Credit collection has always been one of the most notorious aspects of the world of business. And with time, many steps have been amended to make debt collection effective for both the parties, the one who receives the amount and the one who pays the amount. However, with time, the ways of forfeiting are also increasing as well. This is where credit collection agencies come in.
Agencies of credit collection services are aimed towards acquiring your debts from your clients. What makes them perfect for the job is that their professional staff has the required knowledge and is trained to use state-of-the-art programs used for credit recovery. These agencies moreover provide you with full documentation of all the transactions and the necessary information which deems them legal. And all this happens within a stipulated time frame.
However, recently the Consumer Financial Protection Bureau (CFPB) has announced that it will be proposing updates to the Fair Debt Collection Practices Act, 1977 that would “modernize” debt collection practices for the present times.
Here are 6 new protocols and how a credit collection agency is better suited for them:
1.Unlimited texts but limited calls: It has been decided that calls for debt collection have been limited to no more than 7 per week. Whereas there no limit on the emails and texts. However, it is always better to opt for collection agency services that have a better knowledge of handling debt collection. They can do more in a single call which might take you many calls, texts and emails. This saves a lot of time.
2.Full Disclosure: The change requires the debt collector to give full disclosure to the client which gives them the right to dispute the debt. Moreover, the client should be provided with a list of the various aspects of the debts along with options to pay, verify and dispute the debt. In this case, a credit collection services agency due to its expertise in debt collection will be better able to provide the necessary details in the correct format. Moreover, in case the client wants to verify, the debt collection agency can provide all the details in a legal format. This may not have been possible for the hirer.
3.Expired debts invalid: Another protocol declares that debts that have the statute of limitations expired as invalid. Now it might be a bit difficult for you to chalk down what are the debts that are invalid and those that are valid. This is why hiring an agency of credit collection services comes in handy. Their systems allow them to have a clear chart of all the debts that are invalid or valid according to all the information that you have provided.
Additionals: Besides these 3, there are 3 other protocols which have also been put forward by the Consumer Financial Protection Bureau (CFPB). They are:
4.Texts must be followed by rules: Every text sent by the debt collector should have the option of unsubscribing from receiving future texts. Moreover, the debt collector should also identify themselves clearly to the client; not doing which will be subjected to lawsuits. When you opt for a BBB accredited credit collection services agency, you do not have to worry about following the rules. These agencies are experts in the field and are renowned for their work processes. So being subject to lawsuits is out of the question as they follow al rules and regulations while helping you get your debt back.
5.Do not disturb: A debt collector or an agency of credit collection services will not be allowed to contact a client through his/her email unless he/she has first made contact with that very email address.
6.Warning before being reported: In case the client is not repaying the debts or is hesitating, it has been made necessary to warn the client before reporting to a credit reporting agency. A letter or a phone call to let the client know that they are going to be reported to the credit reporting agency is strongly suggested.
Various debt collection agencies provide in-depth services like billing and delinquency management, providing credit reports, skip tracing and investigative services. Keeping these 3+3 protocols in mind will help you have a full-proof debt collection. However, it is always suggested to hire an agency of credit collection services as they have a better knowledge of it as they will be the right people to help you abide by the rules in coming year.