Compared any other industry, business debt collection industry has more complaint from consumers. Debtors usually complain that collector’s harassment. This bad reputation came because of few collectors who are problematic. But most of the debt collectors follow consumer laws and regulations.
A collector should be honest, law abiding and respectful. He should behave properly with the debtors or consumers. Once the debtor gives a written statement that he is not able to make the payment and his debt can be verified, then collector should stop asking for payment. At this point collector should send a written notice on remaining amount to be paid and the method to pay it back.
If the collector is not able to verify the debt, it will stop to collect from the debtor. In this case if it is a first – party collection agency it will inform its company to remove the respective credit report. In case if it is a third party collection agency, then it will notify the respective creditor that it has stopped the collection from particular debtor.
A professional collector being expert in his industry will have accurate and proper records from the debtor. If a loss has incurred because of theft in debtor’s side then the collector should put an effort to verify it. These debts are beyond the limitations for which a collector should not sue the debtor. A collector should not threaten or harass the debtor in any situation. They should not publicize the details of the debtor. They can help in giving different repayment plans or in worst case reducing the settlements. Meantime debtor should know about his rights on what the collectors can do to him and the things they are not allowed to do.
Sometimes creditor may fail in his efforts to collect the debt. In this case he can rely on a professional collector on the job. Debtors, who don’t respond to the calls by creditors, will easily respond to collectors and debts easily get paid. Usually 80% of the payments are collected by creditors. Remaining 20% are by collectors. Going behind the debtors in collection of payment is a time consuming job. Debtors should be contacted regularly either through letters or calls. If the debtor is really want to avoid creditors he will do it quite often. So in case of problematic debtors collection becomes very difficult. If the contract has given to a collector, they will use their own methods deal with it.