What Does it Mean to be in Collection
What Does it Mean to be in Collection? You may find it helpful to know how debt collections work.
What is a debt collection you ask?
A debt that is not been paid can be sent to a 3rd party called a collection agency. Those agencies collect for the original company after you have typically missed several payments. Those companies typically only get paid if the debt is paid. They usually will give you different ways to take care of the debt.
When the collection agency works with you to pay your debt, they will contact you via phone, email, and letters. In the end, they report to the credit bureaus.
They will call you at work if they have your work number, they can show up at your residence and that is legal. They can call your cell if you have given it to the creditor.
Collection agencies are bound by specific calling hours between 8 a.m. and 9 p.m. They can call several times a day especially if you are not taking their call.
They cannot harass you.
When a debt collector has a hard time reaching you, they may call your friends or neighbors to make sure they have the correct contact information for you. They’re allowed to do this, but they’re not allowed to reveal that they’re collecting a debt and they can’t contact the same person more than once. They also may attempt calling your references or friends to contact you.
All collection agents are required to follow the FDCPA (Fair Debt Collection Practices Act. Not all collection agencies are equal. Some follow these rules while others do not.
How Collections Will Affect Your Credit Report:
Your report has all the information about all your credit accounts, loans, etc. They are all shared with the credit bureaus. Going to collections is never a good thing regarding your credit report. They will, in fact, share how you took care of payment and how quickly.
What Does It Mean for Your Credit?
Debt collection is one of the worst types of credit reported to the bureau. If any time you can avoid going to collection, you will want to. Your credit score will drop the longer it remains unpaid. It can stay on your credit for up to seven years. If you have bad debt on your report and it is not accurate you can have it removed by disputing it with the credit bureau.
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?