Collections how does it work

Learn more from our other FAQ articles:. ACA International is the largest membership organization in the accounts receivable management industry. Convergent Outsourcing is a third party collection agency that works on behalf of the creditor. We abide by the FDCPA regulations and strive to make the collections process as stress-free as possible by providing top of the line customer service and support.

If you have a question about your debt, please call our help line to speak with a representative any time Monday-Friday from 7am-5pm PST. You may also fill out our online contact form and a representative will be in touch with you shortly.

If you have questions or need to make a change to your account. A debt collector may also pursue legal action if the debt is nearing its statute of limitations.

See box, below. Please note that resolution is still attempted throughout this legal process,. If the lawsuit is valid, a judgment will be issued by the court, ordering the consumer to pay the debt. But with a judgment, the collector is authorized to perform certain actions in order to recover payment. Typically, those actions would involve one or more of the following:.

The percentage garnished is based on the consumer's income and does not drain the paycheck. Placing a levy on the consumer's bank account or vehicle, allowing the creditor to seize the asset.

Placing a lien on the consumer's property. Forcing the sale of an asset in order to pay the debt. Of these options, wage garnishment is the most common action taken. It is also the only action that CBSI currently takes to resolve the debt legally. The other options, while legally available, are not very consumer-friendly. Garnishing a portion of the consumer's paycheck is effective without jeopardizing the customer relationship, as the judgment does not indicate the client company name.

At CBSI, our collection professionals treat both our clients and their consumers with respect and dignity throughout the entire collections process.

We're passionate about compliance and client satisfaction, and our recovery rate is one of the highest in the industry. Looking forward to reading another post like this one.

How do I get them to stop? Your email address will not be published. Read More. Learn More About Our Team. Skip to content Content on BetterCreditBlog. That is, some agencies have bigger incentives than others for pushing you to pay. Either kind of collection account could hurt your credit score. How To Deal with Collectors. Ads by Money. We may be compensated if you click this ad.

Fixing your credit is hard work, but a Credit Expert can make it easier! Select your state to get started. Leave a Reply Cancel reply Your email address will not be published. Collection agencies can come after old debt as soon as it's a couple of months past due and indefinitely after that.

It depends on the company collecting the debt, how much you owe and the type of debt you have. If you have unpaid past-due debt, you're typically alerted through written notices and phone calls through your original creditor. For instance, if you have an old student loan you stopped paying, your lender will make attempts to contact you to get the account current. That's usually when the transition from the original creditor to debt collector occurs.

Debt collection agencies and debt collectors will use the information on file to contact you. Your current address, your phone number and even contact information for your relatives are used. If they can, debt collectors will use personal banking information, including savings and investment accounts, to determine if you have the money to repay a debt. Some states allow wage garnishment to collect old debts. Facebook beats earnings, misses on revenue — What five investors are saying about the stock now.

France presidential election survey: Macron ahead of all candidates, but many uncertainties remain. While there are plenty of agencies that use harmful practices for debt collection, most follow the rules and go about retrieving money from past-due accounts in a professional manner. Reputable debt collection agencies will send letters to the address you gave your creditor. If there's a way to see that you've moved, agencies can send letters to your new address in an attempt to collect a debt.

Whether agencies send you letters or call, they're required to give you specific details about your debt, including:. The collector must say that you have 30 days to dispute the debt in writing. If you request the name and address of the original creditor, they need to tell you.