use of deceptive language as a strategy of making debtors to settle debts is forbidden. Deceptions include impersonation and use of arrest to threaten debtors. In addition, collectors cannot use obscene language when speaking to debtors. Collectors are supposed to identify the company they work with, reason for calling, and their name when the debtors requests to know during a call.
Most companies specialize in local cases because they understand laws that apply in the country. International cases are very complicated and involving and most companies tend to ignore them. International debt cases may require understanding a foreign language and the legal system of the country. Differences in time can also cause challenges.
Debt collectors may sometimes be given permission to contact neighbors or relative of the debtor to inquire about their whereabouts. No discussion about the debt is allowed to other people besides a debtor, their spouse, or their attorney. The collector can only call other people in an attempt to locate the debtor and not to talk about debt unless debtors have given permission.
These agencies fall into many different types. The three main types are debt buyers, first-party, and third-party agencies. When the company is referred to as a first-party, it implies that is owned by or is a subsidiary of the original company to which the debt is owed. Those that are referred to as third-party agencies refer to independent or separate companies that a firm hires to collect a debt on its behalf.
Debts that are bought by debt buyers are usually undervalued. However, debt buyers retrieve the full amount, hence making profit. The various kinds of debt collectors are governed differently in different countries. The terminology also differs in different countries. Practices that are considered legal in one country may not be legal in another state.
The history of the business of collecting debts is very long and goes back to ancient civilizations. Back in ancient days, individuals who failed to pay their debts were made slaves together with their wives and children. The sum owed was therefore collected in the form of labor derived from the slave. Debts could be passed to the next generations, resulting in debt slavery. Other societies also exercised debt forgiveness where all slaves were freed of their obligations to their masters.
Methods of collecting debt have changed a lot in current times. In the United States, the government enforces certain rules that prevent mistreatment of the debtor by a debt collecting service. There have been several cases that involved mistreatment of debtors by highly motivated debt services. As a result rules have been set to avoid such. For instance, calls cannot be made to debtors if the debtor will pay the charges. There are rules governing the time, where, and to whom calls can be made.
The use of deceptive language as a strategy of making debtors to settle debts is forbidden. Deceptions include impersonation and use of arrest to threaten debtors. In addition, collectors cannot use obscene language when speaking to debtors. Collectors are supposed to identify the company they work with, reason for calling, and their name when the debtors requests to know during a call.
Most companies specialize in local cases because they understand laws that apply in the country. International cases are very complicated and involving and most companies tend to ignore them. International debt cases may require understanding a foreign language and the legal system of the country. Differences in time can also cause challenges.
Debt collectors may sometimes be given permission to contact neighbors or relative of the debtor to inquire about their whereabouts. No discussion about the debt is allowed to other people besides a debtor, their spouse, or their attorney. The collector can only call other people in an attempt to locate the debtor and not to talk about debt unless debtors have given permission.
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