How to Protect Yourself From a Collection Agency
If you owe money to a third-party collection agency, you should take steps to protect yourself. While you don’t have to hire a collection agency, they can be aggressive and affect your credit. If they are not careful, they can even obtain a legal judgment. Fortunately, you have rights and can minimize the damage of a collection agency’s actions by knowing your rights. This article provides some tips on how to best protect yourself.
First, you should be careful with the information you give to a collection agency. Your identity and any other information you give them could be used to collect the debt. Only provide information that is relevant to the debt. That means keeping your social security number private. This way, you’ll avoid any negative publicity related to your account. However, you should never make it a habit to divulge any personal details to a collection agency. They can use that confidential information to harass you and your credit rating.
A collection agency will evaluate your case based on the odds of success. Many collection agencies carry thousands of accounts that are delinquent. The agency must decide which ones are worth pursuing and move forward with aggressive collection efforts. If you have little to no chance of finding your debtor, your account will receive a low priority, and it will be sent to a debt collector for collection. If the debtor has a bad credit history, your account will be given a lower priority. You can get more information about collection agency quotes .
Another important factor when choosing a collection agency is their experience. The best collection agencies are those with a proven track record and a positive attitude. Most members of the ACA International trade association have been in business for several years. They have been around for decades and have been rated very highly by the Federal Trade Commission. These members are required to follow certain ethics guidelines. In addition to a positive attitude, they also follow the law. These standards are important to the protection of consumers and the integrity of the industry.
The best way to protect your business is to ensure that your collection agency follows the law. The FDCPA has strict rules regarding the conduct of collection agencies. In the United States, most collection agencies belong to the Association of Credit and collections professionals. ACA members agree to abide by the standards of ethics. They must treat consumers with dignity and appoint a complaint officer. These standards are important for your company and the consumer. A member of the ACA is usually a good choice.
A collection agency will use various methods to collect money owed. A collection agency may buy a debt from the creditor and try to collect the entire amount or a portion of it. In most cases, the debtor pays the collection agency for 25% to 50% of the money they collect. Therefore, a debt collector who is paid a smaller percentage of the total can easily lose out on more than one dollar. If you can’t find the original creditor, consider hiring a debt-collection agency that is a member of ACA.