Posts Tagged collection agency
Legal And Illegal Tactics A Debt Collector Will Use To Collect: Debt Collection Basics Part Three
Posted by Mallory Megan in Currency & Finance on August 7th, 2010
In the first two articles I wrote about what a collections account was, how sending delinquent accounts out to an agency profits a creditor, and the act of a third party collection agency buying old debt from a creditor.
I described what sort of data a collection company will collect and use in their efforts, and also that third party collection agencies are governed by federal and state laws and are overseen by the FTC.
A minority of collection companies will utilize deceptive, strong arm and illegal methods to confuse and scare debtors that include pretending that they are one of their creditors and asking them to verify information, pretending to be an old friend or neighbor to catch a debtor off guard, repetitively calling or mailing a debtor to the point where it gets to be a nuisance, or sending threatening letters or leaving threatening voicemail messages.
Legal but manipulative methods include pressing the consumer, preying on their emotions, and utilizing vague threats such as “respond within so and so amount of days or further collections attempts will follow.” Other illegal practices include making an idle threat of litigation or pursuing litigation when the debt collector has no intention to, threatening to throw a debtor in jail, threatening to garnish wages or seize bank accounts when they have no authority to, lying about the amount that is owed, or asking for more than what is owed are used as well.
For the collections industry, time is the enemy and a good bill collector is completely aware of this bit of information. Their main task is specifically to get money as soon as possible.If you are talking to a debt collector, keep in mind that at any time you have the legal right to tell them you are busy and will call them back if you are flustered, hang up, cool off, develop a game plan, and contact them later. An aggressive debt collector will ask you why you can’t make payment arrangements today.
Rapid Recovery Solution is a commercial collection agency that writes stories on new york collection companies.
Crack Down On Superbowl Expenses
Posted by Mallory Megan in Currency & Finance on July 30th, 2010
Even though we are in the middle of a recession, and many of you are in debt, there is no reason that you cannot throw a really great Super Bowl Party.
Focus on not overdoing it. Make just one extravagant dish and play the rest off of that. A vat of chili, if seasoned correctly can serve twelve people for twenty dollars. Chicken wings are very inexpensive and easy to make. Coils of kielbasa, priced around five bucks are a cheap and delicious snack.
Due to the fact that the Super Bowl is a special occasion, go for hot food. Ordering big trays of Chinese takeout are less expensive and time consuming than cooking your own food.
Children at Superbowl parties can be tough to please. Vegetables, juice, chips, and a carvel football shaped ice cream cake priced at $22.99 will keep them at bay.
Drinks? The best choice for shoppers on a budget is beer and wine. A keg will save you about 40% according to experts. The wine doesn’t have to be fancy – a five liter boxed wine will be more than acceptable. If you encounter the troublesome guest who insists on liquor, get discount vodka, a half gallon for just fourteen dollars. Its cheap, and blends with about anything.
Even in tough times, it is a requirement to make the most of your game-viewing experience. A medium to large flatscreen is completely necessary. But if you don’t own one, rent one. Websites list 42 inch TVs for as low as $26.99 a week.
And about those annoying people who don’t watch football. A pool for small gifts like a store certificate or CD might inspire people who aren’t the least bit interested in football at all if a prize is awarded at the end of every quarter. Try to have experienced fans explain what is going on. Then, sit back, and enjoy your game.
Mallory Megan works for a debt collection agency. She also composes articles on business and finance, consumer spending and collection agencies.
Foreclosures On The Rise
Posted by Mallory Megan in Currency & Finance on July 19th, 2010
Research recently collected by RealtyTrac Year-End 2009 Foreclosure Market Report indicates that 3,957,643 foreclosure filings were reported on 2,824,674 United States properties in 2009. Included in this research was scheduled foreclosure auctions, default notices and bank repossessions.
This is a twenty one percent increase in land from statistics in data that was collected in 2008, and a one hundred and twenty percent increase in total properties from 2007. Additionally the report indicated that one in forty five housing units, 2.21 percent, got at least one foreclosure filing in the year of 2009, up from 2008’s 1.48 percent and 2007’s 1.03 percent.
Just in the month December, foreclosure filings were reported on 349,519 properties in December. That’s a fourteen percent jump from the previous month of November and a fifteen percent increase from 2008. Nevertheless, even though there was an increase in December, foreclosure activity in the fourth quarter of 2008 has decreased by seven percent.
Of all of the states, Nevada claimed the nation’s highest state foreclosure rate; more than ten percent of housing units received at least one foreclosure filing in 2009. That makes Nevada’s third consecutive year at the top of the foreclosure list. Nevada’s foreclosure activity in December increased twenty seven percent from the previous month, but still was down by twenty two percent from December of 08.
Arizona claimed the nation’s second highest state foreclosure rate in 2009 with more than six percent of properties receiving at least one foreclosure filing during 2009, and Florida claimed the nation’s third highest foreclosure rate at 5.93 percent of its properties getting at least one foreclosure during the filing year.
This raises issues in the collection’s industry. Recent trends have told collections officials that consumers are purposely pumping up their credit debt and downplaying their assets to get lower payment plans. The fact that they are increasing debt on their credit cards to receive lower payment plans does not look promising.
Mallory Megan works for a debt collection company. She also writes stories on business and finance, consumer spending and collection agencies.
Bankruptcy: Automatic Stay And How It Protects You From Creditors
Posted by Mallory Megan in Currency & Finance on June 5th, 2010
The moment that a petition for bankruptcy is filed, U.S. Bankruptcy Code imposes something called an automatic stay. The automatic stay will generally 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.
If a creditor violates the automatic stay are voided out. Any violation of the stay may cause the violating party to incur damages for the violation. But, like every complicated law, there are exceptions. A creditor may be permitted to take their collateral if they obtain permission from the court first. They’ll get this by filing a motion for relief from the automatic stay.
The court will either grant the motion or provide security to the creditor, ensuring that the value of their collateral won’t decrease during the stay. Without the protection of the automatic stay creditors could hypothetically race to the courthouse in order to improve their positions against a debtor. If this happened, and let’s say that a debtor’s business was facing just a temporary crunch, it might not survive a “run” by creditors when their business could otherwise be salvaged. A run may also result in waste and it might be unfair to similar creditors that are owed money too.
There are three kinds of avoidance actions, and all of these attempt to limit the risk of the legal system encouraging the downfall of a financially unstable debtor who hasn’t declared bankruptcy yet. The bankruptcy system will typically reward creditors who continue extending financing to debtors and will discourage creditors from ramping up their debt collection efforts.
Even though these rules seem simple, a few exceptions exist in each category of avoidance action.
Rapid Recovery Solution is a third party collection agency.
Fake Debt Settlement Schemes To Be On The Lookout For Part Two
Posted by Mallory Megan in Currency & Finance on May 27th, 2010
In the last article I spoke about seemingly disreputable debt consolidation schemes that you should be aware of. Read on to find out more about these scams….
In the meantime, your creditors are not being paid. Unfortunately, while you are accumulating that payment, you are not paying your bills and you may be delving further and further into debt.Instead of taking this gamble check out a nonprofit credit counseling firm that may charge you only twenty dollars, if anything. Instead of billing the debtor, these counselors will typically get what is called a fair share percentage payment from your creditors after you have been paid.
Finally, and most importantly, DON’T invest your trust in the debt consolidation counselor who tells you that “We will handle everything. You should cease all communication with your creditors.” Even though the fact that the idea of not speaking to creditors and ignoring their mail sounds like a real load off of your back, ultimately, it is your debt and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company.
It is key to remember that the creditor is the one with whom you signed your contractual agreement. When all of your statements are being sent to the debt settlement company, you relinquish that control. You do not know how much in late fees and interest are being tacked on. You also will not know if your debt has been transferred into collections.
A few final words of wisdom. If you think you need debt settlement, try debt management first. Get in touch with your creditors and request reduced interest, suspended payment or any other payment terms that may suit your financial situation more favorably. Although it may appear to be a long shot, or a pain, it is always extremely essential if you are about to miss a payment to call your creditor and say “Hey, listen, I am unable to make this month’s payment. I’d like to work something out with you.
Rapid Recovery Solution is a credit debt collection company.
Two Important Prosecutors Go After Debt Collection Agencies
Posted by Mallory Megan in Currency & Finance on April 24th, 2010
In recent news it was revealed that powerful prosecutors in Louisiana and Washington made announcements of actions they had obtained against debt collection agencies and their owners and managers.
Louisiana’s attorney general James Caldwell announced on Friday that his office had gotten a hold of injunctions against two collection agencies and their owners. On the same day, Rob McKenna, Washington’s Attorney General said that his office had settled charges with a collection agency that had promised to stay on the straightened arrow. In a press release, Caldwell’s office stated that in late December they had gotten a hold of an injunction against Bush and Kennedy, Inc, a Baton Rouge based collection company. The order he won placed restrictions on the business, banning them from operating further, and specifically, ordered that two of the firm’s principals, Quay W. Pattott Jr, and William S. Fesguson were banned from conducting business together.
Late last week, a judge slammed Ferguson and Parrott with added injunctions as per the request of Caldwell’s office. Ferguson is banned from using unfair and deceptive practices and acts at his current place of business, Franklin, Grant and Associates Incorporated, a collection company based out of Metairie Louisiana. Parrott is completely restricted against conducting any new business at his new place of work, Metairie based Halsey and Associates, LLC.
McKenna’s Washington office said that Topco Financial Services Inc, a Washington based collection agency agreed not to threaten, harass or curse out debtors as part of a settlement. The collection agency has been ordered to pay around $38,000 in legal fees and penalties. An additional $82,000 in fees and penalties were suspended provided that the company agrees with the settlement terms.
In accordance with their agreement, Topco is prohibited from harassing, intimidating, threatening and embarrassing debtors, including using profanity. They are restricted from implying that failure to pay a delinquent bill will result in suspension, a revocation, or impairment of the debtor’s driver’s license. They are banned from threatening debtors with impairment of their credit rating. However, the company is allowed to legally report debts to credit reporting agencies.
Mallory Megan works for a debt collection company. Also she writes articles on business, finance, consumer spending and collection agencies.
Credit Cards Help Medical Providers Cut Back On Collection
Posted by Mallory Megan in Currency & Finance on April 15th, 2010
In recent news it was revealed that Michigan doctors offices are requiring that, patients present and utilize their credit cards before getting any medical care. A fairly new internet based medical payment program permits medical providers to secure a credit card before medical help is provided.
Touting that it is fact that it is a way of making sure medical providers collect their pay while keeping administrative costs down, the business has been around since 2008. It works like this: upon arriving at their doctors office, patients are informed by their medical care provider what the maximum amount a particular procedure will most likely cost. The patient slides their credit card, gets the procedure done, and gets sent out of the office with a receipt and a detailed slip of services that were provided.
After that has happened the doctor will bill the patient’s insurance company. It will tell the doctor how much of the work is covered; the balance left over is charged on the card. If a deductible hasn’t been met, then the whole price of the procedure is charged.
With the increasing health care costs, more pressure has is being put on patients to pay their bills in the form of higher deductibles, out of pocket expenses and unpaid bills. With this stress that is increasing, unpaid and delinquent bills have become big issues for medical doctors.
Patient’s health care payments top the charts now to cover three hundred billion dollars a year, and that number is supposed to grow up to twice that number by 2015. From this number, fifty to sixty billion dollars of current health care debts go without being paid. The program has been shown to reduce late accounts by up to eighty percent.
But some financial experts remain skeptical. The issue of patients who don’t pay off their balance each month hasn’t yet been resolved, and this is not factoring in the problem of a patient not having a credit card.
Mallory Megan is employed by a debt collection agency. She also writes stories on business, finance, consumer spending and collection agencies.
Debt Collection Companies Explore Work At Home Opportunities
Posted by Mallory Megan in Currency & Finance on April 12th, 2010
Even though it is always a good idea to hire more workers to add to your ranks, keeping the best employees in a collections agency is key. It has become a recent trend that tenured collectors are now requesting to work at home.
It might be a smart move to accommodate for them considering that their commissions have been lower as of late, and the stress of the commute or a need to spend more time with family may drive your best collectors away.
Work at home programs have not become an every day thing yet, however there are a few agencies that are making exceptions for certain debt collectors. Typically these collectors are the best at what they do and may work from home a few days a week.
The way that working at home works is simple. Usually, the collector is set up with a computer that can access the computers at the office and they are given designated phone equipment to use. The beauty of it is that everything the collector does can be monitored still, as if he or she was working in the call center itself.
But before you start to send employees to work at home, it is imperative to assess the good and bad qualities of each collector. But studies have shown that if a collector is a good candidate to work from home, they will be more productive, take fewer breaks, and without social interaction with other employees they can focus on the job itself.
There are still a good amount of issues that have to be addressed when one thinks about working at home. First, there are potential data security performance control and data security issues. Additionally, in light of all of the recent laws impacting the collections business, it is not probable that we will know of many formal work at home programs anytime soon. Yet experts believe it is not good to alienate the best workers who are inquiring about work at home. They predict that we will see more collection agencies allowing collectors to work from home within the next five years.
Mallory McGuinness works for a debt collection agency. She also composes articles on business, finance, the credit industry and collection agencies.
Your Small Business Is Not Alone In This Economy
Posted by Mallory Megan in Currency & Finance on March 16th, 2010
You would have to be living in a cave not to be aware that we’re in the worst financial crisis in our lifetimes in the United States. If you find yourself worried about your business and what can happen next, you’re certainly not alone.
As I write this, the next few days bring great uncertainty about what the government is going to do to try and help bail out the failed banking system in the US. While it’s not clear what form the assistance will take, it appears almost certain that the US government will have to do something to fix the mess created in the financial system by rampant greed. What is going to happen? Who knows! What is obvious is that the vast majority of Americans are very unhappy with the situation and quite angry about spending billions of dollars to bail out an industry known for greed.
The fact of the matter is, a bailout is not the end of the troubles for those of us who run small businesses. The United States economy is in deep, deep trouble and this will not be fixed very quickly. All the major news outlets have commentaries about what’s happening and what to expect. It seems the consensus is that it’s unlikely we’re going to experience a level of unemployment seen during the Great Depression. That’s the good news. The bad news is that things are ugly and their likely get much worse before they get better. And if that wasn’t enough, things are probably not to get better in the near future.
Small-business owners are unlikely to be able to get the credit that they need in order to expand their business in the near future. So what can you do? No one can tell you what you need to do in your particular business, but I’ve always been a strong supporter of the low-cost direct marketing style in my businesses. I suggest you start rethinking all the creative ways you can seek out more revenue at a minimum cost. This means not only getting new customers at minimum cost, but equally important, you need to try to sell more services to the customers you already have.
The situation is a lot more complicated than simply not being able to obtain additional credit, it is also going to be difficult for most business owners to even make it through the next several years. There has already been a huge drop in consumer spending in the US. Getting new customers as well as maintaining the ones you already have is going to get very difficult. That is why this is the time to get yourself back to the basic and most important task you have, “Get your business well marketed.” There is nothing more important for your business in tough times such as these than your marketing efforts.
Mallory McGuinness works for a collections agency that works with a debt collection lawyer. She also writes stories on business and finance, consumer spending and collections agencies.
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Scranton Taxpayers May Have Received Collection Letters That They Might Not Have Deserved
Posted by Mallory Megan in 1 on March 9th, 2010
More than 200 Scranton taxpayers may have gotten a letter from a debt collection company that they did not deserve. The notices are for unpaid garbage fees that may have actually been paid. According to officials, the garbage bill itself for 2009 could be to blame for more than 200 collection notices sent to city taxpayers in error last week.
They believe the issue may have been the way that the bills were folded into the envelopes. The bill is mailed along with a perforated line above a bar code that identifies the customer, but because a crease created by the folding of the envelope, a second line under the bar code was formed, causing people to pull the bill off without the bar code.
Bills without a bar code would cause a bank not to register the payment. The mailing house that Scranton hired to stuff the envelopes was blamed. If the bill was mailed to the bank, it would be the pay stub in their payment that goes directly into a lock box. Then the stubs are scanned and the bar code is read. After that the bank sends the town a list of those who had come through based on the bar code readings.
Representatives from the collections company who sent out the letters say that they are taking every dispute from people who may have paid very seriously. Company protocol permits consumers to dispute a notice within 30 days of getting a collections letter. Additionally, representatives claimed that no bill will be collected while they are still sorting out the issue.
The agency will look into each claim from those who alleged they had paid the bill and gotten the notice. Those that they think have paid will be absolved from their debt and will no longer get collections notices and will not be pursued by the collection company.
Mallory Megan works for a collections agency that works with a debt collection lawyer. She also writes articles on business, finance, consumer spending and collections agencies.
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