Understanding the Process of Debt Collection

The process of debt collection has come a long way in the past decade, as compared to before when there were no laws guiding it. With the increase in creditors and debtors, some set methods and guidelines have been established, which benefit both parties. These new aspects make it easier for the debt collection agency to recover money from delinquent accounts, while also protecting the rights of the debtor. 

The major aspects of debt collection service India that you should be familiar with include: 

Dedicated account managers 

Most collection agencies employ trained professionals to recover debt from delinquent accounts. While doing so, they make one person responsible for the recovery from each account. When recovering money, it is more convenient to have one person assigned to the case, instead of a few separate people working on it. 

Multiple recovery methods 

Debt collection agencies offer various ways so a person can clear their debts with the creditor. A settlement can be worked out by an agent or legal steps can be taken, depending on the situation.

Consistent communication 

Credit report services India works on set guidelines regarding which methods can be used to contact the debtor. The collection agency can get in touch with the debtor via calls, messages, fax, email, or personal visits to the debtor's given address. Regardless of the method used, the agent assigned to the case will make sure they are in contact with the debtor during the recovery process. 

Looking for the most profitable and suitable proposals from your lenders? Hire our expert debt collectors today!

3 Services Offered by Debt Collection Agencies

Companies provide credit to people for various reasons, however, getting this amount back from the debtor can be tiresome. Usually, such companies outsource this collection of delinquent debt to a debt collection agency, which consists of trained professionals who can get the money returned to the creditor.

You can expect a few debt collection services when you approach a collection agency. Some of these include:

Credit control

If a creditor finds a debtor that hasn't cleared their debt for a long time, the task to recover this amount is usually given to a debt collection agency. This way, the creditor does not need to spend time, money, or resources to get the overdue amount back from the debtor.

Pre-legal actions

During the process of debt recovery, several issues about the debtor might come forward. For example, the debtor's address could have changed, in such case, the agency would have to trace them. The agents trying to recover the debt also need to follow legal methods and maintain professionalism while trying to do so, like conversing professionally while contacting the debtor via call, text, email, or fax. The collection might also have to send in agents to the debtor's address to collect the amount or offer alternatives so the debt can be recovered. If there is no response, official reminders and warning letters are also sent to the debtor.

Legal actions

When the pre-legal services carried out by the debt collection agency does not work out, the agency, along with the creditor, moves towards taking legal action against the debtor. This matter is then taken to court. Credit Reports India will not contain a good perspective of the debtor if the case goes to court.

Looking for the most profitable and suitable proposals from your lenders? Hire our expert debt collectors today!