What does a creditor do, exactly?
(As opposed to what can they LEGALLY do.)
What is the worst thing that ever happened to a creditors "prey"?
And is it true they only get paid on commission?
2007-10-01 13:23:21 · 4 answers · asked by fantasie66 3 in Business & Finance ➔ Credit
Your creditor is whoever you received a loan from (for example, let's say you have a Chase credit card... Chase is your creditor). The creditor, gives you a loan in the hopes that you will pay it back on time, according to their terms.
Failure to pay them could send you to a collection agency.
A third party agency (say XYZ Systems) calls you on behalf of the creditor (Chase) to collect on that debt. They'll try to get you to make some sort of arrangement on it.
The agency in question receives a percentage commission on that debt (say a $1000 debt with Chase, the creditor will pay XYZ Systems 20% [example] to collect it on their behalf).
The agent working that file could receive commission on that, provided that agent meets certain quotas. Otherwise they're paid a salary or by the hour.
If an agent fails to reach quotas repeatedly, he could be terminated.
Hope this helps...
2007-10-01 13:44:10 · answer #1 · answered by Ryan S 4 · 1⤊ 1⤋
A creditor extends credit. A collection agent calls folks and asks them to pay on past due bills. The correct term for a creditor's prey is "Debtor." The worst thing that ever happened was a neighbor showed up at his door with a gun because a collector had called the neighbor to inquire about this and that but said neighbor's dog had been shot a long time ago by the debtor. Needless to say, the collector got him riled up and he headed next door with his gun.
They get hourly plus commission in most cases.
2007-10-02 09:16:23 · answer #2 · answered by Nicki W 2 · 0⤊ 0⤋
Some collection agencies collect debts for their customers, who are your original creditor. They get a percentage of what they collect from you.
Some collection agencies has bought the debt from your original creditor. They are called Junk Debt Buyers (JDBs).Sometimes they buy old debts for as low as 2 or 3 cents on the dollar. JDBs can collect the face amount of the debt plus fees and interest. But, they sometimes settle with debtors for a fraction of the face amount of the debt.
The worst thing that can happen to a debtor is that he is taken to civil court and sued. If the original creditor or the JDB wins the suit, they can garnish the debtors' wages, put liens on his assets, and seize his bank accounts.
A debt is a civil matter. A collection agency cannot threaten to have you arrested although some unscrupulous ones sometimes will do that to scare you into paying.
2007-10-01 20:41:58 · answer #3 · answered by Ti 7 · 0⤊ 1⤋
collect on debt and some get commission
2007-10-01 20:30:17 · answer #4 · answered by Michael M 7 · 0⤊ 1⤋