So, as you can imagine, many lawsuits spring up due to complications and confusions regarding debt collectors and the rules they must abide by: are they in house, or third party? Last article I brought up three examples, one being the Department of Education collecting on student loans. Anybody who works directly for the Department of Ed does not have to follow the FDCPA, while the seventeen private third party collection companies that it works with are. I wrote about a law suit in which a hospital mailed out pre-collection notices to patients with medical debts. If the hospital was ruled a third party collector, everyone who received that notice would have been absolved of their debt. In this case the hospital was ruled a creditor instead.

Finally, I brought up a personal situation I encountered with an in house debt collector that is kind of silly and ridiculous but pertinent nonetheless. I am notorious for taking out books from my local library and never giving them back, so last summer it got to the point that they sent a collection agent after me! The collection agent called my third party house phone and left a message for everybody to hear about the intimate details of my “delinquent account,” and ask that either I return the books or pay the library for the cost of them. Fortunately for them, I love my library and was also aware of the fact that the collector was an in house, because she requested that I pay the creditor (the library) directly. I gave the books back, but let it be known that if I did not manage my finances as well as I do now, and had been called by a rude third party debt collector who did the same thing; there would have been hell to pay.

To determine if they are work with third party debt collectors or in house collectors in court cases, the courts will take a lot of ideas into consideration to rule if the FDCPA applies or not. If the creditor hired a collection agency outside of its company, the agency’s participation in the actual debt collection process must be minuscule. Questions the court will ask include: is the collection agency only a mailing service? Do they letters say if the debtor does not pay the debt will be referred for collection? (Third party collection agencies send out different letters, in house collectors send out these “warning” letters.) Is the collection agency only paid for sending letters?

If the collection agency is paid on commission, it is most likely a third party collection company. Again, if the agency receives the payments and then forwards payments to the creditor itself, it is most likely a third party collection agency. If a debtor does not respond to the letter and the collection agency has no further contact with the debtor, or if it does not get a hold of the files on the debtors, it is most likely not a third party collection agency. The lesson to be learned here is that when it comes to personal finance, it is important to know who you are giving your money to. A simple question as to whether you are speaking with a third party debt collector or an in house collector can guide the conversation because you will know their limits, like in the case of me and the library, or all of those people in the hospital that might have gotten away with not paying their medical bills.

Mallory Megan works for Rapid Recovery Solution and writes articles on national collection agencies Unique version for reprint here: The Difference Between Third Party And In House Debt Collectors And Why It Pays To Know Who You’re Paying Part Two.

While it may not be the best idea, according to the Fair Debt Collection Practices Act, a debtor can notify a debt collector in writing telling them that they want to cease further communication and the debt collector must comply. The collection agent is generally allowed one more contact to inform the debtor how they intend to proceed with their case. While ceasing communication with debt collectors might seem relieving, it is essentially relinquishing control over your financial situation, and a debt collector is still fully capable of negatively marking your credit score or taking you to court.

The request to cease communication must be written, preferably citing the FDCPA and sent by Certified Mail, Return Receipt Requested. If a creditor was not sure about whether or not to file a lawsuit against the debtor, the decision will generally be made right after this point, instead of being decided later.

Again, just because the collection agent can no longer contact you anymore does not make the debt go away. After a consumer has sent a “cease and desist” notice to their debt collector, their debt will either be returned to the original creditor, passed on to another third party agency, or in rare instances, filed away simply as uncollected, all depending on the circumstances.

Try to remember however, when the debt collector calls, they often have the authority to offer you a repayment plan or a reduced amount to pay, which will absolve you of your debt so you do not have to worry about it anymore, and it will easier for you to pay. Even though they get a lot of bad press, most collection agents are for the most part personable and more than happy to work with you if you want to work out some sort of payment. It’s a win-win situation for both parties: your debt has been paid and the collector gets a nice commission check for the week to bring home.

Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies This article, What If I Want A Collection Company To Stop Calling Me? has free reprint rights.

By using a collection agency to retrieve any overdue debts promptly and professionally, you could easily observe your cash flow improve far beyond the amount of just cutting down a few expenses. The money that is left unpaid by customers or clients is cash you could be using to sustain your business further.

No doubt you would already have been sending out reminder notices. When these don’t work and those bills remain unpaid its time to call in the debt recovery agencies to get your money back where it belongs.

If you’re trying to cut costs in your small business to try and improve cash flow, then chances are you haven’t even thought about using third party debt collections. After all, if you’re trying to cut costs do you really need another expense? The problem with many small business owners is that they have their thinking is turned the wrong way around.

By hiring a collection agency to recover any unpaid debts quickly and professionally, you could easily find your cash flow improves far beyond the amount of just cutting back a few expenses. The money that is left unpaid by customers or clients is cash you could be using to sustain your business further.

Beyond any doubt you’d already have been sending off reminder notifications. When this does not work out and those bills remain unpaid its time to call in the debt recovery agencies to get your money back where it belongs.

Mallory Megan works for Rapid Recovery Solutionand writes articles on new york collection agencies.

Yet carrying through on their job to collect that debt is proving to be harder for debt collection agencies than it ever was before. Either people simply do not have the money to pay back their debt, or the money they do have is to cover their bare essentials: food, shelter, and a car. The local creditor isn’t going to come in and take the average debtor’s house, so creditors are being placed on the back burners for now.

Management in the collection industry needs to bear three issues that I discuss in this three part series in mind. The first issue is to network, stay “teched up” and always look for ways to improve the current debt collection team. The second issue is to improve the relationships that they have with their debtors, and the third issue is that management needs to remember to be nice to their star employees.

In the business environment, connections are crucial, and isn’t the internet just one World Wide Web of potential connections? Get online and do that networking. Talk to other collection companies, creditors that you might potentially do business with, and while you are on that computer, always watch out for the next big trend in collections. Some debt collection agencies are considering texting debtors to let them know that their account is being sent to collections.

In my humble opinion (and hey, what do I know? I just get paid to write about this for hours a week) the collections industry should lobby to get the Fair Debt Collection Practices Act updated. The thing was written in the 1970s, is outdated and obviously doesn’t account for cell phones. A lot of debt collection agencies realize that younger people would rather make payments online and have set up systems to do just that, which is a good idea. Since the economy has gotten so rotten, older people have gone in to debt as well, and accommodations should be made for them too, making it easier for them to pay. If you want a debtor to pay, make it easier for them to do so. It’s as easy as that. To Be Continued In Parts Two And Three

Mallory Megan works for http://www.rapidrecoverysolution.com and writes articles on medical collection agencies This article, 3 Ideas Management In The Collections Industry Should Remember To Maximize Profit Part One is available for free reprint.

Any manager going through the hiring process is aware of the time and aggravation that comes with finding the right fit for the job, especially a job like a debt collector where attention to detail and motivation are a necessity. In the collections industry, it is crucial that you hire the correct person. A collection agent who is too laid back is not going to collect; one who is too high strung might end up getting your agency sued. Hiring the wrong candidate not only leads to an unhappy new hire with the capacity to harm the credibility of the hiring manager and even the company, but it also chews up management time that it takes to train. Time and money that could have been put into training the right hire in the first place.

So how should a hiring manager go about conducting interviews to find the best fit? Interviewing styles will vary from business to business. Generally, a number of interviews will involve asking about a candidate’s job history. But if a candidate has an idea of what you are looking for, and they are good at selling you their experience, you may wind up hiring the person who is not best suited for the specific job you have in mind. Thus, the most crucial idea that any potential employer should keep in mind during an interview is to get the candidate to be extremely specific. Studies have shown that it is more effective to go over less material very thoroughly than to have a general sense of everywhere that the candidate has been. It is important not to simply accept their first answer as complete- probe for more details.

In the collection industry, behavioral questions have been proven to be helpful. These are based on the idea that past actions may predict behavior in the future. When it is important that you need to be able to reasonably predict how a new hire will react to any sort of stimulus on the job because the credibility of your agency is at stake, questions such as “give me an example of,” or “what are your best and worst personality traits” can be helpful. Ask the candidate how they generally handle stress. You and I know they are going to be dealing with it after all.

Finally, look for new hires who feel passion about the things that they do. Try to look under the surface to determine if there is an authentic depth underneath what the candidate is claiming at the interview. Attempt to question the candidate about life goals, hobbies, spare time, etc. It might be unorthodox, but searching beyond qualifications can help you get a hold of some of the details that will give you an idea of how a candidate will approach a job and what their work habits are like.

Mallory Megan works for Rapid Recovery Solution and writes articles on new york collection agencies This article, How To Conduct Your Job Interview To Find The Perfect New Hire has free reprint rights.

This is a twenty one percent increase in land from statistics in data that was collected in 2008, and a one hundred and twenty percent increase in total properties from 2007. Additionally the report indicated that one in forty five housing units, 2.21 percent, got at least one foreclosure filing in the year of 2009, up from 2008′s 1.48 percent and 2007′s 1.03 percent.

Just in the month December, foreclosure filings were reported on 349,519 properties in December. That’s a fourteen percent jump from the previous month of November and a fifteen percent increase from 2008. Nevertheless, even though there was an increase in December, foreclosure activity in the fourth quarter of 2008 has decreased by seven percent.

Of all of the states in America, Nevada took the nation’s highest state foreclosure rate; more than ten percent of housing units received at least one foreclosure filing in 2009. This is Nevada’s third consecutive year at the top of the foreclosure list. Nevada’s foreclosure activity in the month of December increased twenty seven percent from the previous month, however it still was down by twenty two percent from December of 08.

Arizona claimed the country’s second highest state foreclosure rate in 2009 with even more than six percent of properties that received at least one foreclosure filing during 2009, and Florida was the country’s third highest foreclosure rate at 5.93 percent of its properties getting at least one foreclosure during the filing year.

This raises things to think about in the debt collection industry. Trends that have recently been noted that debtors are maxing out their credit debt and low balling their assets to receive lower payment plans. The fact that they are maxing out their credit cards to receive lower payment plans does not look promising.

Mallory McGuinness is employed by a debt collection agency. She also composes articles on business, finance, consumer spending and collection agencies. Also published at Foreclosures On The Increase.

Late Payments? Seven Years. A couple of creditors just might show mercy and will erase past credit problems if you settle your account immediately. Unfortunately, a late payment can happen whether your account is thirty days past due, all the way to 150 past due. Seven years from the first day the delinquency was reported will be the day that the information is removed from your credit report. Fortunately, these negative marks are most common and have the least effect on your credit score.

Tax Liens mean seven years of bad credit. A tax lien usually occurs when the local state or federal government claims ownership of your stuff because you haven’t paid your property or income taxes when they were due. No matter how fast you pay them, big brother is mad that you made him go out of his way to seize your property. Seven years.

If you have a tax lien against you that you continue to default on, it can remain on your credit report for 15 years. The chances of your being able to keep any money from Uncle Sam are slim to none, so might as well pay up now if you are in this position.

Foreclosures are always bad news and they will stay on your credit report for seven years. Considerably one of the most severe negative accounts you can have on your credit report, if you have a foreclosure on your record, your chances of owning another home are shot unless you plan to pay for it entirely in cash.

Defaulting on student loans is never a good idea! Although before the administration of George W. student loans were typically forgiven if they were declared during a bankruptcy hearing, times have changed so it’s mandatory to take these things seriously. Defaulting on a student loan happens after 270 days of nonpayment. And before the loan is defaulted, you can be sure you will receive a number of late payment fees.

The big one is bankruptcy. Bankruptcy will stay on your report for ten years, and rather than give a creditor your report, you might as well say “I am fiscally irresponsible and will be so for the next ten years.” So you might end up living with that nosy mother in law mentioned in article 1 after all if you do not keep track of your finances.

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As house prices diminish and with interest-only mortgages on the decline, more homeowners actually owe more on their mortgages than what their house is worth. It doubtlessly has occurred to many homeowners that this makes sense, as many are defaulting on mortgage payments as we speak.

Here’s a quick breakdown to explain the situation. You buy a house for $400,000 that is now worth only $300,000. Thanks to an interest-only mortgage, you still are in arrears for $400,000. If you eliminated this off of your balance sheet, your net worth will increase by $100,000. You’d still need a place to live, but from this point you could purchase a more affordable house or rent for a bit of time.

There is one giant drawback to abandoning your house. If you do, you will annihilate your credit rating, making it difficult or even impossible to rent an apartment, get a new mortgage, and even a job. There is a major drawback to abandoning your responsibilities. If you walk away, you will trash your credit rating, making it harder or impossible to rent an apartment, qualify for a new mortgage, and perhaps get a job.

New laws are out now to assist families facing foreclosure, which will encourage people to pick options other than abandonment.

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There are a few things that companies should look for when making a choice for the right Business Collection agency. These include:

Price. Not all Collection companies will charge the same rate or the same way. Almost all Collection agencies do, however, set their rates based on a percentage of the total amount of the monies to be collected. For example, a collection agency may charge ten percent of the total collection amount to the business that hires it. Some collection agencies also charge only once funds have been collected, while other collection agencies charge an upfront fee for their services.

Reliability. Not all Collection agencies are clones of each other when it comes to reliability and effectiveness. One of the preferred ways to conclude how dependable a Collection agency is likely to be is to complete a simple background check on the agency through the world wide web or search with the Better Business Bureau. Also, many Collection agencies will offer references or have a list of clients that they have provided services for that new clients may check before hiring the agency.

Contracts. Some Collection firms offer contract work or retainers for their clients. In such a case, the agency may work a set number of hours each month for a set fee. Businesses need to be sure that they require a Collection agency’s services before they sign a long-term contract or retainer contract so that they can be sure that they get what they pay for.

Methods. It is important to ensure that a Collection agency is able to use a variety of methods when contacting non-payees. For example, Collection agencies should not only be able to approach a non-payee diplomatically through letter writing and phone calls, but the Collection agency should also be able to use legal courses of action, if necessary. May Collection agencies are part of law firms, which enables them to file legal cases easily and quickly, if necessary.

Mallory McGuinness works for a collections agency that works with a debt collection lawyer. She also does stories on business, finance, the credit industry and collections agencies.

Capital One offered to give consumers one dollar of new credit if they agreed to transfer the whole balance of a charged off account to the new credit card. This meant that Capital One could re-age debts to get around the statute of limitations, which would start anew.

According to the lawsuit, Capital One issued cards with limits as low as 200 dollars for low-income consumers with credit histories that were poor. The cards carried membership fees of up to 59 dollars per year. Usually, the annual fees were billed on the consumer’s second monthly statement, leaving the consumer with just 141 dollars of credit when they thought they had 200 dollars. Then, if the consumer mistakenly exceeded the limit, they could face over the limit fees of up to 29 dollars.

In the past few months, McGraw’s office has targeted debt collection agencies in part of an effort to protect West Virginia’s debtors. In November his office took two payday lending firms and four collection agencies to court.

As members of the debt collection industry, we often scratch our heads and wonder why, in a suffering economy where debt is running rampant, we cannot retrieve the money that consumers owe. Experts allege that with unemployment rates running so high, it is impossible for consumers to repay their debts. But bad business practices are not going to help the situation either. It may be a knee jerk reaction to try to con consumers out of money, but it is just that. A knee jerk reaction.

Mallory Megan works for a debt collection company. She also writes storieson bankruptcy, business, finance, and debt collection. Get a totally unique version of this article from our article submission service