The problem with those of us that have struggled to work on how to Improve Your Credit Score is that if we do not get around to actually doing what we need to do than we end up having to deal with collection agencies.? Collecting agencies are the companies which come to the rescue to the companies that are owed the debt and they are good at solving problems with debts as well as with difficult debtors for a certain percent of the debt.
Collectors are the specialists that are representing the interests exclusively only for the creditors,as much as they may say they are trying to help you out usually they are not it kind of reminds me when I watch Law&Order and the cops are always trying to tell the guy that they just busted .. hey we are just trying to help you out.? There are certain agencies and law firms which also work under the requests of creditors and render collector services, sometimes this is all attorneys do is collect since they are good at taking someone to court to sue them.
Branches of big cities are basically work with big clients and according to large debts (from 10 000 dollars and above), so this is when they bring out the big guns so if you are just dealing with little collection accounts like 100 or 50 bucks believe me they are not going to put much effort in you.? But that does not mean your credit will not suffer that $100 collection account will still have the same impact on your credit like that $1,000.oo collection account.? However some work also with such sums as 1000 -3000 dollars, but there really is not much of a profit margin when they go any lower since they know they may have to settle and pay a commission and some collection agencies buy your account for 30 cents on the dollar.
Collectors take certain percent – 10-30 % of the collected debt, as their commission. It depends on number of debtors and from term of indebtedness for certain amount. For package clients (for example, with short debts) ? 5 %, in a difficult situation when it is necessary to search for the debtor or its property it can constitute 50 %, but then again the balances are getting a bit bigger.
Collection agencies work as intermediaries, following the state legislation.
Collecting agencies render services at three stages:
1 pre-judicial adjustment;
3 executive production.
All these actions are produced on the basis of the agency contract and notarial certified letter of attorney.
Complaint work to court is led on the termination of the term of a debt that has been too difficult to collect within past two months. During this period collectors lead with debtors regular conversations by phone, send claims in letters, sometimes they send a message?. For the purpose they remind the debtor about their indebtedness and possible consequences in case of debt unpaid, namely about possibly proceeding with some court action.? All these phone calls that you may be getting should be only on the working days and in the afternoon – from? 8 o’clock in the morning to 9 o’clock in the evening.
Now you do have rights
Here are just brief outlines, if they call you at work you can tell them to stop calling you at work and if you have told them that this time is inconvenient and they have to call between 8 Am and 9pm YOUR TIME NOT THEIR TIME. ..For more information as to what rights you have as someone that is in a situation having to deal with collection agencies just go here. Just remember any time you are dealing with someone maintain your cool let them lose yours but do not lose yours.? So when you are talking with someone from a collection agency get THEIR NAME BEFORE ALL GOES TO HELL AND RECORD THE TIME AND DATE OF YOUR CONVERSATION.? Just in case you need it when filing a complaint.
If all these notices and little reminders don’t get the person that is in debt to act, that is when you have prepare yourself for the possibility of some kind proceeding coming soon. Legal procedure can last from 3 ? 4 months. Therefore collecting agencies take an obligatory advance payment (the sum depends on complexity of business and duration of legal procedure). It includes also expenses on services of lawyers and other court costs.? Now you really never want to get to this point and each state is different but if you owe a ton of money this is where it can get a little ugly.
After the court order is delivered and a judgment is granted then its on to enforce the judgmental.? The task is to find the debtor and its property, and also to force them to pay a debt, which is now more than what they may have started out with since there was court costs added on.
SO WHAT IS THE ALTERNATIVE?
Just an fyi, no one really wants to get to this point since it can be more of a pain for everyone and more work and more time and money lost.? Also if we start talking about big money than usually what happens is you force the debt into filing for bankruptcy and then no one gets anything and that is the last thing any collection agency wants to happen.? But then again once you file that is going on your record and following you around.? So one alternative is to settle and make arrangements to pay you may not have $10,000 to pay the whole debt off but most will settle at 30% of the balance just to get something and will even work out a payment scenario.
The importance of your score will become very apparent when you apply for a loan whether it be to buy a home or a car loan.? Even credit cards will charge someone double the amount of interest to someone with bad credit vs someone with good credit.?? If you want to have your dream home within reach and an affordable car loan best thing is to keep your credit score healthy.? If your score is not at its best then the best thing to do is to get your score up you just need to do the work and learn the systems. ??What ever system you use to help Improve your credit score, keep in mind it well require you to learn a few things and require work on your part but it is do able, and learning to Improve your credit score can be a reality for you if you are willing to learn and do some work.