Wednesday, 27 December 2017
When you are at that point when you cannot pay your bills for one reason or another, chances are you may see debt collectors visiting you soon. Be sure they will use all the means possible to get you to pay the debts because for most of them their pay will depend on whether they will recover the debts or not. Singapore does not have a well stipulated legal system on debt collection procedures. As such, it is essential to understand what to expect when debt collectors knock on your door so that they don't take advantage of the fact that you don't know your rights and the procedure for recovering that debt.
The following is the procedure debt collecting agencies should follow in Singapore when recovering debts.
The first step in recovering any debt in Singapore is to try and settle the matter amicably between the parties involved. The agency will try to identify the details of the defaulter to know their whereabouts. These details will include their full name and address. A representative of the body will then visit the debtor to try and settle the matter on friendly terms. In case that fails, they will then inform the debtor about the collection by sending them a letter of demand. The letter states the need for settling payment to within three days from the day of writing the letter. They will also follow that up with a phone call to give the details of the debt and need to pay it in time to avoid legal action. When the defaulter does not respond, the agency will consider using the legal way.
Before filing a suit, however, the agency must carry out a background check on the debtor's assets and activities; if it is a company, its operations get verified with the Singapore Companies Register. It is also essential to check the financial condition of the debtor as bankruptcy can stop debt recovering process. After following all these procedures without any payment, the collection process will move to the court stage.
An attorney from the agency will then file a suit against the debtor in their local court. According to the legal system in Singapore filing of petitions that involve debts not exceeding S$ 10,000 is done in the small claim tribunal while filing petitions for cases involving debts exceeding S$ 60,000 is done in the Magistrate Court. The District Courts handle those cases with amounts between S$ 60,000 and S$ 250,000 whereas those that exceed S$ 250,000 get filed in the High Court.
After the agency has filed a suit, the court will serve the debtor with a notice informing them of the lawsuit filed against them. And the date and time to appear in court. The judge will give 8-10 days for the debtor to present a defense. During the case, substantial evidence is required from the agency to prove the case. The case will then be determined. The debtor is expected to appear in court as required by the notice failure to which they lose the case by default.
If the court decides that the debtor has to pay the amount owed, then the debt collector is required to receive it. The debtor is given 30 days to pay the debt, a period in which they can decide to appeal the judgment. Once the period has expired and the defaulter hasn't paid, then the debt collector can go back to the court to seek an execution order.
Execution of a court order
Once served with an execution order, the debt collecting company will have the right to seize property or any accounts that the debtor owns to recover the debt. The agency can negotiate a payment plan or even sell the debtor's property. All they need is a court order to do so.
What can ebt collectors do during collection
Debt collectors can resort in many ways to get the debt settled provided they comply with the law. Some, however, go to extents that scare debtors into paying them. Scaring should not be the case since Credit Collection Association of Singapore set up a Code of Ethics that govern how agencies and debtor settle this debt recovery dispute. Credit Collection Association of Singapore however, has no great deal of authority to impose this code.
What debt collecting agencies should not do
Even though there are no strict laws to regulate the actions of debt collecting agencies it is important to understand what they should not do. In case of extreme mishandling of debtors, it is advisable to report to the authority.
The following are some of the things that collecting agencies should not do:
Violence- Most debt collectors resort to intimidating tactics and violence to get debtors to settle their debt. Some bang on your doors others use abusive language while others threaten to beat the debtors. Make sure you report wrong actions like these immediately.
Vandalism- It is unlawful for debt collectors to vandalize your property. You should report any cases of debt collectors putting posters in your home, stealing anything or even putting banners anywhere on your property as this is unlawful and warrants arrest.
Harassment- This may include calling members of your family or even friends in an attempt to get you to pay the debt. When calling you, never allow them to threaten you or a member of your family. When they do that, by law you have the right to write them a letter telling them to stop calling you. Equally, you should not allow them to use offensive language on you. If they do, you have the right to report them to the authority.
Unlawful intrusion and assembly- The debt collectors are not allowed to send a mob of angry men to your place. Any number of four people and more coming to your property with no good intentions should be reported to avoid physical harm.
Do not let the debt collectors harass or intimidate you in any way whatsoever. Always understand the procedure and your rights to be able to seek justice.
Tuesday, 26 September 2017
Any person or organization owing a debt should try to pay it back as quickly as possible. However, once the lender decides to hand over the matter to a debt collection agency, matters turn serious. Many debt ridden people have faced debt collectors who showed up at the workplace or residence randomly. Debt collectors may sometimes contact relatives and eventually drag the debtor to court. But, knowing a few important tips and things to avoid can help people deal with these agencies without hassles.
A number of debtors panic or get frustrated and result in ignoring these agencies. There are numerous reasons for people to avoid such actions:
1. The credit score of a person suffers immediately when their debt goes into collection. Ignoring the debt collection agency will further result in a bad report being sent to the credit bureau which can drastically reduce a person’s ability to take loans or credit in future.
The debt will not remain the same or reduce on ignoring a collection agency. In fact, collection agencies are allowed to add interest along with cost of collection and penalties to the indebted amount. Thus, the debtor may have to pay a lot of extra money in the end for closing the debt.
2. It’s not unusual for agencies to transfer their clients to other debt collectors. Therefore, even if debtors evade an agency, they will soon have another one bugging them. Since collection companies transfer all of their data, the next debt collector will know the unsuccessful attempts at collection and hence use more hostile tactics.
3. Debt collection agencies are allowed to contact a debtor’s neighbors, employer and relatives in case their attempts to reach the debtor are unsuccessful. These agencies can only contact them to reach the debtor and are not permitted to discuss their debt or financial details. But, such phone calls from debt collection agencies can always raise questions.
4. Many employers look at the credit score of their employee to check their reliability. A poor credit score may thus impact the future and current career options for the debtor. Avoiding communication with collection agencies will only increase the number of bad remarks.
5. On failing to communicate with the agency, they will ultimately be forced to sue the debtor. Defending such cases is very hard and often an agency can register a judgment against the debtor which can permanently deform their profile. Also, in such a case, the agency is usually entitled to a much higher recuperation amount than the initial debt by garnishing the debtor’s wages and bank accounts.
6. Not talking to a debt collector doesn’t relieve the stress but may increase it sometimes. While talking in the first instance generally helps in avoiding further disturbances, ignoring them usually causes the debt collectors to make repeated attempts until they get a response. Also, avoiding the debt collectors will make the creditors and collecting agency skeptic about the debtor which can pose troubles later while negotiating.
During debt collection, debtors can do certain things to avoid being stuck in a bad spot. Avoiding these simple things can help debtors in the long run:
1. Debt collectors may push the debtor to make immediate payments when talking on the phone. They make lucrative offers such as deletion of bad records from credit history but once the debtor has paid the amount then there’s no leverage left to force the agency to commit to its claims. Debtors should wait for their offers in written before making any payments as debt collectors may have made false claims for quick collection and higher commission. By law, debt collection agencies are required to send the debtor written details about the debt within a few days after first successful communication.
2. While talking on the phone initially, debt collectors appear to be very polite and docile. They seem concerned about the debtor and ask them questions about their relatives who can help and financial conditions. These are simple tricks to gather more information about the debtor and force them to pay money using these sources at a later stage. Debtors should altogether avoid giving any details about their relatives, salary or bank accounts to these agencies by stating that they have simply exhausted their resources.
3. Debt collection agencies often ask for post-dated checks promising that they won’t cash them before the given date. But debtors should always get such promises in written as there have been many cases where the collection agencies have cashed them earlier than promised, increased the amount on the checks or tapped into debtors’ accounts through bank details on the check. Overall, it’s better to simply avoid giving any post-dated checks to such agencies.
4. Debt collection agencies may have bought the debts from another organization or may be collecting on their behalf for a certain commission percentage. Therefore, it is always possible to negotiate and reduce the debt amount. Many debtors fail to talk to the creditors or collection agencies and later regret for bad remarks and extra amount paid. Debtors should always try negotiating to minimalize or eradicate bad remarks from their credit score and reduce the debt.
5. Debt collectors may show up at the workplace of the debtor or call them repeatedly causing disruptions in their work and office environment. Instead of arguing or hastily paying them extra amount, debtors can remind them on phone or give a written application that the Fair Debt Collection Practices Act prohibits any debt collectors from calling at work if the debtor’s employer doesn’t allow it.
6. Many times, people do not keep call recordings, messages and other evidence only to later discover that they have paid an unfair amount. Debtors should always check the claims of the creditor and debt collectors to make sure that they are not lying and also keep proof in case they need it in court later. In many cases, the law doesn’t require debtors to pay a stale debt or debt of a deceased relative and they can easily contest the claim of collection agency in a court.
7. Commonly, debtors don’t plan ahead and end up being dominated by the trained debt collector. Having a plan helps the debtor to stick to a story and stay calm during the conversation which can be exceptionally helpful while negotiating. Also, asking relevant questions can deter the collector from lying or using any false tactics as it gives an impression of a well-informed debtor. A well planned conversation also helps people to negotiate clearly and only disclose the amount which they can afford to pay.
Thus, following these simple instructions can help debtors to smoothly deal with debt collection agencies and minimize their losses. A debtor can also hire a professional to negotiate on their behalf and evaluate their case especially if they have a considerable amount of debt. Being well represented can help the debtors in getting a variety of benefits along with significant reductions in the debt amount.
Thursday, 31 August 2017
The uncollected debt was potentially the one thing in abundance all through the economic emergency. It made the world notice that huge debts had a great deal of commercial debt collection agencies up and running all through this period. The business of debts recovery resembles it's setting down deep roots and getting into the business now could be profitable. In case you're thinking of establishing your particular firm in this area, here are a few guidelines you should completely understand.
Knowing the regulations and policies included while in the trade
Commercial debt collection businesses need to discover the procedures forced by a close state. A few states may not permit a debt collection firm to call an imminent debtor a few times when collecting a debt. Different states may conceivably have exacting laws and regulations on commercial debt collection practices and may control communications between the business and the debtor. Knowing the said procedures is noteworthy while establishing your online business. Debts recovery firm owners are the one that may respond to complaints if their trade practice gets questioned. Proprietors are likewise the ones who may potentially likely pacify consumers who may record legal actions. Understanding of these regulations and its powerful practice can turn away getting complaints, and legal difficulties so better get the data you require now.
Comprehending the system
Commercial debt collection enterprise can function in two ways: commission premise and "buying debts." A debt collection firm can work for a credit card firm, for instance, and acquire a commission contingent upon what number of business debts or the amount debt they had possessed the capacity to collect. In this specific system, your company may be the outsider engaged with collecting a credit card debt. You may work for a particular business and get compensation relying upon your proficiency.
"Buying debts" includes a debt collection firm that may "buy" unpaid debts from the business. This practice involves a company that has unsettled debts to "sell" these off at a diminished price to a debt business. Debt collection will then result by methods for the collection organization wherein this business can win more funds by collecting the aggregate sum of the debt.
Obtaining appropriate enterprise connections
Commercial debt collections like another business ought to have connections to pick up recognition. Your state or city may conceivably have local organization groups required with this market so better take a gander at out such groups and consider going along with them. Being a part connected with a distinguished enterprise gathering can offer potential consumers a feeling of assurance that your company is respectable and takes after regulations. You may likewise look to buyer trade organizations to permit you as its part. Such recognition may help launch your company's prevalence considerably more since many people believe in buyer organizations when they look for organizations. Simply ensure you coordinate with the
associations and send the required papers. Membership screening ordinarily requires some investment and the sooner you apply, the sooner organizations can start checking your application request.
Significance of debt collection organizations
Having customers who postpone payments or have late payment has turned into a typical scenario nowadays. Unpaid contribution or terrible debt is an unavoidable issue for all organizations which additionally prompt restricted money flows hampering the growth of the business.
Debt collection organizations assume a crucial role in settling differences between the debtors and creditors. They go about as solution providers at the two closures. The collectors offer services to creditors and guarantee that every one of their debts is collected inside the shortest time conceivable. They likewise help debtors manage their bills in an organized way. Collection agencies are an asset for all businesses as they are experts in the collection of unpaid levy from delinquent customers.
Save important time and resources
They save important time and resources that can be used for business growth. At times, collection agencies will buy the debt from the creditor. Notwithstanding, normally all that the collection agencies secure is the privilege to complete the process of debt collection. It is vital that one should visit these organizations over the Internet to know
the services being advertised. Many organizations have extraordinary training programs for their agents for handling their customers with much care and better understanding. Independent companies are reluctant to request unpaid contribution too strongly. This is because they are not acquainted with the rules and regulations of collecting business debts. They are not clear on how and when to request a payment that is past due. Another explanation behind their reluctance is the dread of losing future business with the customer. It is the place the debt collection organizations come into the picture.
Offer professional services
Collecting debts is arduous and time-consuming. Collection agencies offer professional services to deal with this errand productively. By diminishing awful debts and enjoying great customer relationships, the business is bound to do well. A debt collection agency ought to have the capacity to offer you a variety of decisions with regards to late payment and also customized plans to suit the necessities of your business better. With regards to collecting your debt, you will need results, and you will need them promptly. It is imperative to pick a debt collection agency that can give these services while as yet being the best value. Reputable debt collection firm help you get the debt in a professional way. Once you hire their services all you need is to wait for the debt to be paid to you.
Working a commercial debt collection agency is in no way, shape or form a hassle-free errand however by adhering to these steps, you cover a couple of the more basic features as of now. For more data on this enterprise sort, make certain to look into significantly more materials and consult government websites to know how you will get the required permits. The decision of the correct debt collection agency can be crucial to the recovery of your money, so settle on the best decision for you. An impossible to win no expense benefit is constantly advisable for the best results.
Tuesday, 1 August 2017
Are your customers not paying the money that you merit? On the off chance that yes, then why not hire a professional debt collector who can manage your company's finance related issues? Be that as it may, on the off chance that you claim a start-up, then clearly appointing a debt collector would be a bit troublesome, as you may not have the capacity to manage the workplace's overall finance. Considering, then what else can enable you to get back the debt? I would recommend, visit an agency that exceeds expectations at debt collection. Don't think we are saying this because I claim such a company. However, we are telling this because it has helped many business proprietors of startups as well as large companies, who don't have a separate department consisting of professional debt collectors.
Presently, if you are wondering, is there any great debt collection agency, then I would say, yes! There are many commercial collection agencies to choose from. And in case you don't have contact with any such company, you can do two things:
Call all your nearby ones or business associates, and asks them to allude you some companies that are great at collecting a debt.
And if your nearby ones can't allude you a company that exceeds expectations at business debt collection, then best experience the web. On the web, you'll doubtlessly go over many such companies. Additionally, you'll have the capacity to check their testimonials and other details on the website too.
In case you are still quite skeptical about enlisting a debt collection agency to get back your money, then here are some focuses that will most likely demonstrate that contracting them is without a doubt beneficial. Thus, how about, we take a look.
High Chances to get back debt
We are certain you have contacted the debtors several times and yet, haven't received the money. However, since debt collection agencies have a team of professionals who realize what can be done to get back the money, there are high chances that you may get back your money. It might take some time if the debtors continued changing their habitation or location. However, the debt collectors will make it a point to grasp them with the goal that you get back your amount.
Saves a considerable measure of time
Since you are the proprietor, We are certain you must be bustling dealing with other clients, as well as employees. And that's the reason you may not get adequate time to continue pursuing the debtors. Be that as it may, on the off chance that you hire a debt collection agency, they would do everything required to get back your debt, and you can simply sit back, relax and save your chance.
Debtors will take them seriously
Your debtors may not take you seriously regardless of the possibility that you send them genuine emails and letters. Be that as it may, once they receive a letter/mail from a business debt collection company, they will take it seriously. And you never know, they may restore the money as soon as conceivable too, with the goal that they don't get tangled into some legal issues.
Presently, if you feel choosing a debt collection agency is going to help you out, please choose one and get back your money without much hassle. Choosing a debt collection agency is an important task for your business. Remembering some focuses while choosing an agency would always offer assistance.
Introduction to a collection agency
It is a proprietor that specializes in collecting due amounts. They are of various sorts. Normally a debt collection agency works like outsider assistance when all of your endeavors to gather the debt are disappointingly unsuccessful. Following some tips, while choosing a debt recovery agency will always offer assistance.
Distinctive factors to consider while choosing a debt collecting agency
You can get a rundown of collection agencies on the web. In any case, you should check their credentials before you hire any of them. These sort of agencies should be licensed in some of the states. Therefore, you have to check your state laws to make beyond any doubt about the predefined condition and check if the agency you are going to hire is legitimately licensed.
It would be better if you take an agency that is more focused on the kind of business you have with the goal that the agency can better understand the situation and it may greatly help in the debt collecting process. You also need to settle on the scale of the debt collection. The scale of operation means you can take a firm that operates throughout the world or a small local firm.
The following considerate factor is taken a toll. It would not be a shrewd decision to hire an agency charging the most reduced cost. You should choose one of the agencies by comparing their rates of recovery. Other collectors charge a flat expense while others charge a percentage of their collection. Try not to hire a firm only because you have been guaranteed for a small percentage. What if it fails to recover any significant amount? You will have no profit then. On the contrary, in case you choose an agency that charges all the more, however, can recover a greater amount, you will have profited.
Having realized that, below are the benefits of utilizing debt collection benefit.
You can save on assets and money
This is redundant to allocate the debt recovery task to the staff individuals. Outsourcing the occupation or enlisting a debt collection agency is what only can save a great deal of time and can make the exertion fruitful. This is the reason why procuring the debt collection firm is always a smart thought for an organization than keeping your employees doing as such!
It will help you to keep focused on your business
Obviously, a debt collection company is responsible for giving a business a total concentrate on their work. A collection agency takes all the responsibility of everything and leaves the business to concentrate on their real work only!
Using a debt collection agency to recover payments is the best strategy for each startup business and is the most common type of Recovery process that each business should consider to give more priority to work than the hassles.
You will recover debt sooner
Debt collection is not an easy employment, and it takes time. However, if you are taking support from a collection agency then chances are high that will get your payments rapidly. The key of fruitful debt recovery process depends on how you approach your customers, if you can prevail on that, you can easily then recover your payments, which is what a debt collection agency better understand.
Saturday, 29 July 2017
Capital is a general requirement to keep alive the business and the associated practices. Irrespective of whether you are operating the small company or a large, the finance of business is the blood which keeps the market activated. The agencies that provide services in the domain of debt collection are often described as the company where expert formulates the methods to collect and recover the bad financial indebtedness from the debtors. It has been seen that every company makes challenging novice ways to keep the fund's flow correctly. Accordingly, it is also important to ascertain that your business is not suffering from superior business financial responsibilities.
Unquestionably companies offer financial indebtedness to the business for a particular time duration so that it does not generate trouble to the financial status of the firm in the market. Henceforth making the role of outsourcing the work a crucial step and for that, it becomes essential to hire debt collection agencies for business individuals and companies.
Enterprises or businesses can go for debt collection agencies to recover their bad debts from customers. The reason behind it is that sometimes recovering the bad debt becomes an elongated situation for businesses and companies. This happens when the company fails to recover their bad debts. Here the working of such agencies comes into the picture as these debt collecting agencies correspond to the particular procedure to retrieve the cash from the debtors.
The system could turn more severe with small companies where the conditions of debt are quite large. It has also been seen that in small businesses the problem is serious as they lack the support of all members during hard times. Hence small business owners need a separate approach towards it. Oregon debt collections agencies will feature the list of companies providing services in the domain. To guarantee that legal issues do not grow in the coming future, you should look for the companies which have a legal, judicial proceeding managing to provide legal advice on how the debt can be recovered from defaulter using legitimate means. Other benefits that they allow people who cannot manage to pay the right amount for the settlement then they can have the advantage to pay into an escrow account until the time the entire amount is not there as a balance to complete or satisfy the negotiation number.
Tips To Protect Your Home Using Security Door Locks
Our first defense from an intruder is the lock that we choose for our front door. I am going to teach you how to choose quality security door locks for your property. The three that we will focus on will be the keyless entry, the fingerprint locks as well as deadbolt locks. The first two locks involve electronic technology; the deadbolt works manually with a key.
The keyless lock is a genius invention. There is a computer chip built into the lock itself. You will pick a code, something that you will remember, you will key in the code that enables the locking and unlocking action. This lock can not be opened except by the law holders. This lock will keep a thief from gaining entrance into your property.
Before you install your keyless entry lock, you will need to choose your code and key it into your lock. Then you need to make sure the lock works in that it will lock and unlock with your code. At this point, you need to read your installation instructions that come with the lock. Go step by step paying attention to the details. After you get, it installed check your code again to make sure it works correctly.
Let us move on to the fingerprint lock; this is unique in that it can read your fingerprint and will lock or unlock your front door. There will be a pad on the lock that you place your finger on, if it matches the print in the lock then it will unlock for you. It is a fact that the fingerprint lock can not be picked or opened by someone trying to get into your home.
The fingerprint lock is available in a kit. This kit has detailed installation instructions. As you are reading through the instructions, it will show that you need a few tools to help you complete the job. You will need basic tools, and they are a drill, hammer and nails, and a few screwdrivers. When you are finished installing the lock, it is that point when you use the fingerprint pad, and your fingerprint will be the first or the administrator fingerprint.
Most people have seen a deadbolt lock. The locking mechanism is almost two inches long by one inch wide. As the lock is turned, it will slide into space in the door frame and will close the door. This is excellent protection but in my opinion having a double deadbolt lock is twice the protection. The installation is all the same for the double or single deadbolt lock.
If you have never installed any lock before it is straightforward if you first read the instructions that come with the lock. It will give you a list of tools that you will need to install the lock. This is a basic lock that does not have any electronic technology. This lock works with a key that you turn to lock and unlock. Always try the key in the lock when you complete the installation process
To wrap it up each lock that we have discussed does have security dependency. Each lock will be a different price, the fingerprint lock is probably the most expensive and the deadbolt locks are the most inexpensive of the three. The research I have indicates that the fingerprint lock is the best because it can not be broken into. You might have to do some personal research on your own to determine the best lock for your properties.
Tuesday, 23 May 2017
Capital is a general requirement to keep alive the business and the associated practices. Irrespective of whether you are operating a small company or a large, the finance of business is the blood which keeps the business activated. The agencies that provide services in the domain of debt collection are often describes as the company where expert formulates the methods to collect and recover the bad financial indebtedness from the debtors. It has been seen that each and every company makes challenging novice methods to keep the fund's flow in the correct manner.
Accordingly, it is also important to ascertain that your business is not suffering with superior business financial responsibilities. Unquestionably companies offer financial indebtedness to the business for a specific time duration so that it does not generate trouble to the monetary status of the firm in the market. Henceforth making the role of outsourcing the work a crucial step and for that it becomes essential to hire debt collection agencies for business individuals and companies.
Companies or businesses can go for debt collection agencies to recover their bad debts from customers. The reason behind it is that sometimes recovering the bad debt becomes an elongated situation for businesses and companies. This happens generally when the company fails to recover their bad debts. Here the working of such agencies comes into the picture as these debt collecting agencies corresponds to the particular procedure to recover the cash from the debtors.
The procedure could turn more severe with small companies where the conditions of debt are quite large. It has also been seen that in small companies the problem is severe as they lack the support of all members during hard times. Hence small business owners need a separate approach towards it.
Debt collections agencies will feature the list of companies providing services in the domain. Once you have hired a licensed, bonded and insured debt recovery agency, its employees will manage the indispensable paperwork and negotiate with debtors on your behalf to save your time. To guarantee that legal issues do not grow in the coming future, you should look for the companies which have a legal judicial proceeding manager to provide legal advice on the ways in which the debt can be recovered from defaulters using legitimate means. Other benefits that they allow people who cannot manage to pay the direct amount for the settlement then they can have a benefit to pay into an escrow account till the time the entire amount is not there as a balance to complete or satisfy the negotiation amount.
Whoever comes collecting, there are rules and guidelines which they must follow to preserve consumers' rights.Here are some of the rules that you as a debt collector may be required to follow.
A debt collector may:
*Call other people trying to find out the debtor's name, address, and place of employment. They are only supposed to call one time and may not discuss the debt with friends or family of the debtor.
*Send letters requesting payment. A debtor may, however, send a request in writing, certified with a return receipt from postal service to ask them to stop contacting you.
*Call the debtor looking for them. If the debtor gets on the phone and tells the collector that they may not call him/her at work, they are supposed to stop.
A collector may not at any time
*Contact the creditor once he/she has an attorney representing them
*Harass the debtor
*Threaten violence or harm
*Intentionally try to embarrass the debtor
*Use profane language
*Falsely represent themselves
*Threaten property seizure without a court judgment
*Threaten court proceedings without any intention of doing so
*Send the debtor postcards
*Indicate letters sent are legal forms if they are not
There are many types of debt collection agencies. It is important to understand how each one functions in order to select the best collection process for you.
Delinquent debtors are guaranteed to meet a debt collecting agency in order to collect their debts. Whether it's the collection department or a third-party agency, a collection agency processes the debt situation. They are responsible for checking the debt records, which includes the debt to be paid, as well as the interest (if there is any) and the deadlines for these debts. Truly, the debt collecting agency makes it easier to collect debts on behalf of the company that the debtor owes from.
There are three most common types of debt collection agencies. The first debt collecting agency is called the first party agency and is a department or subsidiary of the company which the debtor owns from. Because it is the first party, the debtor connects directly to the creditor. This type of agency is usually compelled to create better customer relations since they represent the lending company.
The second type of debt collecting agency is the third party agency. The third party agency collects in behalf of the creditor. Some companies opt to get a third party agency because they seem to have more expertise in collecting from debtors. This might make the job easier. However, a percentage of the debt will be acquired by the third party agency according to an approved contract - sort of like a collection fee or an incentive for successfully accumulating the debt payments. Some debtors are wary of third party agencies though, since this type of agency is more prone to scamming and theft.
The last type of debt collecting agency is the debt buyers. Debt buyers are individuals or organizations who purchase the debt amount from the creditor. They may choose to pay the debt in full or partiality. Afterwards, they would collect the debt from the debtor, usually with interest. This might be an advantage for the debtor, especially if the debt buyer offers a lower interest rate over a period of time. By choosing to pay the creditor and looking to the debt buyer, the debtor may save himself from being buried in high interest rates.
Each country has a different policy about debt collection. It is important to fully weigh the pros and cons of the different debt collection agencies available before settling on one.
Tuesday, 21 March 2017
Sometimes, business finds itself in difficulties when it comes to collecting debts. Every business face such kind of consequences whenever their customers unable to pay their payments that they have owed. If you are one of those an entrepreneur dealing with such problems, you can always consider support from a collection agency.
For those who do not know - Debt collection firm is a firm that is hired by a creditor to recover overdue debts. Business owners usually urge to take this step when they are not able to deal with their customers to recover their money. Usually, hiring a debt collection agency is the last resort that a company usually takes, but comparing to its benefits, I believe, this should be the first resort that every business must consider to deal with debt recover hassles.
Below are the brief details about the advantages of having a collection agency. Please follow the through the reading and find out what important roles that a debt collection company plays in an organization!
Benefits of using debt collection service
1. You can save on resources and money
This is completely redundant to allocate the debt recovery task to the staff members. Outsourcing the job or hiring a debt collection agency in Singapore is what only can save a lot of time and can make an effort fruitful. This is the reason why hiring the debt collection firm is always a good idea for an organization than keeping your employees doing so!
2. It will help you to keep focused on your business
Of course, a debt collection company is really responsible for giving a business a complete focus on their work. A collection agency takes all the responsibility of everything and leaves the business to focus on their real work only!
Employing a debt collection agency in Singapore to recover payments is the most effective strategy for every startup business and is the most common form of the Recovery process that every business should consider to give more priority to work than the hassles.
3. You will recover debt sooner
Debt collection is not an easy job and it takes time. But if you are taking support from a collection agency then chances are high that will get your payments very quickly. The key to successful debt recovery process depends on how you approach your customers, if you can succeed on that, you can easily then recover your payments, which is what a debt collection agency better understand.
4. They are cost effective
If a business carries out its own debt collection, it must remove staff from their existing jobs so they may be deployed chasing up the outstanding debts, unless of course, additional staff are specifically employed to carry out this function. In either event, it is not really cost-effective for the business to do this, since the first option would mean existing staff are unable to undertake the jobs for which they were originally employed, whilst the second option, will place additional expenses on the business.
5. They restore your valued customers
Debt collection can be very challenging and involves a lot more than just issuing a few letters to wayward debtors. If handled incorrectly, the business could lose not only money but valued customers and credibility and, in extreme instances, could find itself at loggerheads with the law.
Criteria in choosing the best collection agency in Singapore.
In a business, the ideal setup is that an owner sells his products or services and the customer pays for it within a specified period of time. Usually, a one-off payment is expected. However, if the total amount is quite steep, some business owners do provide an alternative payment option, with the total cost usually divided into several installments (with or without the addition of interest) to be paid over an extended time period. Sometimes people tend to delay in paying the debts and here is where debt collection services Singapore are here to help.
Here are the following criteria you should look out for in a reliable debt collection agency:
If they've been doing this business for many years and have survived up to now, you more or less get the idea that they know what they are doing and are actually good enough for clients to keep subscribing to their services. When the company profile shows that they are a legal entity and there are more than a few happy clients who confirm their competence through reviews, then trust that they are able to make you happy, too. Check this site for a more detailed look at a particular debt collection agency.
2. Punctuality and Speedy Service
Because time is of the essence--the uncollected debt may be used towards payment of an overdue office rental fee, for example--you would want your debt collectors to consider as valuable a speedy and prompt collection. When you first meet them in person, you will be able to determine how they value promptness based on their own punctuality for the meeting. When this factor is also valuable to your debt collector, you can be assured that they will do their best to make sure your debt gets collected within the agreed-upon date.
3. Professional, Individualized Treatment
A quick look at their methods will also show to you just how they prioritize you as client. The traditional way of collection usually makes use of sending out collection letters before a personal appearance at the door, but this will take time. If your needs are urgent, the company should be flexible and adept enough to employ other methods that would get the ball rolling. Other forms of communication they can employ to reach your delinquent clients are SMS and email messaging. When a company uses as many methods as possible just to get the debt resolved without having to go to court, you get the sense that they take your personal crisis as seriously as you do.
With so many debt-collecting agencies around, it is very easy to think that each company provides you with the same generic service and there really is no need to go through a comparison check. However, given that such a service can be pricey, it would be to your advantage to evaluate these agencies first before deciding to hire one of them. Go for the company that provides you with the best quality service for the fee they charge.
Monday, 6 February 2017
People use these agencies for some reasons, so it is important to seek the advice and service of one that best suits your needs. Debt collection agencies can typically offer more help than what one might initially think. One of the most common questions when choosing between debt collection agencies is in regards to cost.
The Costs Involved
An agency should offer more than one option for payment to offer a more customized plan for you. Choosing the right option for your needs will help ensure better use of your debt collection agencies services.
A debt collection agency may offer a flat rate plan. These plans offer services for a set fee to keep your costs fixed. Within this plan, even more, customization may be available, depending on how often the services of the debt collection agency are required. You may be able to choose between monthly plans or even on an as needed basis.
No Win No Fee
One common payment plan that many debt collection agencies use is to collect debts with no fee. The purpose of this plan is to offer a low-cost alternative to other plans. If debts are not collected, typically no payment is required. If the debt collection agency does collect debts, they will then withhold their commission rate, which varies among companies and the amount of debt that has been collected.
Can The Debt Collection Agency Measure Up
It is important to determine if your debt collection agency can be customized for your needs, depending on the type of business you have and the amount and type of debt that you need to be collected. For example, landlords of both residential and commercial properties can seek the service of debt collection agencies to pursue overdue and unpaid rent. While it is common for landlords to be owed rent, it is important to be sure that your debt collection agency fully understands the details for completing the necessary paperwork and how to successfully collect the debt owed to you promptly.
I Have A Judgement But No Money
Perhaps you are owed a debt, so you have filed a judgment in an attempt to claim the money owed to you. To be enforced, the services of a debt collection agency that is experienced in this field may be required. A judgment does not collect your money, therefore, it is important to find a debt collection agency that understands how judgments work to get results.
Choosing Your Agency
A debt collection agency should be able to offer you a variety of choices when it comes to payment as well as customized plans to better suit the needs of your business. When it comes to collecting your debt, you will want results, and you will want them promptly. It is imperative to choose a debt collection agency that can provide all of these services while still being the best value.
Boosting In-House Debt Collection.
Recovering delinquent debt drains resources, and the recovery process often fails. With the time, money and workforce spent on debt collection, many businesses find it more appealing to hand off delinquent accounts to a debt collection agency rather than face the negative impact on the company.
Many businesses fail to note that in-house debt collection can be a rewarding endeavor if handled properly. Determination aids in the success of businesses' internal debt collection results and with some insight, can save a great deal of time and money.
The trick is to get started before the debtor is delinquent. Call the client before the payment due date as a reminder so that more of the individuals and companies with which business is done will make payments on time.
Don't wait until payment is thirty or more days late. Debt collection success requires making contact early on. Make the first call or send the first letter to collect the debt ten days after the payment due date. Doing both in conjuncture with each other drives home the necessity to pay, so call first, tell them they will receive a letter and send it immediately upon ending the call.
Being congenial on the first attempt to collect the debt achieves great results. However, as debt delinquency grows, businesses must be more adamant and firm in their stance to demand payment if they expect to see results. Without a final show of determination, it is highly likely that the debtor will ignore the attempts at recovery.
One way to increase the bottom line is to pursue smaller debts first. These are more easily recovered because it is more likely a debtor can pay the smaller sum immediately. Debt collection is a more difficult task with larger sums since these are often harder to gather and sometimes require working out a payment plan.
Cut off credit lines. For those in the debt collection process, it is necessary to restrict purchases to advanced payment options, meaning they are no longer extended credit by the company. Extending credit to clients with delinquent payments does not motivate them to pay the outstanding sum, nor does it drive home the insistence that all bills be paid on time in the future. If a debtor is unable to purchase needed supplies or services, they are more likely to find a way to pay the amount due.
A great deal of time and money can be saved in debt collection by working smarter and using a little common sense. By following a few simple rules, businesses can increase the amount of delinquent debt they recover while saving on the cost of doing so. Resolve and hard work can boost in-house debt collection significantly with the right attitude.
Friday, 13 January 2017
Being a service provider, you would love it if your clients are paid on time. But then, there are so many times when your clients just would not wish to adhere to your wishes. Payments get late, sometimes inordinately. As a service provider, you may just not be able to afford the delay in payments. In such a scenario, you should be using the services of debt collectors in Singapore to help you collect the debts from other parties.
The word Debt collection agency or a debt collector makes a lot of people feel that they use covert and coercive methods to recover debts from people. In reality, these guys use rather sophisticated debt collection methods, which will not compromise on your relations with your clients. Let us face it Delinquent payments, unnecessary and unprofitable for your business, is an unavoidable aspect in most business transactions. Things possibly could get worse what with the financial turmoil in the economy.
The Debt collectors are often referred to as first party collection agencies because of their contact with the merchants. Outsource the debt collection function to them, and allow them to deal with the merchants in the way they know. This means you can be assured they would not use any means that can detrimental to the interests of your clients.
In most cases, you would find that the debt collection agencies call or send emails to your clients. Sometimes, they would visit the clients, but this would be only after the clients agree to them visiting. The objective of the activities of debt collectors should be understood well. What do you want them to do? Do you want them to collect debts for your business? Do you want to get a time commitment from your client on the payment?
In essence, what you want your debt collector to do will outline most of what they do. This is something you as a business should decide before hiring debt collectors. Remember, your clients may not have paid you in time on two counts:
1) They did not like your services or products.
2) They have run short of money because of which they are not able to honor the commitments.
Point 1- means you may have to improve your services or products so clients like them.
Point 2- means you should be empathetic to your customer's situation. If there is something that he cannot pay now, you should understand that the payment may well be on its way some time in the future. Approaching delinquent payments with this kind of mindset is beneficial for your business, as it would help you build a good rapport with your clients. On ground, you could have the debt collector do this for you. But in your mind, you need to make the change first.
Below are some main points to consider before choosing debt collectors in Singapore:
* How long has the debt collector been running?
*Whether the agency have encounter with client accounts similar to yours?
*Has the collection agency worked with businesses of your size?
*Is the agency able to handle the quantity of debts involved in your case?
* What are the company's strategies for collecting debt?
*Are the collection agency employees well-versed in debts collection laws? Can it give references of customers, which you can verify?
*What are the collection company's charges?
Benefits of Hiring a Singapore Company to Manage Overseas Debt Collection
When you have a business to run, you don’t want to waste time chasing your outstanding receivables, when this can be managed by overseas debt collection experts for you. These debt collectors will constantly monitor the dues from customers, follow up on receiving them and maintain necessary records in compliance with legal requirements for you, while at the same time building and maintaining a relationship with your clients. These companies will have multi-lingual speakers, who also possess the required legal knowledge required to be able to easily communicate with individuals in whichever country your client may be from. You will even be saved the hassle and time of doing a background credit check on new or potential clients or analyzing their ability to make payments, as these services will also be performed.
Benefits to client and debt manager
While the debt manager will receive updates via the software of payments received or new debtors, view any client’s account or payment history, draw a debt collector’s attention to certain matters and view performance reports, your customer will be able to view his own account online, communicate with you, make an online payment, receive live updates and other communication translated into any of 26 available languages. This streamlines all processes and communications simplifying the high volume debt collection process.
A complete overview
While some companies may apply a universal policy to the process of debt collection, a good overseas debt collection service provider will analyze your particular companies needs and its current position in terms of outstanding receivables. It will then formulate a suitable strategy, keeping in mind the type of client, which country the client is in, your existing relationship with him/her, the impact of the outstanding on your company’s cash flow etc. and accordingly begin to implement a suitable collection strategy.
Tracking your debt collection status
A competent overseas debt collection company will make it easy usually via suitable software or access to online data for you to always be in the know of what the position is on outstanding amounts owed to you. This data is usually made available via an online register.
In conclusion, at the end of the day debt collectors are just doing their job, if you are patient and polite to them chances are they will reciprocate and work with you within reason to help you get out of debt. Collection agencies help your business in reducing bad debts and improving client connections. Be prudent in selecting a Collection Agency for your business. The right collection agency is a valuable business partner.