Many companies have their in-house debt collection branches, whereas others prefer hiring the services of specialized agencies. Debtors are intimidated by the debt collection agencies, as they know what powers are assigned to these types of agencies. Surely, there are some unethical agencies, whose only motive is to make the debtors believe that they possess powers far greater than they have, but that, of course, doesn't help the state of affairs.
There are two ways to pay debt collection agencies. First one is to pay them a fixed amount, while the second one is to pay them a decided percentage of the debt collector. A lot of agencies, in fact, follow the tradition of purchasing some debts right away. Well, this simply implies that if money is owed by a debtor to a company, and that company sells that debt to a debt firm, then legally the debtor would have to pay that debt to that debt agency.
By selling a debt to an agency, the company gets some percentage of the total debt. Whatever amount the agency receives from the debtor is kept by the collector. Since the agency’s top priority is to collect more amount than what they have paid to the company for that debt purchase, they uses all types of tactics and often choose unfair practices to match its objectives.
Debt collectors are neither allowed to trespass your property nor take the possession of your belongings. In fact, the one thing they can demand from you is money. The situation is that they keep contacting the debtor endlessly through calls, and the dishonest collectors follow the approach to deliver threats to debtors with the intention of recovering the dues.
On the contrary, a professional debt recovery agency believes in establishing a meaningful relationship with their debtors, and thus starts the negotiation process for the debt recovery. In a number of such cases, the debtor can expect a fair part of the debt to be written off by the agency.
Debt collectors are not supposed to call debtors at odd hours, like early in the mornings or late in the evenings. Though they may contact you at your workplace but they should stop doing that when being told that it is not allowed to accept personal calls at your workplace. Apart from this, the collectors are definitely not permitted to harm, threaten, or be abusive to you in any way possible. Nor can they make false claims regarding your debt, or lie about their legal rights, possessing your assets.