Unlike traditional debt collection methods, which require the debtor to repay the entire amount at once, collection agencies charge a fee to obtain the funds. In most cases, they collect the debt from a third party. However, in some cases, debt collectors will also purchase the debt from a third party, known as a debt buyer. These agencies purchase the debt for a percentage of its value and try to collect it. The laws governing debt buyers differ from country to country.
A collection agency’s notification letter will include the debtor’s name, mailing address, telephone number, and specific amount owed. In some cases, the debt may be a couple of years old or more. A collection agency will try to collect an old debt for months or even years. A collection agency can come after you even if the debt is several months late. Depending on the amount owed, the debt notification letter can be very important.
If you are having problems with a collection agency, you can consider suing them. If your debtor refuses to pay, you can collect your money through a lawsuit. Just make sure you collect documentation of their actions. In most cases, you have one year to file a lawsuit, but this process can be expensive and lengthy. If you’re not comfortable filing a lawsuit, you should consult an attorney. In Washington State, you can also file a complaint with the Attorney General’s Office.
When hiring a collection agency, it is important to ask about their method of collection. Not only should the agency provide the debtor with an official letter, but they should also give you contact information so you can dispute the debt. The Federal Trade Commission (FTC) has data on bill collectors and can help you decide whether a collection agency is the best option for you. If you are unsure, you can request a free consultation with a professional. Click here for more information about collection agency information.
When you hire a collection agency, the agency must provide you with a validation letter. This letter should state the type of debt you owe and its status. You should never receive a letter from a collection agency unless you have received a valid validation letter. If your debt is invalid, the collection agency will not pursue you. If you find this, you should try to resolve the matter with the agency first. If the debtor refuses to pay, it can be a good idea to look for a solution.
A collection agency can also be sued. It’s a good idea to gather documents related to the actions of a collection agency. The law provides that you have a year to file a lawsuit, but the process can be expensive and lengthy. Therefore, it is highly recommended to consult with an attorney. You can also file a complaint with the Federal Trade Commission or the Washington State Attorney General. They will investigate the matter and determine if the agency is responsible for the debts you owe.