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2/1/2011 |
| The Bill Collector as Good Guy |
| It appears that we have all been gifted with front-row seats in the stirring movie, “Global Financial Meltdown.” Riveting, wouldn’t you say? |
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The Debt Collections Process
At American Credit Association LLC, it is our goal to make working with debt collection agencies less painful so we will work with your debtors without making them defensive. That results in a more positive response and collecting more of the debt. Most debtors are circumstantial and really do want to pay their bills. Our goal is to work with them and figure out what they have to do to clear this delinquency and regain the feeling of self worth. Some debts are collected with the first contact while others may take time. This is just a sample of what happens once an account has been placed with ACA. To collect, you must communicate. Direct contact by third party debt collection agencies usually has greater impact than contact by the creditors.
STEP 1
The debtor is notified by mail and telephone that their account has been assigned to ACA, one of the most reputable debt collection agencies. All letters sent to debtors must contain required and approved language outlining their FDCPA rights.
STEP 2
Additional letters are sent and attempts are made to contact the debtor by phone. Debtors are sophisticated and known for hiding behind technology in order avoid debt collection agencies. Due to this, we may have to initiate a sort of investigation using various tools in order to locate the information needed for this contact. Many successful contacts come from this time consuming research.
STEP 3
Once we have located the debtor (please keep in mind, not all debtors can or want to be found) we will present the facts to the debtor about his or her account to show them why they are the subject of debt collections. The facts we present are based on the information provided by you, our client.
At this step we will determine the collectability of the debt. Many times the debtor will pay voluntarily if we are able to explain the debt to their understanding. If we are unable to secure full payment at this time, we will attempt to work with the debtor. In an effort to resolve the situation, we will work out a payment plan based on their financial situation. We will also explain to the debtor if payment is not made, it could adversely affect their credit rating and further collection steps may become necessary.
Step 4
If the debtor still hasn't paid (within 60 days, unless restricted by our clients we may list the account on the debtor’s credit record) after a reasonable period of time and if the file warrants it, we will suggest to our client that legal action may be necessary to complete the debt collections process. Before we do request the probability of litigation, we take the necessary steps to verify assets, employment, addresses, and the probability of recovery have been taken. NO account is transferred to a Collection Attorney (who works on our client’s behalf) without prior written consent from our clients.
STEP 5
In the event our client chooses to proceed with litigation and a Judgment is entered, (in most cases the debtor will not show or file an answer) a default judgment is then entered and the debtor will have a period of 21 days to pay before further steps are taken to collect the judgment (getting a judgment is not a guarantee of collection). Payment must still be pursued. With post-judgment debt collections, the attorney may need to file a writ of garnishment which in most cases is the garnishment of wages and in some garnishment of bank accounts, or they may file a writ of execution for the debtor's personal property.
Throughout the debt collections process the experienced and dedicated staff of American Credit Association will work diligently on your behalf to regularly call, send letters, and conduct consistent follow-up with your debtors in a timely manner. Our goal is to reduce your debt and move earned revenues back into your bank account.
If you have any additional questions please feel free to call us at 1-866-668-DEBT (3328)
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February 22, 2012
