What To Search For When Looking To Hire A Collection Agency

When scouting for a Business Collection agency, it is critical for businesses to find a collection agency that services their specific needs. Some corporation’s may rely on collection agencies more than others. For example, a freelance graphic designer may only need to use a Collection agency’s services once during his or her entire career. However, a larger company, such as a credit card company, may require the services of a Collection agency more repeatedly.

There are a few things that institutions should look for when selecting the right Business Collection agency. These include:

Price. Not all Collection businesses will charge the same rate or the same way. Remarkably Collection agencies do, however, set their fees depending on a percentage of the total amount of the monies to be collected. For example, a collection company may charge ten percent of the total collection amount to the business that contracts it. Some collection agencies charge on a contingency basis, meaning they only charge once funds have been collected, while others can charge a upfront fee for their services.

Reliability. Not all Collection agencies are identical when it comes to reliability and effectiveness. One of the most fitting ways to decide how trustworthy a Collection agency is likely to be is to carry out a simple background check on the agency using Internet searching tools or search with the Better Business Bureau. Also, many Collection agencies will offer references or have a list of clients that they have provided services for that new clients may check before hiring the agency.

Contracts. Some Collection businesses offer contract work or a retainer for their clients. In such a case, the agency may work a defined number of hours each month for a set fee. Enterprise’s need to be sure that they require a Collection agency’s services before they sign a long-term contract or retainer contract so that they can be sure that they get what they pay for.

Methods. It is important to ensure that a Collection agency is able to use a variety of methods when contacting non-payees. For example, Collection agencies should not only be able to approach a non-payee diplomatically through letter writing and phone calls, but the Collection agency should also be able to use legal courses of action, if necessary. May Collection agencies are part of law firms, which enables them to file legal cases easily and quickly, if necessary.

Rapid Recovery Solution is a commercial collection agency.

How To Become A Sales Pro

When comparing people who are most successful at persuading, convincing or selling others on their ideas, products or services, I’ve found 10 characteristics that appear to be routine among them. Read through this list and see how many apply to you now. If you don’t find these characteristics in your current bag of traits, consider adopting them in order to hear “yes” more often in your life.

1. A Burning Desire to Prove Something to Someone: A professional in any type of business has a distinct reason for wanting to succeed. My reason was to prove myself to all the people who said I couldn’t do it. I never went to college, knowing that formal education wasn’t for me. My parents had castles in the air for me and were quite disappointed. My dad told me, “If you don’t go to college, you’ll never amount to anything.” That was my first motivational talk, and it kindled my desire to become the best and prove something to my parents. What are you trying to prove? And to whom? You must know why you’ve chosen your particular business.

2. An Interest in Others: You must truly be intrigued in other people and in making those people’s lives better if you are to succeed in business. You must get the hang of how to draw others out, making them feel important and getting to know them well enough to determine how you can help.

3. Confidence and Strength: Professionals radiate confidence and strength in the way they walk and talk and in their overall presence. They have a professional posture. They wear their clothing well. They use positive body language. If you’re not sure this is you, ask someone you trust to evaluate you and provide some suggestions for improvement.

4. Empathy: You must attune your own personal pride and need for success with warmth and sincerity. Your honest interest in the happiness of the people you come in contact with creates bonds of trust that allow you to serve not only your prospects, but their friends, relatives and acquaintances that will be referred to you.

5. A Focus on Goals: If you’re serious about your business, you’ve set your goals and put them in writing. You know exactly what you’re striving for and when you expect to accomplish it. Knowing how your future will look helps keep you focused on doing what’s productive each day.

6. Persistence: Professionals outline their time most effectively to take steps toward achieving their goals. They rely on proven systems for outlining their time and have learned effective time-management strategies.

7. Enthusiasm Through Difficult Situations: The past can’t be altered and the future can’t be controlled, so you must live for today, doing the best you can to make each day a day of accomplishment and fulfillment. When you run into a difficult situation that’s draining your enthusiasm, lay it out clearly in your mind or on paper. Then step back from it and let your emotions recalibrate to normal. Then take another look at the situation with a clear head. You’ll be pleasantly surprised in most cases that it really isn’t as bad as you thought.

8. A Positive Attitude: Keep yourself in a forward-looking shell and avoid jealousy, gossip, anger and negative ideals. Don’t allow negativity to steal your energy or tempt you to stray from your chosen course.

9. An Understanding that People Come Before Money: Successful businesspeople love others and use money instead of loving money and using people. They understand the old adage that you have to spend money to make money, and that persuasion is a people business. They invest wisely in things for the good of the people they serve.

10. An Investment in Their Minds: Business professionals are lifelong learners. Congratulations! I know you have this trait simply because you’re reading this article. Set a goal to be a lifelong learner, and you’ll never have a dull moment. Plus, you’ll achieve tremendous success in whatever you set your mind to studying!

Rapid Recovery Solution is a national debt collection agency.

What Are Statute Of Limitations?

Statute of Limitations on Debt Collection is the amount of time that creditors have to collect their debts by suing you in court and by other legal methods. Once the statute of limitations period is over, the creditors cannot sue you in court. However, the debt that you owe STILL REMAINS. Do not think that once the statute of limitations period is over, your debt will disappear. It will not! Creditors can collect their debts owed via other legal methods like a debt collection company.

We should point out that there are NO Statute of Limitations on the following types of debt owed: Child support due payments, Federal & Local state taxes Parking fines, illegal fines or Federal Student Loans.

Each US Statute has its own statute of limitations periods. Generally speaking, here is the statute of limitations on the following types of debt: Auto Loans: Debt owed on auto loans generally expires in 6 years. Unsecured Debt: 3-6 years after the last missed payment by a consumer, or last tracked activity.

The moment you sign that debt agreement, for example a car lease document, a personal loan or other types of loans, the Statute of Limitations period begins. However, this rule varies state by state. Some states also allow the ‘adjustment” of this period. For example, a person living in Alabama has credit card debt of $33000 and does not make a single payment for 3 years. Now in the state of Alabama, the statute of Limitations period is 6 years. If that person travels out of the state of Alabama (say to Mississippi) for 1 year, then his statute of limitations period STOPS up until he returns back to Alabama from Mississippi. Upon his return to Alabama, this period resumes again (3 more years).

Also note that after 3 years of having not made a single payment on your debt, you start making payments again. This new payment automatically resets the statute of limitations period to 0.

We will now abbreviate the word statute of limitations as SoL. Consider another example:

You sign an auto financing contract on February 2nd, 2005 where the first payment of $300 is due on March 2nd, 2005. In March, you never make a payment towards your debt. The SoL expires on March 2nd, 2011 (assuming you live in Alabama where the SoL period is 6 years). Why March 2nd? This is because March 2nd was the last time you made a delinquent payment on your loan, or this was your last missed payment. The SoL period starts counting from your last missed payment.

Now assume you receive a call from a debt collection company that instead of paying $300/month, you pay $150/month. You receive this call on March 1st, 2008 (2 years have expired on the SoL period). This offer sounds pretty good to you and you indeed do make the payment! Hey! The SoL period at this point automatically resets to 0 and will run for another 6 years!

To recap, every single payment you make towards credit card or personal loan debt resets the SoL clock. This resetting of the SoL clock applies only to unsecured debt and NOT secured debt. This is because in Secured Debt, the lender will simply confiscate your collateral (a pledged home, your car, etc) and will not have to deal with collection issues.

If your lender demands payment from you after the SoL period of collecting the debts is legally over, you will not have to go to court. The court will probably call off the case as soon as the Judge finds out that the SoL period is over. You should write up an “Expired Statute of Limitations” letter to your creditor and inform him that the SoL period is over.

Many people confuse the Statute of Limitations Period of Debt Collection with the SoL period for Credit Reporting. For instance, consider you live in Arizona where the statute of limitations period is 3 years. After 4 years, you can defiantly refuse to pay that debt and the court will rule in your favor. However, according to the rules defined in the Fair Credit Reporting Act (FCRA), your delinquent debt will be shown for up to 7 years (since your last delinquent or missed annuity payment).

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

Zombie Debt Is Hard To Kill

Like the phoenix that rises from the ashes, so does so-called zombie debt. A consumer may think it’s dead, but it keeps coming back to haunt.

“Zombie debt is a phrase to describe all debt that a consumer had forgotten about or never even owed that comes back to haunt them,” said John Monderine, of Rapid Recovery Solution, Inc.

Joan Baker has been tormented for years as collection agencies hassled her about debt that was not even hers to begin with. More than a decade ago Baker had her identity stolen and since then debt collectors have been stealing her peace of mind.

“It is a nightmare. It won’t go away,” Baker said. “I had knots in my stomach. I was on the phone for hours.”

Baker reported a fraudulent $5,000 charge and still the debt collectors were persistent. When she refused to pay, they went after her credit rating. She would clear her name with one company but the cycle would start up again because her debt would be sold to a different collection company.

Baker finally reluctantly sued the aggressive collection agency for fraud five years ago. Baker was awarded $40,000.

Her experience isn’t an isolated one.

When Larry Randazzo missed a Verizon bill for 11 cents, it morphed into $4,000 seven years later.

Randazzo said the collector backed off when he made it clear that he knew his rights.

“If they are going after me, someone who has the resources to fight them, what are they doing to people who don’t understand their rights?” he said.

“I think what I did was make them aware that I was aware,” Randazzo said.

Almost all banks sell old debt. For example, a bank might sell a credit-card debt worth $10,000 to a debt collection company for only $100. Then, the agency turns around and aggressively tries to collect and whatever it receives is mostly profit.

This year more than $100 billion of “junk debt” is expected to be bought and sold on the open market, according to a report by debt collection advisory Kaulkin Ginsberg. A debt collection trade association said it polices its members.

“Once we determine that the complaint is against a member of ACA International, what we do is seek to work with the consumer and the debt collection agency to identify a solution,” said Rozanne Andersen, executive vice president of the Association of Credit and Collection Professionals.

How to Protect Yourself

First, ask for something in writing.

Consumers should know the statute of limitations in their state. Many allot about seven years where you cannot be sued or have your credit rating destroyed.

“If a consumer knows the debt is past the statute of limitations, they should not pay it,” said Mauro.

Also, you should never let a collector debit your account because the money can often be difficult to get back.

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

Illegal Debt Collection Practices

The government is stepping up as debt collection scams rise. In recent news, Buffalo New York has been home to a number of unlawful debt collection practices, and authorities have arrested at least twelve people. Although the vast majority of collection agencies are legitimate and good for the economy, there has been a rising amount of deceptive and illegal practices.

Agents in Buffalo have been caught calling up debtors on the phone and posing as law enforcement. They have threatened to send people that owe money in jail, or even take child custody away from them. And it doesn’t stop there.

A recent civil case imposed a $675,000 penalty ever imposed on a debt collection business, for illegal and false practices. This includes harassing and lying to debtors, disclosing their debt to third parties, and depositing post dated checks early. These practices were accompanied by fake claims from agents saying they were lawyers or other figures of authority.

In addition to refusing to reveal the address or phone number of the “company” these agents even went as far as to call individuals who did not owe any money at all and attempted to collect from them. Despite claims that it was individual workers acting fraudulently, the Federal Trade Commission went after the business owners and won a case that imposed the biggest penalty ever for debt collection agencies.

To avoid being a victim of fraudulent collection agencies, it is crucial to know your rights. A collection agency can not seize a debtor’s assets, bank accounts, or paychecks. They can never get a debtor fired from their job, and cannot make any kind of public announcements concerning the debt, and they can definitely never threaten or engage in violence.

For more information, refer to the Fair Debt Collection Practices Act, which outlines the laws and regulations of debt collection.

Mallory Megan works for a debt collection agency. She also writes articles on business, finance, consumer spending and collection agencies. Click here to get your own unique version of this article with free reprint rights.

Fabricated IRS Email Scam

Tax season is here and so are the cyber crooks. IRS plots are circulating, the latest one involving an authentic looking email from the IRS that states that you can get your tax refund on a Visa or a Mastercard. It asks for your credit card number, your social security number, credit card expiration dates, card verification value numbers, amount shown on your tax return, filing status and other personal information that might be helpful to them.

An example of the phishing email can be found on the IRS web site.

“After the last year’s calculations of your fiscal activity we’ve come to the conclusion that you’re able to receive a tax refund of $78.87. Please submit the tax refund request and give us 6-9 days to process it. Access the form for your tax refund by clicking here. – Regards, Internal Revenue Service.”

The IRS does not notify taxpayers of refunds, or any other payments that may be due, by email. Rather than click on the link in the message, you should forward the email to phishing@irs.gov, and erase the original from your email account.

IRS schemes work one of two ways: scammers send unsolicited e-mails that seem to come from the IRS and tell recipients that they have refunds that are due. But first they need to click on e-mail links and provide needed information, which they will use to steal a victims identity.

The second version is an email that claims to be from the IRS Criminal Investigation Division telling the reader that they are under investigation for false tax returns. To learn more about the complaints against them, consumers click on the links which have Trojan horse codes.

These codes take over computer hard drives and permit scammers to remotely access the computers and use them to send spam email among other things. If you ever do receive unsolicited emails from the IRS, they urge you to forward them the email.

Mallory Megan is employed by a debt collection company. She also composes stories on business, finance, consumer spending and collection agencies. Get a totally unique version of this article from our article submission service

Debt And Bankruptcy

With consumer debt at an all time high, owing money can seem overwhelming. Many people have looked into the internet and have seen advertisements touting debt relief as a quick fix. Enticing as these ads may seem, it is important to be on the lookout for the validity of the claim.

Most of these boast a quick fix, but that quick fix might be bankruptcy. Yes, bankruptcy is one way to address your financial issues, but in most cases it should be a last resort. The fact that you claim bankruptcy stays on your credit report for ten years which means that your chances of getting credit, jobs, a place of residence, or insurance are significantly lowered.

It’s a good idea to consider other alternatives before deciding to claim bankruptcy. Speak with your creditors. Oftentimes a re-payment plan can be worked out that is modified or can be paid in installments. Credit counseling services can work with you and your creditors to make debt repayment plans.

If you are considering a second mortgage, be careful. These loans require your house as collateral. Bankruptcy can stop foreclosures, debt collection activities and it may get rid of unsecured debts. Exemptions are provided that let you keep certain assets. However, personal bankruptcy does not usually eliminate child support, fines, taxes, alimony and in some cases student loans.

Claiming bankruptcy usually will not let you keep your property if your creditor has a security lien or mortgage that has not been satisfied. A relatively new change in bankruptcy laws creates certain tasks that you must complete before you can even file for bankruptcy, no matter what type of bankruptcy. First, you need to get credit counseling from an organization approved by the government within six months before filling.

Keep in mind that in some cases you must pass a test that requires you to confirm that your income level doesn’t exceed a certain amount.

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

Changes Make It Rougher To Give Credit Cards To College Students

Due to the fresh credit card modifications that are starting up next year, card issuers will have a hard time getting teenagers on college campuses to apply for credit cards without their parents’ knowledge. As students arrive on campus, card issuers will be there to speak to them at many schools.

“Issuers will try to continue to market to college students between now and the time the legislation takes effect,” said Bill Hardekopf, chief executive of LowCards.com, a site that tracks cards. That means instructing them to budget and handle a checkbook and debit card precedent to having a credit card.

Card issuers main target goal are young adults because people tend to be attached to their first card, said Christine Lindstrom, U.S. Public Interest Research Group’s higher-education program director. Plus, young adults are more expected to carry revolving debt and pay late, creating more interest and fees for the card issuers, she said.

Card issuers also will need a co-signers approval to increase credit limits of a cardholder younger than 21. And issuers won’t be authorized to offer T-shirts or trinkets to entice students. Some credit experts say students need a card to start building a credit history and score.

But there’s no need to rush this, and it can ricochet if students mismanage cards. Young adults should worry less about their credit score and focus more on building good financial habits between ages 16 and 21, said Craig Watts, a spokesman for FICO, the company that created a generally used credit score. “The credit score will take care of itself,” he says.

A survey made public in April by Sallie Mae reveals that many young adults aren’t knowledgeable managers of credit. Undergraduates on average carried record card debt of $3,173, or 46 percent more than four years earlier.

Several schools, out of concern for students, don’t admit marketers to pitch cards on campus. After a few years of living on their own, paying bills and managing credit, they can apply for a credit card under their own name when they turn 21. Never co-sign, advises Janet Bodnar, author of “Raising Money Smart Kids.” Besides, she added, students are more likely to learn money skills if responsible for their own debt.

Mallory Megan works for a collections agency that works with a debt collection lawyer. Also, she does articles on business and finance, the credit industry and collections agencies.

How Do I Know If My Medical Accounts Are Collecting Dust?

Do you know how many patients your medical collection agency collected from last year? If you don’t, how can you evaluate their effectiveness or your return? How could you possibly be aware?

Most patient balances forwarded to a medical collection agency are often considered “lost causes,” there would be little point in using such services if that were always the case. Logic dictates this much. Some of the reasons are as follows: Some patients simply do not respond to practice statements or internal collection letters. They will, however, respond when a collection agency states it will report their failure to pay to credit bureaus. Collection agencies have a number of resources on their hands. If reporting a debt to a credit bureau does not work, there are attorneys on hand that can assist you with problem consumers who refuse to pay.

Given that most medical practices acknowledge the need for collection agency services, they should evaluate and manage this collection method just like any other. Practices should have a full understanding of the terms of the agreement with their collection agency and the results of such arrangements; they must also understand how their own internal processes affect the agency’s success. And internal processes do have an enormous effect on the amount of money that you can collect.

Here are six questions you should ask when evaluating your current collection agency.

What is the total dollar value of accounts placed with the collection agency last year?

What is the protocol for turning accounts to collection?

What is the average age of transferred accounts?

What percentage of transferred accounts had balances less than $50?

How much did the agency collect last year?

What fees does the collection agency charge?

What reports does the agency provide?

Mallory McGuinness works for a collections agency that works with a debt collection lawyer. Also, she does pieces on business and finance, the credit industry and collections agencies. You are welcome to reprint this article – but get your own unique content version here.