Legal And Illegal Tactics A Collection Agency Will Use: Debt Collection Basics Part Three

In the first two articles I described what a collections account was, how sending delinquent accounts out to an agency benefits a creditor, and the practice of selling an old debt to a third party collection agency.

I wrote about what type of information a collection agency will collect and use in their efforts, and also that third party collection agencies are governed by federal and state laws and are overseen by the FTC.

Some collection agencies will use illegal, deceptive and strong arm tactics to confuse and intimidate consumers including pretending that they are one of their creditors and requesting them to verify information, pretending to be an old friend or neighbor to catch a debtor off guard, repetitively calling or mailing a debtor to the point where it becomes a nuisance, or sending threatening letters or leaving threatening voicemail messages.

Legal but manipulative practices include pressing the debtor, preying on their emotions, and using vague threats like “respond within ten days or further collections attempts will follow.” Other illegal practices include making an idle threat of litigation or pursuing litigation when the debt collector has no intention to, threatening to throw a debtor in jail, threatening to garnish wages or seize bank accounts when they have no authority to, lying about the amount that is owed, or asking for more than what is owed are used as well.

For the collections industry, time is the enemy and a good bill collector is completely aware of this bit of information. Their main task is specifically to get money as soon as possible.If you are talking to a debt collector, keep in mind that at any time you have the legal right to tell them you are busy and will call them back if you are flustered, hang up, cool off, develop a game plan, and contact them later. An aggressive debt collector will ask you why you can’t make payment arrangements today.

Rapid Recovery Solution is a commercial collection agency that writes stories on medical collection companies. Free reprint avaialable from: Legal And Illegal Tactics A Collection Agency Will Use: Debt Collection Basics Part Three.

NCO

Like any other collection agency, NCO Financial has been notorious for harassing people for collecting debt that has not been paid off. They record negative items on our credit reports and ruin our credit history in the process.

Consumers should not give in to NCO’s harassment and let them take control of our lives. We can do certain things to get them off our backs.

1. Send NCO a letter to notify them to stop harassing you. Make it very clear to them that the creditor you owe the money to is the company you will deal with, not with any other third party who is trying to get involved in this process.

2. If they continue to harass us after getting that letter, it would be wise of us to hire an attorney who can work on our behalf, use his/her expertise on this matter and let them firmly know about the same course of action.

3. It is likely NCO might stop contacting us if we can negotiate some kind of agreement with them. Once we enter into an agreement, we should let them know in writing that they will receive their first payment only after the negotiated terms are documented and sent to us in writing. It is very important to document everything.

4. Keep in mind that if all fails, you can always file for bankruptcy. But that should be your last resort alternative. Do not try to rush to this decision. Weigh all your options, do whatever you can to come to an agreement with them.

Just like NCO has the right to contact us to make debt payments, we have our rights to defend as well. We have the right to dispute the bill, request NCO to stop calling us at inconvenient times, make a payment via mail and last but not the least get help from another company to help us deal with NCO.

Attorneys suggest various methods to remove the negative items from our credit reports. We can’t do anything in haste, it is a time consuming process but we certainly can enter into an agreement with NCO to work towards it.

1. Disputing the account with the credit bureaus might be a very wise thing to do. We should most certainly dispute any questionable item that is reflected on the credit report.

2. NCO cannot expect you to pay off the debt without proving to you that you really owe them the money. Try the debt validation process, give NCO the chance to prove the validity of the debt they listed on your credit report.

3. If you owe money to them, you would need to pay them eventually but have realistic ideas about what you can afford. Work out a payment plan with them, let NCO know that this is what you can afford to pay; it is likely they will work with you.

4. Always be patient with NCO or any other collection agency. Their ultimate aim is to get the money from you, by being patient and calm; you can work with them and eventually have them remove the debt from your credit report.

No matter how bad they can be while harassing people, I am sure they will not want to ruin their reputation. It is up to us to make informed decisions, stand up for our rights. Chances are NCO Financial will come around, revise their ways of doing business with their customers.

You are not alone if you are being harassed by nco financial. You should outplay nco financial at their own game, you most certainly should.

Debt Collection Company Gets Healthy

A debt collection agency founded in California started a scheme to motivate and educate employees to live healthier lifestyles in early January. There are twenty eight employees at the agency; more than half are currently participating in the implementation.

All of the parties involved have made a goal to lose ten percent of their total body weight by the end of June. Every Monday morning the workers have weigh-ins and employees have an opportunity to win two cash prizes for losing five percent of their body weight by the end of March, and then another five percent by the end of June.

The company’s executive alleged that he had been considering founding the program for quite some time. He declares it perfect for the stereotypical office setting that is fraught with unhealthy eating, and employees taking breaks to get fast food. He made note of the fact that attempting to make employees lose weight was more cost efficient than actually getting health insurance for his workers.

In a scheme to get employees to have healthier lifestyles, the agency hosts sporadic lunches and “education track meetings” every week. The meetings are designed to assist employees target and plan for their weight loss goal. So far the program has been successful. The collection company has collectively lost 72 pounds to date. That’s the size of a small child.

The program tries to establish a better all around worker. It logically follows that a less stressed worker will be more efficient and motivated. Even though a very relaxed debt collector might not seem like they would be the most efficient worker, it all seems like a good idea. As the government tries to sort out the health care system, perhaps it is time that more companies like this take this route. If employees cannot get health insurance, health initiatives and goals at work could be the next best solution.

Mallory Megan works for a debt collection agency. She also writes articles on business, finance, the credit industry and collection agencies. Also published at Debt Collection Company Gets Healthy.

Foreclosures On The Increase

Research recently collected by RealtyTrac Year-End 2009 Foreclosure Market Report indicates that 3,957,643 foreclosure filings were reported on 2,824,674 United States properties in 2009. Included in this research was scheduled foreclosure auctions, default notices and bank repossessions.

This is a twenty one percent increase in land from statistics in data that was collected in 2008, and a one hundred and twenty percent increase in total properties from 2007. Additionally the report indicated that one in forty five housing units, 2.21 percent, got at least one foreclosure filing in the year of 2009, up from 2008′s 1.48 percent and 2007′s 1.03 percent.

In the month of December alone, foreclosure filings have been reported on 349,519 properties in December. This a fourteen percent jump from the previous month of November and a fifteen percent increase from 2008. But despite the fact that there was an increase in December, foreclosure actions in the fourth quarter of 2008 has decreased by seven percent.

Of all of the states in America, Nevada took the nation’s highest state foreclosure rate; more than ten percent of housing units received at least one foreclosure filing in 2009. This is Nevada’s third consecutive year at the top of the foreclosure list. Nevada’s foreclosure activity in the month of December increased twenty seven percent from the previous month, however it still was down by twenty two percent from December of 08.

Arizona took the nation’s second highest state foreclosure rate in 2009 with six percent or more of properties that had at least one foreclosure filing during 2009, and Florida took the nation’s third highest foreclosure rate at 5.93 percent of its properties receiving at least one foreclosure during the filing year.

This raises concerns in the debt collection industry. Recent trends have noted that consumers are pumping up their credit debt and low balling their assets to receive lower payment plans. The fact that they are maxing out their credit cards to receive lower payment plans does not look promising.

Mallory McGuinness works for a debt collection agency. She also writes articles on business and finance, consumer spending and collection agencies. Free reprint avaialable from: Foreclosures On The Increase.

Mutual Funds For Beginners Part One

Are you a beginner when it comes to the stock market? No problem! This series of articles on mutual funds will make it easy for you to understand what a mutual fund is, what it is all about and whether it is worth your while to invest in one. My first three articles are called “Mutual Funds For Beginners” and they lay down the basics.

The next one is called “Expenses Associated With Mutual Funds” and it covers the basic things you can expect to be charged for if you decide to invest in a mutual fund. The last two are titled “Is Investing in a mutual fund worth your while?” and they go over the advantages and disadvantages of mutual funds. First let us break things down to a molecular level and talk about securities. The fancy definition of a security is a negotiable instrument representing financial value.

This definition is quite esoteric so let’s look at an example of a security to help you get a better idea of what one is. A stock is considered a security. Stocks can be bought or sold, and thus have financial value, and a share of stock literally means that as a stockholder you “share” a portion of ownership in the business whose stock you own. Bonds, which are contracts to pay back money with interest on specific dates, are securities too. If you hold a bond, you know that you are going to receive money on these set dates, so bonds have financial value as well.

Stocks are bought and sold at exchanges called stock markets, and bonds at bonds markets. A bonds market is usually very different from a stock market. If you were looking to invest in stock, or sell the stock you have, you would enlist the help of a stock broker who would charge you a commission for performing this work for you.

Typically, unless you own stock from the company you would like to buy from already, you are going to want some sort of a broker to help you do this. The same goes for bonds – you are going to want a dealer. Now that we have the very basics down, let’s go over mutual funds. See my article “Mutual Funds For Beginners Part Two!

Mallory Megan works for Rapid Recovery Solution and writes articles on nationwide collection agencies. This article, Mutual Funds For Beginners Part One has free reprint rights.

Medical Collection Firms Help Software Developers Sell Product

iVolution Medical Systems, a West Hampton, New York located health care systems firm, is taking a different approach. The 4 year-old company, started by former Wall Street consultants to the health care industry, entered the medical receivables space by receiving experienced billing and collections companies. First there was Professional Health care Billing Services (PHB) of Palm Springs, California in March, and then Continental Collection Services of NY, earlier this month (iVolution Medical Systems Acquires Continental Collection Services, May 13).

Despite the regulatory uncertainty surrounding the health care industry, iVolution co-chair and chief financial officer Vince Pipia told insideARM that the medical billing and collection industry is ripe for consolidation. We think (medical billing and collections businesses) are all good cash generators, and they have a coveted relationship with physicians, Pipia said.

Distinctively, its that relationship that Pipia wants to benefit from to provide combined billing and collections services to health care providers as they transition to health care information systems. Electronic medical records, billing, e-prescriptions and instant messaging are amidst the solutions offered by the company. Our goal is to build and grow medical billing to cross-sell technology.

In the year since iVolution introduced its products to the market, Pipia said some of iVolutions technology is gaining recognition among its pediatricians. Likewise, iVolutions billing and collections clients are appreciating the benefits of its free instant message technology.

Since conversion to electronic medical records was labeled as the one change that the entire health care industry agrees can boost efficiencies and lower costs, dozens of companies have been working to develop technology solutions. Still, only eight % of health care providers operate fully functioning electronic medical record systems, Pipia said.

Most EMR (electronic medical records) are expensive, Pipia said. Analyst Michael Klozotsky said he expects more ARM industry consolidations and acquisitions as some company owners look to leave the business to avoid regulatory changes that will come with health reform. However, the health industrys aspiration to use more health information technology and the Obama administrations commitment to helping fund the transition leaves plenty of opportunity for companies that can help health care providers comply with new technology mandates, he said.

Rapid Recovery Solution is a commercial debt collection agency.

Bankruptcy: What Is Automatic Stay And How Does It Protect You From Creditors

U.S. Bankruptcy Code imposes something called an automatic stay the moment that a petition for bankruptcy is filed. The automatic stay will usually halt the commencement, enforcement or appeal of actions and judgments against a debtor from the creditors they owe money to that are attempting to collect these debts incurred prior to the bankruptcy petition. In addition, the automatic stay protects property of the bankruptcy estate itself from collection actions and proceedings.

If a creditor violates the automatic stay are voided out. Any violation of the stay may cause the violating party to incur damages for the violation. But, like every complicated law, there are exceptions. A creditor may be permitted to take their collateral if they obtain permission from the court first. They’ll get this by filing a motion for relief from the automatic stay.

After a petition is filed, the court will grant the motion or provide security to the creditor, which ensures that the value of their collateral won’t decrease during the stay. Without the protection of the automatic stay creditors could hypothetically race to the courthouse in order to improve their positions against a debtor. If this happened, and let’s say that a debtor’s business was facing just a temporary crunch, it might not survive a “run” by creditors when their business could otherwise be salvaged. A run may also result in waste and it might be unfair to similar creditors that are owed money too.

There are three kinds of avoidance actions, and all of these are intended to limit the risk of the legal system prompting the downfall of a financially unstable debtor who hasn’t yet declared bankruptcy. The bankruptcy system will generally reward creditors who continue extending financing to debtors and will discourage creditors from ramping up their debt collection efforts.

Despite the seemingly simple nature of these rules, a couple of exceptions exist in the context of each category of avoidance action.

Rapid Recovery Solution is a third party collection agency. Get a totally unique version of this article from our article submission service

Fake Debt Consolidation Schemes To Be On The Lookout For Part Two

In the last article I spoke about seemingly disreputable debt consolidation schemes that you should be aware of. Read on to find out more about these scams….

In the meantime, your creditors are not being paid. Unfortunately, while you are accumulating that payment, you are not paying your bills and you may be delving further and further into more debt.Instead of taking this gamble check out a not for profit credit counseling firm that might charge you only twenty dollars, if anything. Instead of billing the debtor, these non profit counselors will generally get what is called a fair share percentage payment from your creditors after your debts have been paid.

Finally, and most importantly, DON’T invest your trust in the debt consolidation counselor who tells you that “We will handle everything. You should cease all communication with your creditors.” Even though the fact that the idea of not speaking to creditors and ignoring their mail sounds like a real load off of your back, ultimately, it is your debt and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company.

It is crucial to keep in mind that the creditor is the one with whom you signed your contractual agreement. When you allow all of your statements to be sent to the debt settlement company, you give up that control. You don’t have any idea how much in interest and late fees are being tacked on. You also won’t know if your debt has been moved into collection.

A few final words of wisdom. If you believe that you need debt settlement, try debt management first. Call up your creditors and request suspended payment, reduced interest or any other payment terms that may suit your financial situation in a more favorable light. Even though it might seem like a long shot, or a pain, it is always very important if you are about to miss a payment to call your creditor and say “Listen, I can’t make this month’s payment. I’d like to work something out with you.

Rapid Recovery Solution is a medical debt collection agency. Get a totally unique version of this article from our article submission service

Two Top Prosecutors Go After Debt Collection Agencies

In recent news it was revealed that top legal prosecutors in Louisiana and Washington made announcements of actions they had taken against accounts receivable management firms and their owners and managers.

Louisiana’s attorney general James Caldwell announced on Friday that his office had gotten a hold of injunctions against two collection agencies and their owners. On the same day, Rob McKenna, Washington’s Attorney General said that his office had settled charges with a collection company that had promised to stay on the straightened arrow. In a press release, Caldwell’s office said that in late December they had obtained an injunction against Bush and Kennedy, Inc, a Baton Rouge based collection agency. The order he won placed restrictions on the business, banning them from operating further, and specifically, ordered that two of the firm’s principals, Quay W. Pattott Jr, and William S. Fesguson were banned from conducting business together.

Late last week, a judge slammed Ferguson and Parrott with added injunctions as per the request of Caldwell’s office. Ferguson is banned from using unfair and deceptive practices and acts at his current place of business, Franklin, Grant and Associates Incorporated, a collection company based out of Metairie Louisiana. Parrott is completely restricted against conducting any new business at his new place of work, Metairie based Halsey and Associates, LLC.

McKenna’s Washington office said that Topco Financial Services Inc, a Washington based collection agency agreed not to threaten, harass or curse out consumers as part of a settlement. The collection company must pay around $38,000 in legal fees and penalties. An additional $82,000 in fees and penalties were suspended pending that the company agrees with the settlement terms.

As per the agreement, Topco is restricted from harassing, intimidating, threatening and embarrassing debtors, including using profanity. They are banned from implying that failure to pay a delinquent bill will result in suspension, a revocation, or impairment of the debtor’s driver’s license. They are no longer allowed to threaten debtors with impairment of their credit rating. However, the company is allowed to legally report debts to credit reporting agencies.

Mallory Megan works for a debt collection agency. Also she writes stories on business and finance, consumer spending and collection agencies. This and other unique content ‘long island rapid recovery solution’ articles are available with free reprint rights.

Bad Debt- Getting The Monkey Off Your Back

Bad debt can sometimes feel like a monkey on your back. It’s constantly on your mind, and oftentimes the stress can be crippling. You may be able to take solace in the fact that you are not alone. There are thousands of people just like you in the United States that are going through the exact problems.

Filing for bankruptcy might seem like the best choice at the moment, helping you to get around loan payments. But before you jump the gun, think long and hard. If you end up filing for bankruptcy, this will stay on your credit report for ten years and any attempt to improve credit, obtain a job or residence, or car are futile.

Something to consider is professional help to deal with your credit card debt. This is imperative, so do some research.Consult the internet, talk to financial agencies and get recommendations from others who have gone through the same problems. Be sure that your debt settlement agency is legit. Many tout promises of debt annihilation but will merely tell you to file bankruptcy and charge you to do it.

Once you find the perfect debt settlement agency, work with them step by step. One of the great things about this is that the company will work and communicate with the bank or card company for you. That means no more dealing with phone calls from the banks or collection agencies.

Also, debt settlement corporations have a professional relationship with the banks and other establishments that can aid you. They will let the creditor know that you are on the verge of bankruptcy and that they will not collect anything if this is going to happen. The creditor will surely work out a re-payment plan.

So, now you see why considering help from a professional to settle your debt makes a great difference. It is possible to use this way to obliterate all of your credit card liabilities; one at a time from the card that charges the highest quantity of interest to the card with the lowest.

Mallory Megan works for a debt collection company. She also composes articles on business and finance, consumer spending and collection agencies.

Next Page »