Understanding Collection Agencies is quite simple. Typically, a collection agency is contacted to take care of outstanding debt that is past due. A collection agency has access to software and know the laws of collection. Collection Agencies are considered a third party. Companies with the past due debts turn it over to the “Collection” Agency and they contact the debtor direct.
Once a client is delinquent the process of the collection begins. They hand over all the information and it is up to the collection agency to contact them. If an arrangement of repayment cannot be agreed upon the debtor will be reported to the credit bureau. This can leave a big ding on their credit history.
Agencies take payments and then pay the original company minus their fees. Generally, the debtor is less than 6 months past due. They collect for companies such as medical, credit card, utilities, phone, and mortgages.
Collection agencies must abide by the laws of their state and are bound by the Fair Debt Collections Act (FDCPA).
One of those is they can only contact people between the hours of 8 a.m. and 9 p.m. They can only contact their employer about past due to student loans, taxes, child support, and alimony. They can stop the calls to employers just by stating the employer does not allow phone calls during work hours.
If a company does their own collection in house they do not have to abide by the FDCPA regulations. However, they may cross the laws of collection by not staying up on the regulations of collection.
A reputable collection agency with an A+ rating will not ask for funds up front to collect your unpaid invoices. They will take only a portion of what they collect.
MCA is a third party debt collection agency that has been in constant business since 1950. We are rated A+ with the Better Business Bureau and we pride ourselves on excellent customer service along with delivering great recovery rates. There is no cost to you unless we collect! Why not try and re-coop some of your past due accounts with no out of pocket expense?