Failure to pay back a borrowed amount of money from a creditor, the case may be handed over to a specialized company to help recover what you owe. This process is called debt recovery.
There are many debt recovery agents who are legally registered for this process. In many cases, big Loans and Credit companies operate their own debt recovery units. Often time, the debt recovery unit of the company is buffered with an attorney or a financial lawyer. This is to make the legal issues easier to knot together. In case your creditor is a small, medium, big, but has no debt recovery unit of its own, he may decide to trade-off your debt to a registered debt collector or debt recovery agency. This is a situation that you must try to avoid as much as possible because of its negative implications on your financial record and may lead to you being stigmatized as ‘lacking credit-worthiness’
This is damaging enough as it may hinder you to access a loan in other institutions in the future. If you are faced with the situation where your debt is sold to a third party debt collector, the situation may become more unpalatable. The new agency becomes your creditor who may issue you with new conditions and impose more stringent conditions. It pursues its debt with greater aggression. Intimidation and sometimes threats may become part of the game.
This is why you should borrow what you are sure you can easily pay back at the due time. For more information you can contact icash
Be proactive, be on your guard
When you are in debt to a financial institution, Loans and Credit Company, or any creditor whatsoever, you’re sure to receive a call time after the ‘due date’.
It is necessary to have the full information about the source of the call, name, telephone, and other vital information. Try to talk politely as much as possible. This will help you to access the true situation of things. Some creditors may be polite and understanding, while others may be far from being polite.
Ask the caller some insightful questions about the type of debt, the amount, and the creditor’s details. This is necessary to ascertain if truly all details about the debt are indeed correct and that you owe the organization. Otherwise, if you doubt the authenticity of the debt, you may proceed to raise a dispute query. But if all information is genuine and correct, then contact the creditor to discuss your position. Traditionally, a creditor will ensure he contact you first in writing as a reminder, thereafter this notification may be followed by calls.
Don’t be unduly intimidated
When indebted to any organization, it is necessary to know the limits and extent of a creditor’s actions. Search and know what rights do you enjoy under any debt condition, what is the position of law, do you have any right for a moratorium? If yes, what is the duration? These facts will guide you on how to manage your debt situation. See what is your right:
If indeed you confirm that you are indebted to the caller or the organization he represents, it is better to make urgent payment. The payment should be total. You need to understand that if your debt has been confined to a debt recovery agency, you need not pay to the original creditor. All payments should be made to the recovery agency. In case you could not make immediate payment in full or part, then you need to arrange a payment plan with your creditor or the contracted agent.