Chances are you loaned out some money to your friend or colleague and they failed to honor the repayment plan. This will definitely leave you feeling devastated considering you might have had to take money from your savings. Luckily, gone are the days when you could encounter a host of problems before recovering your loaned out money. Nowadays, debt collection agencies such as Bonneville Collections have undertaken the responsibility of collecting loans on behalf of the creditor. In this guide, we are going to have a look at everything you need to know about debt collections. Read on and find out more.
What is a Debt Collection?
We can never proceed further without clearly understanding what debt collection involves. After all, there is no reason why you should use something you know nothing about. However, it is mandatory to keep in mind a couple of things in order to understand how collections work. First and foremost, a collection will come into play when an account such as an automobile or medical bill is unpaid for some time. In most cases, the original creditor will try collecting the debt for somewhere between 3-4 months. If they are unsuccessful, they are going to send your name over to a professional debt collection agency.
Debt collection agencies will undertake the responsibility of sending emails and making phone calls to the debtor. The creditor might even decide to sale the account to the debt collector at a much lower price than the balance itself. However, this is not always what happens since many companies hire a debt collection agency to collect the debt. Large lending companies, credit card companies included, tend to have their own internal collection departments. They will thus follow up in case you happen to derail with your payment plan.
What Takes Place When an Account is sent to a Debt Collection Agency?
Whenever an account is forwarded to a debt collection agency, there are a couple of things that take place. The account will first appear on the customer’s credit report as a collection. This will in turn make your credit score to witness a huge hit. What this basically implies is that you are going to have a poor credit score. Next, the debt collection agency starts sending messages, emails or even phones calls. Keep in mind the level of communication tends to vary from one debt collection agency to another. Furthermore the nature of your debt also has an important role to play when it comes to determining the level of communication.
If you fail to clear the debt as agreed, the debt collection agency might be forced to be aggressive with you. The good news is that there are guidelines put in place to govern how a collector is going to handle the customer. In fact, they need to be honest and show respect to customers in order to avoid finding themselves on the wrong side of law. After all, you also have your own rights that must never be violated.
What to Do When a Debt Collector Gets in Touch With You
Ones a debt collector gets in touch with the customer, the first thing one needs to do is write them a letter requesting a validation of the debt. This process is aimed at making sure the debt collection agency provides legal documentation proving the debt is actually yours. Some agencies might not have the documentation needed and hence cannot attempt to collect the debt. When writing this letter, you should be clear about your expectations. Ask them to remove the collection from your credit report if they cannot provide documentation. In addition, they should stop contacting you with immediate effect.
If at all the debt is validated to be yours, you will need to take the right measures aimed at negotiating with the collector. This not only implies paying off the debt but also removing it from your credit report (Pay for Deletion). It is only through this action that you can qualify for more loans in the future. The idea is quite simple and it is actually a win-win situation for all the parties involved.
Fastest Way to Remove a Debt Collection
Since debt collection is not a walk in the park, it would be better to hire a professional to do the hard work for you. Simply look for a debt collection agency that will undertake the responsibility of recovering a loan. This does not mean choosing any agency you come across as it might end up costing you big time. Take your time in examining all the agencies available at your disposal before making the decision to settle on one. But how do you know whether a debt collection agency is worth relying upon or not? Here are some of the most notable qualities of debt recovery experts.
- Effective Communication
Any successful debt collections agency will always employ effective communication in all their practices. This does not come as a surprise since effectively communicating the debt collection message to clients helps in resolving any differences that might exist. To make it even better, you get to build trust with the debtor. The more effective your communication is, the easier it is for you to solve any issue that arises. Debt collection agencies are actually problem solvers and hence they need to be effective when communicating with clients.
- Perfect Negotiation Skills
A reputable debt collection agency must be a good negotiator. Through negotiations, it will prove quite easy for them to solve all issues considering most problems occur as a result of unmet demands. This does not mean the agency should come up with all the rules. Doing this is only going to undermine the client. A successful debt collector must always have the client’s needs at heart. Remember, the main aim is to create a win-win situation for all the parties involved.
Apart from effective communication and perfect negotiation skills, a reputable debt collection agency must also be persistent. After all, there is no such thing as over-night success and hence you need to prove your worth. Ensure the agency you choose to work with has well-defined goals and is persistent in carrying them out. This does not imply making phones calls and sending emails to the client every now and then. Remember, there are guidelines that need to be followed by every debt collection agency and hence they must adhere to them. It is only then that the debt collector is going to achieve success hassle-free.
- Goal Oriented
A strong goal orientation is mandatory for any debt collection agency to achieve success. This is because it focuses more on attaining the perfect results from your actions rather than the efforts put in place to bring the expected results. Successful debt collection agencies will therefore strive to attain their goals in order to meet the needs of every client.
Why Choose Bonneville Collections
If you are still finding it hard in choosing the best collections agency to work with, then you should consider seeking the services of Bonneville Collections. For those who might not know, Bonneville Collections is a certified debt recovery agency based in Utah. Actually, they are certified through the Professional Practices Management System (PPMS) and the Association of Credit and Collection Professionals (ACCA).
Over the last couple of years, they have been able to take Bonneville Billing to a whole new level. This is made possible as they implement the perfect strategies in order to recover your loan within the shortest time possible. What is even more fascinating is the fact that they treat clients with utmost respect. No wonder they are regarded as one of the best agencies at the moment when it comes to debt recovery.
In order to get the services of Bonneville Collections, you will first have to get in touch with them. All it takes is for you to visit their official website after which you can find out more regarding their services. Alternatively, you can give them a phone call and there will be someone ready to listen. Do not let debts be the underlying reason why you cannot achieve business success yet Bonneville Collections is here to offer a helping hand. Get in touch with them today and change your life for the better.
The Bottom Line
By opting to work with a debt collection agency, you are set to avoid the stress of having to recover the loaned out amount personally. Remember, debt recovery needs to be undertaken by a team of professionals who understand what it takes to convince the debtor to repay back the loan. You should however work with a reputable debt collection agency if you are to stand a chance of achieving success. Luckily, Bonneville Collections is here to offer all the help that you need. Visit their official website and find out more about their mode of operation not forgetting the charges.