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Posts Tagged ‘collection agency’

How To Get Back Up From A Bankruptcy

March 25th, 2018 Comments off

Bankruptcies can hang on your credit report for up to 10 years and can butcher your credit score by hundreds of points. But by using these tactics, you could improve your credit score and become creditworthy several years before the bankruptcy drops off your credit report.

Patching up your credit score after a bankruptcy is far from being easy. “Filing bankruptcy is supposed to be a fresh start,” says Stephen Snyder, credit expert and author of “Credit after Bankruptcy.”

After a bankruptcy discharge, make sure your credit report is correct. After all, your goal is to increase your credit score hastily, and inaccurate information will only draw out the time it takes to score high enough for conventional credit. You are entitled to one free credit report every 12 months from each of the three national credit bureaus. Credit bureaus generally have 30 to 45 days to investigate your claim.

One of the most efficient ways to boost your credit score after bankruptcy is to acquire a secured credit card, she says. Secured cards are credit cards secured by a deposit account (usually a savings account) owned by the cardholder.”Those cards were designed for people with bad credit to remain in very low-credit-limit situations for a long period of time at a high interest rate,” says Stephen Snyder, author of “Credit after Bankruptcy.”Having more than one type of credit line will help boost your credit score.

“The point is most people with great credit scores probably have two credit cards from well-known, well-respected banks, a house payment, maybe a boat payment, and they keep those balances below 15 percent [of available credit] every month.”About 10 percent of your credit score is calculated based on the types of credit you use (i.e., credit cards, mortgages, installment loans and retail accounts), according to MyFICO.com.

Another 10 percent is based on new credit accounts ” which can include credit lines established after your bankruptcy. Although the FHA program does not officially use credit scores to qualify a loan, individual lenders may. Some credit-repair and credit “doctor” companies make grandiose claims that they can clean the slate and repair your credit file, often for a substantial fee. Only time will cause those entries to drop off your credit reports.

Jonathan Summers is working for a New York Collection Agency and is working to help with your Business Debt Collection needs.

First Party Collections Information Important To Your Business’ Cash Flow

November 26th, 2017 Comments off

The term first party collections refers to any collections that are performed by the company to whom the debt is owed. You may not have realized it, but any time you call a client and ask them to pay up on a bill or send a reminder notice, you’re doing first party collections. Some large companies go as far as to open their own collection agency as a subsidiary to handle this.

“First party” literally means that you were the first party in the original exchange of goods or services for money, i.e. the lender. The person who accepted the goods or services and promised to pay, i.e. the debtor, is the “second party.” If an outside collection agency becomes involved, they were not part of the original transaction, which is why they’re called “third party.”

First party collections activity has some unique advantages. For one thing, there is no lag in time between an account becoming delinquent and the beginning of the collections process. Also, you have knowledge of your customers’ needs and practices, making it easy to maintain a positive relationship even after debt is incurred, which helps down the road if you want to keep the customer as a client.

Often the debtor will be more inclined to try to please their original creditor, especially if you have a product or service that he or she needs in order to maintain their business. Sometimes a gentle reminder that you won’t ship any more items until their past due amount is cleared up is enough to get recalcitrant debtors to pay.

Another difference is that unlike third party agencies, first party collections do not fall under the Fair Debt Collection Practices Act. When you are the original party or a legal affiliate of it like a subsidiary, you are considered a lender rather than a collector. Third party agencies therefore do not have as much wiggle room in their practices as first party collections entities due, but the latter are still subject to state and federal law.

Once a bill gets past due beyond 2-3 months, though, it’s usually time to turn it over to a third party agency or sell the debt. The ability to collect on past due amounts drops steeply after this time statistically, so rather than continuing collections actions in vain, you’re better off handing them over to professionals with more resources.

In addition, first party collections aren’t very effective unless you have a specialized collections staff. Your sales force, accounting staff or management are not trained collections people and their time is better spent elsewhere while you save collections endeavors for people who know how to perform them.

If you hire an individual or create a department to handle first party collections, however, they can be just as successful as third party collections. If they are knowledgeable in modern collection techniques like private investigation to track down new addresses and phone numbers, offering incentives to get the debtor to call in or working out settlements, first party efforts can be remarkably efficient. When trying to make the decision of which type of collections instruments to use, keep in mind whether you’re spreading your resources too thin or if you have the team in place to do first party collections.

David P. Montana has written extensively and served as a business advisor in collection agency services for three decades. David provides additional helpful tools and resources about outsource billing service options.

Mutual Funds 101 Part One

March 2nd, 2014 Comments off

Are you a beginner when it comes to the stock market? No problem! This series of articles on mutual funds will make it easy for you to understand what a mutual fund is, what it is all about and whether it is worth your while to invest in one. My first three articles are called “Mutual Funds For Beginners” and they lay down the basics.

The next one is called “Expenses Associated With Mutual Funds” and it covers the basic things you can expect to be charged for if you decide to invest in a mutual fund. The last two are called “Is Investing in a mutual fund worth your while?” and they cover the pros and cons of mutual funds. First let’s break things down to a molecular level and talk about securities. The fancy definition of a security is a negotiable instrument representing financial value.

This definition is kind of hard to grasp so let us take a look at an example of a security to help you get a better idea of what one is. A stock is considered a security. Stocks can be purchased or sold, and therefore have financial value, and a share of stock literally means that as a stockholder you “share” a fraction of ownership in the company whose stock you own. Bonds, which are contracts to pay back money with interest on specified dates, are also securities. If you hold a bond, you know that you are going to receive money on these set dates, so bonds have financial value as well.

Stocks are purchased and sold at exchanges called stock markets, and bonds at bonds markets. A bonds market is generally quite different from a stock market. If you were trying to invest in stock, or sell the stock you have, you would enlist the help of a stock broker who would charge you a commission for performing this work for you.

Typically, unless you own stock from the company you would like to buy from already, you are going to want some sort of a broker to help you do this. The same goes for bonds – you are going to want a dealer. Now that we have the very basics down, let’s go over mutual funds. See my article “Mutual Funds For Beginners Part Two!

Important Things To Consider When Hiring A Collection Agency

December 15th, 2013 Comments off

Many people who own a business have been in the unpleasant situation where they provided excellent service to a customer and did not receive payment. They can attempt to collect the debt using their own resources but sometimes that proves to be simply impossible. Hiring a collection agency is the most proficient way to handle this type of issue without interrupting the normal operations of the business.

Sometimes a business owner wants to give their customer the benefit of the doubt, so they wait awhile before sending an account to collections. The truth is, the more time goes by, the less likely it is that the debt will ever be recovered. Most companies choose to work with a collection agency when a bill is ninety or one hundred and twenty days overdue. Just be aware that the older the bill gets, the more an agency may charge to recover it since it will be far more difficult.

A red flag should go up for a company when their client defaults on several payments and seems to move around frequently. These people are referred to as skippers and they make a habit out of moving away and not notifying their creditors to try to get out of paying. These debts are sometimes never paid, but a collection agency has access to skip tracking methods that can track them down.

When a company hires a collection agency, it becomes much easier for them to run their everyday operations. Rather than spending precious time trying to contact debtors, businesses can focus their attention on the services they provide to their paying customers. They can rest easy knowing that things are being taken care of by trained professionals.

The first question that any company should ask a collection agency before establishing a relationship is how they expect to be paid. Usually, their rate is based on a percentage of the debts they collect. Try to find a company that only gets paid if they are able to collect and does not expect any money before they begin working.

Hiring a collection agency is the easiest way to solve debtor problems without taking time away from important business matters. Business owners can devote all the attention to their company that it needs because they know someone is handling their delinquent accounts. This is the most efficient way to go for a company that has no time to waste.

Want to find out more about hiring a collection agency, then visit Sid Burnstein’s site on how to choose the best california collection agency for your needs.

Some Fun Tactics To Use To Encourage A Collection Agency To Stop Calling You

September 14th, 2013 Comments off

Everyone knows what a collection agency is – and does. A few people have even developed an aversion to picking up the phone – especially after one too many verbal onslaughts from a bill collector with a nasty attitude. A person is already aware of the embarrassment a financial bind causes them, with the added daily trials of humiliation and threats delivered by phone.

Wouldn’t it be fun to deliver a little pay back – so the world’s collection agencies get a little taste of the pie they’ve dished out to others over the years? Well, in the interest of keeping the playing field leveled – and to have a laugh – here’s a few ideas to put into play, that might balance the scales a bit if you’re ever stuck in a predicament where you’re phone has become the enemy:

Deny, Deny, Deny – It’s relatively easy to tell when you’ve got a “collector” on the phone. In addition to the strange “800” number showing up, the call often begins with a recording that asks the listener to either confirm – or deny – that they’ve got the right person. If he is the incorrect party, he’s supposed to hang up the phone – end of story. Well, you can always choose to go this route – but although this will delay having to talk to them, it won’t stop them from tying up your phone to try to catch you in the lie.

Now, you can choose to just hang up, but this is rarely the end of their calls – as so many debtors try this, thinking the bill collector will just “go away”. It’s more fun to try and scare them, and pay them back with a taste of their own medicine. What you do is wait for the recorded voice to ask its questions – and state “yes”. Then, as soon as you hear the agent click over onto the line, start screaming as loud as you can, “NO! For the millionth time, I am NOT this person. You are making the voices mad. I’m telling you now to STOP CALLING!” and hang up. Make sure you answer every time you see it’s them, and scream a various theme of your “denial message” each time – like you’re indeed, crazy. The bill collector may not stop trying to collect, but he may settle for sending you his threats in the mail in the future.

Just “visiting” – Pretend to be a visitor in your country – someone who doesn’t speak the language, or ANY language for that matter. Speak gibberish, mumbling incoherently. And, if you pick up the phone and answer as “you” – don’t worry. Just put them on hold and tell them you’re getting the person they want, right away. Give it a few moments to keep them hanging. When you finally come back, make sure you’re in character for the rest of the call. Be hard to understand and repeat everything they say in a heavy accent. From time to time, throw out a word or two – like “yes” or “sure” – just to make them think they might be getting somewhere in making you understand the nature of the call, then start mumbling nonsense again. You’ll find you’re suddenly as big a headache to them, as they’ve been to you.

Play “lonely” – A surefire way to get those collection calls to stop is to demand attention from your caller. That’s right. Act needy and starved for human attention. Start off by exclaiming how good it is to hear any human voice – then follow-up with the hour-long sad story of your contagious limb deformity that’s prevented you from working and paying your bills – as naturally, you scare off job interviewers the moment they see you. Be sure to keep the person on the phone, redirecting the subject at hand, back to you and your woes. Keep bugging them to call you later, or ask for their home address – so you can visit them in person. This tactic will probably cause the representative to “lose” your name and phone number – at least until someone else at the agency has to take over.

Hopefully, you got a laugh over some of the creative – but harmless ways – you can turn the tables on a collection agency that won’t leave you alone. If you ever find yourself in this situation, but still can’t bring yourself to do something like this, just imagining how they’d be caught off guard, might be enough to lighten your load anyway.

Learn more about collection agency. Stop by Burnstein and Burnstein’s site where you can find out all about commercial collection agencies and what they can do for you.