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How to Choose a Collection Agency

How to Choose a Collection Agency

A incassobureau is a company that collects debt on behalf of its clients. Reputable agencies follow a variety of governmental regulations and work standards while trying to recover unpaid balances. Some of these companies specialize in working with small businesses and other types of creditors.

If you fail to pay a credit card, mortgage or loan, the original creditor can send the debt to a collection agency. It is possible that the amount owed will go down once it gets sent to collections, depending on the statute of limitations, which varies by state. A good collection agency will not attempt to collect a debt that is past the statute of limitations.

Recover and Thrive: How a Collection Agency Can Propel Your Financial Success

Using abusive or unfair practices when collecting a debt is against the law. The Federal Trade Commission oversees the Fair Debt Collection Practices Act, which covers personal, family and household debts including auto loans, medical bills, credit cards and mortgages. A reputable collection agency will not falsely threaten to sue you or contact your employer, friends or family about the debt. It also cannot deposit a check that’s post-dated before the date it was written, which is against the law.

Cash flow is vital to most small business owners, so overdue invoices can be a big problem. A collection agency can take the stress out of collecting late payments for a fee. When choosing a collection agency, consider the rates they charge and their approach to debt recovery.

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