Debt Collection Process

Debt Collection Process

debt collection process
REVENUE GENERATION

Turbo boost your revenue and nurture customer relationships with our personalised Revenue Generation Programmes.

DEBT COLLECTION PROCESS One’s debt is generally not sent to a collection agency until they are at least 180 days late on a bill. Collections can hurt one’s credit score but one can improve that as soon as the debt is paid off. One simply has to be certain about working with a legitimate debt collection agency before the payment is made.

The process of debt collection varies on the basis of the creditor, but usually, one can expect the following:

1. A note is received from the creditor stating that one is past due. This is done generally by the creditor’s in- house collection department.

2. One’s creditor will move their account into a ‘charge off’ status – which usually takes place after no payment is made for 180 days. If the account is of a credit card, one will no longer be able to make use of their card. This negative demarcation will remain on one’s report for 7 years.

3. One’s debt is then sent to a collector. One’s creditor will hire an agency that will help in the collection of the payment. They might even sell one’s debt to this agency – therefore ensuring that the creditor has no more involvement in the future process. One would then be working on paying the debt back with the collection agency alone.

4. The collector makes contact to verify one’s identity. They can ensure this via mail or phone and can further involve contacting family, employers, friends and peers to confirm one’s identity. It is however noteworthy that they are legally only allowed to discuss one’s debt with only the person concerned and nobody else.

5. One receives from the collector a written debt validation notice – after which one’s identity is verified – and then one receives within 5 days, a letter proclaiming the original creditor, the owed amount and next steps of the process.

6. One will continue to receive phone calls and letters from the collector until they agree to pay their debt off.

7. One communicates with the collector and agrees to return the debt. By this point, one can try negotiating with the collector about paying less than the original owed amount.
8. One’s account is closed by the collector once the debt is paid off to them.

CUSTOMER ENGAGEMENT IS AT OUR CORE

debt collection process
debt collection process

digital sales

Sales

Digital Sales services help clients increase profitability by using digital tools to prompt our people to make the most appropriate sales ....

Read More
Digital

Social

With the drastic shift from traditional to digital media today,
a strong social media presence for your ....

Read More
Business process management services

BPM

In today’s digitally disrupted market, where traditional revenue sources are becoming more elusive, sustainable ....

Read More

Digital

Customer Experience

We help your businesses build life-long relationships with your customers by transforming your ....

Read More
IO Chat Process

CHAT

We help our partners integrate chat with existing customers interaction channels to create a highly advanced ....

Read More
Digital

DIGITAL

We help your businesses build life-long relationships with your customers by transforming your customers’ digital ....

Read More

Let’s Partner Up!Tell us about your exciting project in the form below!

x