Getting paid on time - when to use a debt collection agency
What happens when a customer decides not to repay a loan or credit card bill and has ignored their reminders about paying? In some cases, there may be a genuine reason as to why a bill remains unpaid, but in others there may be no reason at all. If this is the case, then it may be necessary to take further action in order to reclaim the debt. Using a debt collection agency can sometimes be very effective in collecting what is due.
However, using a debt collection agency should be a ‘last resort’ after all other attempts to discuss and resolve the situation with the customer have failed to yield results. In some cases, financial hardship may be to blame for non-payment of a debt, so it can often be good for customer relations to try and reach an amicable agreement that may to help the customer get back on their feet. If, however, there is a reason to suspect that non-payment is through choice rather than circumstance, then there may be grounds to begin legal proceedings. The customer should be informed in writing that this type of action is imminent. Sometimes a jolt such as this can be enough to have the customer re-commence their payments.
If not, there are a number of advantages to consider in using a debt collection agency. For example, debt collection agencies have the time, expertise and resource required to perform the job at hand and thus can allow the creditor to concentrate on their core business. However, it should be noted that the costs involved in reclaiming a debt in this manner can sometimes be as much as 10% of the outstanding amount.
In their dealings with the customer, a polite and professional debt-collection agency may manage to retain the customer - assuming the creditor still wanted to do so, though taking legal action may mean retention is unlikely. On the other hand a less professional debt-collection agency may take a heavy-handed approach and might intimidate a customer which could in turn damage the creditors' reputation.
In some cases, a debt collection agency can act as an intermediary between the creditor and the customer in order to negotiate acceptable terms for repayment or can instruct a solicitor to act on the creditors behalf should the customer still refuse to pay. In other cases, a debt collection agency might choose to settle the debt, thus taking over the ownership and enforcement of the debt themselves.
Should you need to employ the services of a debt collection agency such as the Capquest Group, you should make sure that the agency is registered with the Credit Services Association (UK) or your national regulatory body.
Best Secrets of Wealth
Does increasing your income mean that you are also increasing your wealth? Not Really! The truth is increasing your income is only part of your wealth accumulation process. Why are people earning $3,000 a month broke? In addition, there are those who earn $30,000 a month, but they are still broke.
It is a simple fact that some of them do not manage their money well; their expenses will subconsciously rise above their level of income and wipe out their savings progressively. They know that the attribute of saving money is in all of them, but many a times they are attracted by the things they want to own that will gratify them instantly. By spending on an expensive new car, 42 inches high definition Plasma television set, feature rich portable MP3 and video player, branded watch or designer clothes will surely gratify them. However, the sad truth is their satisfaction will not last for long and will start planning for their next purchase when a new model or design is release. In fact, they are gradually diminishing their wealth instead of accumulating it.
Managing and growing our wealth is such a critical skill and mindset to have that it is often ignore by most people because it is regarded as unexciting and they do not have the patience to see their money multiply every year in a long-term investment.
Let me give you an example. If you are earning $3,000 every month and able to consistently save 10% of that income, which is $300, every month and put it into an investment that will give you an annual interest of 10%, your compounded return in 20 years will be $226,809. That is the power of saving, investing and most importantly building up your wealth. So let us start saving money early, even if it is a small amount, and reduce your expenses now. Given time and patience, you will certainly see the wealth benefit along the way.
http://www.bestsecretsofwealth.com
The Credit Report You've Never Heard Of - The Fourth Crediit Bureau
You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services.
They all make the same claims:
* “Credit problems? No problem!”
* “We can erase your bad credit — 100% guaranteed.”
* “Create a new credit identity — legally.”
* “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”
Do yourself a favor and save some money, too. Don’t believe these promises. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.
Did you know that there's a fourth credit bureau of considerable influence in this country? The company is called Innovis, and you might want to contact Innovis and find out what information this company is reporting about you.
As recently as 2003, Innovis denied that it was actually in the credit-reporting business. There are numerous published reports in which the company flat-out denied that the information it gathers or sells about consumers could be used by creditors for the purpose of extending credit. Shortly thereafter, consumer advocates - like the Public Interest Research Group (PIRG) - starting insisting that Innovis was in fact a credit bureau and should have to abide by the same rules as other credit agencies.
After some outside pressure and scrutiny, Innovis now acknowledges that it is, indeed a credit reporting agency. According to published reports, Innovis primarily collects negative information about consumers: things like late payments, judgments, bankruptcies, collection accounts, repossessions, and so forth. That information is then sold to banks and other financial institutions. Well, if you do get credit offers, you certainly want them to be the best ones available, like low interest rate balance transfers, for instance.
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No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act (FCRA).
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But when companies buy data from Innovis, reportedly what they are screening for is people with "bad" credit - or at least people who used to have bad credit. This can have two effects on you. First, it would screen you out of the lists of top-tier consumers who are getting low-interest credit offers. Second, it makes you open game for getting a host of credit offers you probably don't want to get. Think about it for a minute: If a bank or credit card company is actively targeting consumers with poor credit histories, what kind of credit offers do you think they'll be making? More than likely, they'll be throwing out high interest-rate offers - above the 20% level - or solicitations for "secured" credit cards.
Again, if you're already considered a "sub-prime" borrower, you don't want to get these offers. So make sure you write Innovis and find out what information the company has about you.Unlike the other credit bureaus - that let you get your credit report online or talk to representatives over the telephone, Innovis doesn't make it easy to establish contact. The only way you can obtain your Innovis credit report is by writing the company.
To get your Innovis credit report, send them a letter asking for your credit file. Be sure to include your name, current address, and social security number. Innovis also requires your previous address for the last two years if you haven't been at your current residence for two years, your date of birth, a copy of your driver's license or a utility bill to verify your address, your telephone number, your current employer, and your signature.
About The AuthorMichael Saunders has an MBA from the Stanford Graduate School of Business. He edits a site on how to Fix Bad Credit and is president of Information Organizers, LLC.
