The primary purpose of a Collection Agency is to collect debts on behalf of a creditor. Despite the name, collection agencies are not legal entities and are subject to many laws. Using a debt collection agency is a safer option. It is unlikely that the agency will be able to take legal action against you, but it is a better option than pursuing the debt yourself. In addition, a debt collection agency is not required to collect a debt if the debtor has not agreed to pay it.
A Collection Agency can work for many different types of debt. Some of them specialize in debts of less than $200 or are less than two years old. A reputable collection agency will only collect debts that are within the statute of limitations, which varies by state. The statute of limitations allows the creditor to pursue debts legally. In exchange for these efforts, the creditor pays the agency anywhere from 25 to 50 percent of the amount they collect.
A collection agency may collect debts that are older than two years or that are less than $200. For example, a collection agency may focus on debts that are less than two years old or debts with a low balance. A reputable collection agency will only work on debts that are within the statute of limitations. This means that the creditor is able to pursue them legally and get a small percentage of the money. Once a creditor agrees to hire a collection agency, they will pay the agency 25 to 50 percent of the money they collect.
Before hiring a collection agency, make sure that you understand what their rules are. The FDCPA requires collection agencies to follow certain guidelines. If you have a dispute with a company, you can try to resolve the matter with them. You can also contact the National Association of Collectors (NACA), the Federal Trade Commission, and the Association of Credit and Collection Professionals (ACA). This information can be helpful when choosing a collection agency.
The first step is to find a debt collection agency that you trust. Often, a collection agency will be affiliated with a third-party company, but if you have never received a letter from a collection agency, you can be assured that the agency will be fair and honest. It is also possible to find a good deal with a third-party company if you have a bad credit score. This can help you get a better loan and negotiate with your lender. You can get more information about collection agency quotes .
Before engaging a Collection Agency, make sure to research the agency’s reputation and if they are a member of an organization. ACA International is a trade association, and most collection agencies are members. Its members are required to adhere to its code of ethics. Some agencies are members of the National Association of Collectors. Its member companies are required to treat consumers with respect, and have an appointed consumer complaint officer. Regardless of whether a collection agency is ACA-certified, you should always take steps to protect yourself and your business.