As many Americans do, are you facing difficulties while managing your debt? Then you might ask, “
What is the exact debt recovery process?”. So you should know about the work of the debt recovery agencies to get the answer to the above question.
According to a report from 2022, around 35% of adults in the U.S. are dealing with various forms of debt. If you are also among them, you may often search for the best debt recovery agencies to eliminate overwhelming and complicated financial situations.
In this article, let’s find the complete solution to such challenges and explore the best debt recovery agency in the U.S. together.
What is the Debt Recovery Process?
The term “Debt Recovery Process” indicates the procedure by which a creditor recovers a debt from a debtor. Simply put, the creditor tries to collect money that is owed to them by debtors.
Sometimes, debtors fail to pay back a debt, such as a medical bill, a credit card bill, loan payment, etc. In this case, the creditor follows the debt recovery process to get back the money.
At the beginning of the process, the creditor sends a letter informing the debtor about the overdue payment and requesting they pay it back as quickly as possible. This step gives your debtors a chance to check for errors and pay what they owe.
If your debtor still fails to pay you back, you can send more letters and call them frequently to persuade them. After several unsuccessful attempts, you must hand over the debt issue to a collection agency.
Once you hand over the case, the agency will contact your debtors through letters and calls. However, the letters sent from the collection agency give the debtor a final request for payment within a specific date.
What if the debtor still doesn’t pay back your debt? In this case, your hired collection agency will recommend you take legal actions like suing the debtor or wage garnishment.
If you agree to file a lawsuit against the debtor, you must wait for the debtor to respond. A trial date will be given once both parties file for legal action.
And if your debtor doesn’t cooperate with the legal notice, your attorney can file a default judgment. It means you’ll eventually get a legal solution from the court and get your loan back.
What is the Work of a Debt Recovery Agent?
The debt recovery agent is a third party who gets involved in the process to make things easier for the creditor. You, as a creditor, may find it tricky to persuade the creditor to contact a professional attorney.
When the creditor company hires a debt recovery agent, the agent demands essential information. You may need to provide an official loan agreement paper, repayment obligation, and the deadline for the loan payment.
After that, the agent will start the bookkeeping, documenting, and reporting process. The agent can send your debtors calls, emails, and letters containing a new deadline to pay the debt.
However, the debt recovery agency doesn’t have the authority to meet the debtor in person. The agent can also negotiate settlements between the creditor and the debtor for a reduced amount of the total loan. They can recommend legal measures if they fail to get the loan back.
Again, some debt recovery agents work in different methods. For example, the agency will officially purchase delinquent debt from the creditor. If they can recover any amount from the delinquent debt, they will legally keep it.
Do I have to Pay My Debt to a Collection Agency?
Whenever your debt has been handed over to a collection agency, it does not mean you are not responsible for paying it. You need to understand factors such as negotiation, dispute charges, and debtor rights.
Different collection agencies will provide you with an effective payment plan. You can find an appropriate repayment plan with a settled and reduced amount. If you face any unfair treatment during the collection process, the Fair Debt Collection Practices Act will protect you against abusive means.
Best Debt Recovery Agencies in the U.S
You can find a complete solution from various renowned agencies for debt recovery. A relevant list of some of the best agencies are as follows:
- Eastpoint Recovery Group: It is known for its ethical, professional, and practical approaches to consumers in recovering debt.
- CBE Group: This group has an excellent reputation in consumer debt recovery. They provide solid and effective customer relationships.
- Midland Credit Management: This provides more flexible and effective repayment plans with absolute settlements. It is also renowned for fantastic client relationships.
Final Words
It’s rare not to have the question of the debt recovery process despite dealing with overdue payments. When you are managing debt, this is one of the common factors that comes to mind at first instance.
As an American, dealing with debt can be challenging, and various agencies will help you find a more straightforward solution. This article will help you find the best debt recovery agency in the U.S., and you can have a more flexible financial future with the intense concept of recovery procedures.