When incassobureau inschakelen goes into collections, it can have a serious negative impact on your credit. The best way to minimize damage is to pay the debt as agreed upon with the collector. During your first contact with the DCA, be sure to get a written agreement that includes payment information and updates to your credit reports. This is important for tracking your progress, and it will help you dispute credit reporting errors if they occur.
Debt collection agencies (DCAs) collect delinquent debt on behalf of creditors, who are the businesses that extend credit or loans with expectation of repayment. Creditors usually give their own debt collection efforts a good shot before hiring a DCA to pursue unpaid debt, but it’s not unusual for accounts to go into collections after trying to collect for 180 days.
Protecting Your Bottom Line: The Importance of Hiring a Debt Collection Agency
Most DCAs work on commission, meaning they receive a percentage of the amount they collect for their client. This arrangement is common in the debt collection industry and accounted for about half of the collection agency industry’s revenue in 2014.
A debt buyer, on the other hand, doesn’t work for a creditor; instead, they purchase old debt from creditors at pennies on the dollar, so they stand to make big profits if their debts are collected. These are known as “zombie debts.”
Regardless of who you’re dealing with, a reputable collector should follow the Fair Debt Collection Practices Act and be honest about who they work for. They should not harass you, including threatening to arrest you or using profanity, and they can’t publicly share your debt information or contact other people about it unless you consented to them doing so or if it’s related to a healthcare claim.