Consumer collections include collection actions involving a business and a consumer. Consumer collections tend to be extremely governed. Along with state laws controlling debt collection, consumer debt collection can also be susceptible to the conditions of the Federal government Fair Debt Collection Practices Act. The FDCPA is supposed to safeguard consumers against excessively aggressive or deceitful methods that could be utilized by an unethical collectors' towards an naive and unsophisticated consumer.
Another type of collection is commercial collection or business to business collection. Commercial collection relates to bad debts to be paid by way of one business to another. Business collection is much less controlled simply because it is assumed that many companies are sophisticated enough to comprehend their own rights when working with any creditor.
The tactics utilized by businesses engaging principally with commercial collections tend to be much different from those accustomed to collect consumer debts. For instance, because of the large volume of fairly small dollar amounts related to consumer debt collection, a written payment reminder or even dunning notice is a widely used and effective collection device. With commercial collections, the most effective way to demand payment is definitely by telephone. Written collection attempts usually are not likely to have speedy results.
Key point: The laws and regulations change in case a creditor is addressing a consumer (rather than a commercial) debt. The collector must have a comprehensive knowledge of the laws regulating consumer debt collection prior to actually picking up the phone.
Great post, I'll be keeping up with this.
ReplyDeleteI think debt is interesting, you always hear horror stories of rude calls and harassment. is this the same for a company? is the receptionist just terrified to answer the phone?
ReplyDeleteAwesome info. I'll keep reading
ReplyDeleteInteresting, I never knew about any of this before, thanks for posting
ReplyDeleteI learnt about this when my mom was in debt, awesome
ReplyDeleteInformative, and in lay man terms enough for me to understand. Thanks, those were some interesting tactics you posted.
ReplyDeleteVery good stuff, keep em coming!
ReplyDeleteThe FDCPA is supposed to protect people from deceitful or overly aggressive methods, but sometimes you hear of some pretty outrageous stories. Keep the info coming!
ReplyDeletevery good information
ReplyDeleteJust a tip: I'd spice up the blog post with some pictures, especially on a dry topic like debt recovery.
ReplyDeleteGood info here, but I'm not sure if everybody is reading it
you make a good point there man
ReplyDeleteUseful stuff here dude, thanks! Want more!
ReplyDeleteNice point of view man.
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ReplyDeleteSome people don't understand that debt is necessary in the global economy/society that we live in, everyone wants to be debt free but there is no way that's going to happen!
ReplyDeleteUgh the horror stories are true, got someone in my family going through crap right now.
ReplyDeletedang, but this is good info to learn however
ReplyDeleteGr8 info about Commercial debt recovery
ReplyDeleteReally good articles about Debt Collection
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