8 Common Misconceptions About Debt Recovery

Dealing with debt collectors can be scary, especially if you don’t know the rights and legislations you have with collection agencies. Their services are often shunned due to there being a lot of misinformation about debt collectors, how to deal with them, and what they can and can’t do when collecting a debt.

Unfortunately, believing the widespread untruths about debt collectors can damage your credit, put you at risk of a lawsuit, or even lead you to pay a collection that you really don’t owe. It is high time we dispelled some of those misconceptions that have been so deeply engraved into our hearts and minds.

 

#1. Debt collectors are crass people who aim to make a debtor’s life miserable

Debt collectors are actually limited by law as to the extent they can reach while doing their job. Also, they are very civil in their communication methods to ask debtors to pay back what they owe.

Whether it is by mail, post or face to face meeting, they tend to have a calm, friendly approach when requesting repayment of debts.

 

#2. Debt recovery services are too pricey

The truth is that most debt collectors work on a success-only basis so they will only get paid once they have collected your debt. The price you will pay for their services will be minimal compared to the amount you would lose if you had to write the debt off as uncollectable.

This gives you a pocket-friendly solution while mitigation the hassle it takes to recover your debt.

 

#3. The debt recovery agents are always legitimate

Sometimes, dishonest debt collectors pursue consumers for bogus debts or debts that have long been paid or cancelled. Fortunately, you can use the debt validation process to demand that collectors send proof of your debt before you pay. It’s a good idea to request debt validation before you pay any debt collection.

 

#4. It may elicit feelings of distaste from the debtor

As a debt collecting agency, they should be just reaffirming their obligation to pay while explaining the adverse impact their lateness will have on a client. Although it is true that some might not like the fact you’ve instructed a debt collection agency, you’ve only done so because they haven’t paid you in the first place. You’re perfectly within your rights to do what you can to get what’s rightfully yours. This will hopefully set you at ease.

 

#5. Debt collecting agencies are only practical with bigger companies

Even smaller businesses, especially those that heavily reliant on cashflows will require a competent third party for debt collection. This is to make sure they do not do things that are out of their depth.

 

#6. A solicitor is more effective

The legal system has its unassailable place in the order of things in debt collection, however, their part is expensive and arduous. Capable debt collectors can get the funds back without much hassle or damage to your pockets. They also pack under their belts their expertise in this niche market.

 

#7. Debt collection is only for old debt

It has been proven that the earlier a debt is referred, the more likely it is to be collected. So instead of following a debt for months, professional debt collection services can step in to chase down the money down the trail of debt. This saves you time and maximizes recovery time for debts.

 

#8. A debt collection agency is a last resort

Reaching out earlier to an agency goes a long way in mitigating the risk of a potentially more significant problem in future

Although the process of debt collection is an untenable one, it really helps to elicit the services of a debt collector. It also imperative that all relevant personnel in the business environment have an idea of the framework and rules pertaining to debt collection so as to prevent future issues. Elicit debt collecting services to go to reduce the write-offs of turnover uncollectable.

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