When customers use a credit card or incur some other debt, they usually have the choice of paying the total amount due when the bill arrives or making at least the required minimum payment. Eventually some consumers may have problems in paying their credit debt. This depends on several factors which vary among individuals, including job losses or illnesses. Or, it can be the result of consumers overextending their credit until the ratio of income to credit has drastically decreased. Simply put, the paycheck cannot cover the bills any longer, including the credit account/accounts. Ultimately, regardless of the reason for the delinquent payments, creditors hire Collection Credit Services for their bad debt recovery and accounts receivable collections.
There are innumerable businesses and organizations that use the services of the collection agency. Some of these not only include businesses that give commercial credit accounts, but also businesses that are in other fields such as the medical industry (dental care, hospitals, and clinics, etc.) and service industry (such as utility, real estate, and cable companies). In fact, any time there is an uncollected debt or unpaid account, the Collection Credit Services agency will most certainly be hired.
Sometimes, Collection Credit Services may have the authority to offer customers a debt reduction to induce payment. The agency may also recommend clients to take legal action for uncollected debts. However, there are certain legal limits the collection agency must respect. For example, the collector cannot use threatening language and cannot call before 8:00 A.M. or after 9:00 P.M. Also, the collection agency may legally contact the debtors' employers to verify their employment or their wages.
Moreover, the principle goal of Collection Credit Services is to resolve problems with any unpaid accounts. In order to do this, the collection company will use letters and phone calls in collecting debts. However, often the company contacts consumers with the telephone. This method produces approximately ten times the result of letters. In telephone contact, the company uses a "predictive dialer" which automatically establishes contact with consumers about once every three days, sometimes more often. This procedure continues until individuals either pay in full or agree to specific payment arrangements. Of course, Collection Credit Services will continue seeking payment from the non-paying customer until clients no longer need or want their services.