When debt goes into collections, it typically means that the original creditor has given up on trying to collect the past-due amount and has passed the account on to a third party. Debt collectors are often hired by creditors or banks to attempt to recover outstanding bills, such as credit cards, mortgages, auto loans and student loans. Generally, debts go into collection after they are 120 to 180 days late.credifin-nederland.nl
From Default to Payment: The Journey with a Debt Collection Agency
During the collection process, a debt collector may contact you by phone, email or text message. You have the right to request that they provide proof that you owe the debt and the name of the company you owe it to. They must comply with your request within 30 days or stop trying to collect the debt. You also have the right to formally ask a debt collector to only contact you through certain methods, such as by mail or your attorney. However, a debt collector cannot reveal to others that you are being collected or discuss your indebtedness with anyone except for family members, spouses, parents or guardians (if you are a minor) or associates who have your permission to do so.
Creditors usually pay a percentage of the debt that they recover to debt collectors who successfully collect on their behalf. This is one of the primary reasons that it is important to work with a reputable and ethical debt collection agency that complies with all legal requirements.