Credit: SDI Productions via Canva
Needing to collect owed money isn’t a new challenge, and collection agencies have been around for centuries helping businesses with collecting unpaid debts.
During the Great Depression in the 1930s, large corporations in America relied on agencies and foreclosures to retrieve theirunpaid debt. Since then, there has been a negative outlook on collection agencies. What some don’t know, however, is that nowadays, many agencies prioritize fair treatment and avoiding aggressive collection tactics.
Most collections follow the Fair Debt Collection Practice Act (FDCPA) and collect unpaid debt both efficiently and ethically. When you need to collect payment on delinquent debts, don’t leave it to the very last minute – find a reputable collection agency. Collection agencies are here to get your money back without alienating your customers or debtors.
As times are changing in the debt collection world, don’t wait any longer to collect your unpaid debt.
Debt Collection Changes
Like most things in the world that we live in, debt collection is approaching a significant change. After more than seven years of deliberation, changes are comingto the FDCPA as the Consumer Financial Protection Bureau (CFPB) has finalized new terms for debt collecting.
What You Need to Know
The CFPB is making changes to meet the consumers of 2021 better. In October 2020, the CFPB issued a rule to clarify the prohibition of harassment, abuse and, overall, unfair practices issued throughout the debt collection process of consumer debt.
The Bureau made these changes to give consumers more control over communication with the debt collection process.
Some changes include:
- Debt collectors cannot call you more than seven times within seven consecutive days after having a telephone conversation about the debt.
- Debt collectors can send you private messages on social media.
- Any contact through social media must have an “opt-out” instruction message attached.
The new rule will take effect on November 30, 2021, and it is the first change to the FDCPA act since it was issued in 1977. As the collection world begins adapting to the world of social media, it’s important to get your owed money now.
Return Your Focus to Your Business
Unpaid debt looms over not only the debtor but also the business. It can affect the business owner as this process requires valuable time. This is when collection agencies step in.
Once you hand over the unpaid debt to a collection agency, your focus can return to your business. The agency will find the debtor and will handle the collection process.
The Longer You Wait, the Harder It Will Be
If the debt has been overdue for a while, it becomes a more complicated process to get your money back the longer you wait. There’s even a chance that the debtor may not reside at the listed address, which adds another step into the debt collection process.
If the debtor is untraceable, this is when you acquire a private investigator to handle the skip tracing. When you team up with a renowned debt collector, some have a skip tracing department that handles finding the debtor and retrieving your money owed.
Debt collecting is a sensitive and time-consuming job that requires attention, an experienced teamwhile complying with the FDCPA.