Frequently Asked Question About Debt Collection Agencies

The job of a debt collection company is to retrieve funds due from delinquent individuals. However, these organizations may either work individually or work for an organization. Partnering with the Atlanta collection agency ensures that the agreed payments and monies are remitted to the original company owed.

What are debt collection firms?

Debt collection firms have a significant role to play. Moreover, they work as the middleman between customers and businesses. They help you collect debts at least 60 days past due and remit them to the company.

A percentage of debt goes with the debt collection agency as a part of the payment. These agencies collect all types of debt, including

• Credit card
• Medical
• Car loans
• Personal loans
• Student loans
• Business loans
• Unpaid utility and cell phone bills

Debt collection agencies must work within the statute of limitations set up by each state. But, you must keep in mind that debt too old can no longer be legally pursued.

How does a debt collection agency make money?

A debt collection agency takes a percentage, i.e., 25 percent to 50 percent. Meanwhile, debt collection agencies may sell the debt to a debt buyer. These are common when other debt collectors have failed to collect on, or they may be new delinquent debts with no prior collection activity.

Atlanta collection agency purchases the collection packages outright, usually through a bidding process. As a result, a debt buyer takes on the risk of buying a delinquent account with zero possibility of profit.

Can debt collection firms harass consumers?

No debt collection agency may harass consumers. Moreover, collectors are strictly prohibited from following a set of rules mentioned under the Fair Debt Collection Practices Act (FDCPA). Also, debt collectors may not contact you at inconvenient times or places. Also, they are not allowed to contact you at work. They can't simply show up at your home or office. However, they may send letters, emails, text messages to collect the outstanding debt.

Should you speak to the debt collector?

It's a good idea to speak to a debt collector at least once. You may not be able to repay the debt immediately; still, you need to contact them. You may want to find out more information about the amount. Besides, the Atlanta collection agency may send a written validation notice stating how much the consumer owes, the creditor's name, and what to do if the debt is not theirs.

If the debt collector is bothering, consumers have the option to request to send a letter by mail asking for all contact to stop. Once they receive the mail, the debt collection agency in Georgia may no longer contact you for further action.

Final Wrap

The task of the Atlanta collection agency is to get a payment on a delinquent debt. They are not out to harass or annoy but are willing to create a payment schedule. It's more about ensuring it fits both parties' needs.

Patricia Hayden is a professional content writer and blogger from Atlanta, Georgia, USA. She is currently working with Vital Solutions Inc., a leading debt collection agency in the United States.