Most people have negative images of debt collectors. Some even believe that debt collectors are dark-hearted individuals that enjoy threatening families and draining their bank accounts. While it might be easy to portray debt collectors in a negative light due to their past behaviors and relentless methods, it’s necessary to keep in mind that people borrow money of their own volition. If a debt is owed, at some point there was a promise made that it would be paid back. Creditors and banks have every right to the money that is owed to them, and the job of a debt collector is to reclaim money that is not willingly being paid back by the individual that owes it. The debt collection process usually consists of three different phases.
During the first six months that an individual owes a debt, the debtor will be contacted by an internal collector also known as a first-party agency. The debtor is known as the second party. At this early stage, there is no middleman in the game and the lender is more lenient with the second party, it’s a good time to settle the debt. If the second party makes no move to resolve the debt, it will then be outsourced to a third-party agency, but is still owned by the original creditor.
A third-party agency earns money from the creditor when they successfully collect a debt from the second party. During the third phase of debt collections in St. Louis, MO, the creditor removes themselves from the situation by selling the debt cheaply to a debt buyer. Now the creditor isn’t involved anymore, but the collection agency will still attempt to collect the debt to gain profit. As of lately, creditors are submitting their delinquent accounts to debt-collection law firms like Van Dillen & Flood P.C. instead of traditional debt collection companies in St. Louis, MO. They believe lawyers are well respected and will yield better results.
While debt collections companies in St. Louis, MO are entitled to the money owed, they are restricted in the methods they can use to collect it. The Fair Debt Collection Practices Act (FDCPA) limits collectors in a variety of ways. Collectors can only call certain times of day, are prohibited to discuss information with anyone other than the second party, and cannot by any means use a threatening tone to communicate. Visit the website for more information.
