I am not an attorney, I am a debt and judgment matchmaking expert (Collection Broker). This article is my belief, based on my familiarity in California, and laws are different in every state. If you ever demand a strategy to employ or legal advice, you should contact an attorney.
While there are wide variations in the path collection agencies employment to collect money from debtors, immediately very hardly any immediately engage in the stereotypes of abuse that were more common many decades ago. Although there are terrible apples in every profession, most debt collectors remain polite and reasonable, usually much more than the debtors.
Every collection agency starts with a letter and/or a telephone call, since:
1) A small percentage of debtors pay after they get first notice of the debt, as a hardly any know this has become serious.
2) It gives the debtor a chance to contest the debt and clarify their side of the tale, since once in a while, the debt is not valid. A hardly any examples of this are when the debtor filed for bankruptcy protection, or a judgment against them was vacated or has become expired.
3) The code requires that debtors get mailed complete or mini “Miranda” wordings, telling them of their rights, how to dispute the debt, how to contact a administration agency, etc.
The mini Miranda, has words alike to “I am DESIGNATION, of this BUSINESS-DESIGNATION, a debt collector representing CREDITOR-DESIGNATION. Data obtained during the direction of this call will be used for the purpose of collecting the debt.” Alike words demand to be included in all telephone conversations, and on all letters.
After some age has passed, usually thirty days, most collection agencies inscribe or call again, until one of two things happen:
1) They succeed in becoming friends with the debtor, and figure a contemporary or prospect payment plot. Once in a while, they will visit the debtor’s house for friendly face-to-face discussions.
2) The debtor informs them in writing to stop all communications. This is kind of like asking a painful tooth to stop hurting, since it doesn’t stop collection actions, and debtors will still receive all legal notices. Sometimes their following step is placing the debt on the debtor’s credit report. Then more waiting, and if there is no judgment yet, sometimes they sue the debtor to get a judgment. Having a judgment is the key to being able to have that a sheriff levy the debtor’s assets.
If there is a judgment, many collection agencies employ private investigators to find the debtor’s assets, and their attorneys to collect the judgment. Most collection agencies do not demand to own your debt or judgment, since they employment on your behalf.
Most collection agencies charge between 25% to 50% of what is recovered, depending on how fresh the debts are, how much is owed, and what fees they charge. At 50% there should be no upfront or any other costs, at 25% you should expect to pay some fees. Most collection agencies charge an upfront fee for unlawful detainer judgments.
A debt or judgment broker knows the best collection agencies, and brokers are simple to find with a web search.
Mark Shapiro – Judgment and debt Broker – best quality free leads for collection agencies and contingency collection attorneys.