Debt Collecting- How Does it Work?
It is safe to say that we all have an idea in our head about what a typical debt collection looks like. You’ve probably seen an exaggerated version on television or in films. The image of large, angry looking men breaking down the door of your property and stealing your belongings is a popular trope in modern media.
However, the modern debt collection process looks a little bit different to what you may have seen on the screen. The practice has evolved, and we thought we would talk about it here.
Once upon a time, debt collection involved being delivered a document outlining exactly how much money you had to pay. Debt collectors would send somebody to your office or to your home to personally inform you that you are legally required to pay back the money that you owe.
However, this is no longer the case and there are many reasons for this. One being that this is considered intimidation and could land the debt collection agency in legal trouble if they are seen intimidating somebody into paying.
Instead, the new norm is to get is an email or letter in the post. The letter will be from the individual in question, or business where applicable, who is attempting to get back the money that they owe and is likely to be a friendly request that you pay your debt.
The modern debt collection agency is bound by a series of regulations and rules. Typically, they will lean towards peaceful resolution of outstanding debt, and will attempt to reach a repayment plan with you wherever possible.
The days of someone following you, intimidating you, or forcefully entering your property to take possessions by force are long gone. Most of these repossession techniques are now illegal and a debt collection agency cannot enter your property without a warrant issued by the courts.
Gradually Increasing Sanctions
Every opportunity will be made to give the borrower time to pay back their debt without any further sanctions. A debt collection agency is a last resort for most companies, and the forcible removal of your belongings to pay for the debt is usually reserved for last resort measures.
Instead, the sanctions will increase gradually, and you will be made aware of what may have to happen if you do not pay your debt back. Every communication between you and the debt collection agency will also be carefully logged and stored to ensure transparency on both sides.
Modern debt collection has changed- it is a peaceful process and intimidation or harassment are both considered to be outdated. Instead, you will find that a debt collection agency will make every possible opportunity to communicate with you about your debt, and will look for a repayment plan which is almost stress free. Remember, you should not feel nervous about speaking with a debt collection agency, and you have a right to report any agency which is not behaving in an acceptable fashion.
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