How does that work? When businesses pass off their delinquent acc'ts to collection agencies, are they technically "selling" that account to the collection agency? Do collection agencies "buy" accounts from businesses? Do they pay a fee to businesses to open legally open acc'ts and collect debts?
2007-05-07 13:51:34 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
Yes, they definately sell accounts. They get less money from the buyer but at least they get some money. The collection agency still goes after your money and they make a profit because they can harrass you until you pay and they have peole well know to twist arms over the phone. Caller ID works great.
2007-05-07 14:20:17 · answer #1 · answered by sweet sue 6 · 0⤊ 0⤋
Yes, companies sell delinquent accounts to collection agencies.
Let's say that Discover wants to sell Suzy Q. Consumer's deadbeat account. She owes them $2,000. Collection Agency 1 offers to buy Suzy's debt from Discover. At this point, Discover is not really concerned with making a bunch of money, they just want the loss off their books. After negotiating, the two companies agree that the debt will be sold for .20 on the dollar. CA1 buys the $2,000 debt for $400.
Now the fun begins! All the agents know the amount of the original debt, the amount CA1 paid for it and Suzy's information. Their goal, ultimately, is to make a profit for the company. They will try their hardest to get her to pay way more than the $400.
I always tell my clients - don't take bill collectors personally. It's just business!
2007-05-08 06:59:14 · answer #2 · answered by YSIC 7 · 0⤊ 0⤋
This is an important issue. Three points must be considered, especially if you are intelligent, or have interest
in improving your life.
1. It is illegal for many denominations of Christians to go
through collection property assessment(debts of states)
2. It is expensive when you have top legal advise for them
(collectors)to defame someone
3. Your future buying power does consist of reports designed
by expert people to aid you in improving eventually
The rule of property, holdings, conservation is to stay ahead
of the legal mix ups. Many crews that are around will use
small budget pressure to rule over your own opportunities.
The best point is to maintain a strong team position with a
good reputation for your viewpoints, and participate.
http://www.betterbusinessbureau.com
http://www.investors.com
2007-05-07 15:45:10 · answer #3 · answered by mtvtoni 6 · 0⤊ 0⤋
the sequence employer won't be able to yet their shopper (your creditor) can with the garnishment order from the court. First you will have had to receive some notification summoning you to court. dissimilar the time, they then deliver you a be conscious letting you be conscious of that they are "freezing" or "conserving" your money for a undeniable quantity of time and could withdraw the money on a undeniable date. except you have extra funds than they are conserving in the bills, each and every thing will bounce in this term. they're going to hold the full quantity you owe plus any expenditures, court expenses, and so on on any and all bills including your call on it (which incorporates joint bills including your substantial different, toddlers, moms and dads, regardless of) until eventually it's time to withdraw the money so in case you're fairly worrying approximately this taking place i could get those human beings's funds out of how now!
2016-10-15 01:31:45 · answer #4 · answered by rode 4 · 0⤊ 0⤋