Five Things To Know About Debt Buyers
We have seen many lousy rap debt collectors on television and in movies. Most of the misconceptions about debt collectors come from the behavior of debt buyers. If you are looking for ways to pursue unpaid invoices, it is best to contact a debt collection defense attorney Chicago and understand the difference between debt collectors and debt buyers.
Things to know about debt buyers
They can hurt your reputation.
Once your debt is sold, you cannot control or handle your account. When they start collecting on a debt, they will have to reveal the amount of money owed. Consumers may not have any idea that it is not you or your agent but a different person. It means the action of the debt buyers will reflect on your poorly.
Debt buyers usually do not pay a lot.
Debt buyers pay you pennies on every dollar of your unpaid invoices. They will pay less if the order is old, which is part of their business model. Most debt buyers buy multiple debts cheaply (usually thousands) on the chance that they can collect some of them.
You do not have to tell people that you have sold their debt.
There is no need to tell customers that you have sold their debt to another company. The person will not find out until they receive a letter from the company saying that the debt has been purchased.
Once you sell them, there is no coming back.
Once you sell the debt to a debt collector, you can no longer be able to collect any money on it. If you see a debt of $1000 to a buyer for $100, that is the only money you can receive, even if the buyer collects the total amount.
Debt buyers often have their debt collectors.
Debt buyers often hire debt collectors to collect the debt themselves. So, if there is any chance that your unpaid debt has to be collected, you should work directly with the debt collector. Most reputable debt collectors work with contingency, so you will not have to pay if they cannot collect.
If you have unpaid invoices, there are many options open for you. The Fair Debt Collection Practices Act does not allow collectors to use abusive or deceptive practices to collect debts. Therefore, if you face any such problem, it is best to hire a debt collection defense attorney to make the best decision.