What are Professional Debt Collection Services?

Professional debt collection services are providers that specialize in collecting delinquent accounts. These accounts are usually referred by companies for services rendered where payment was billed and not paid (ex. credit card companies, healthcare institutions, personal finance lenders, creditors and other businesses or companies that extend credit to their customers.

What does a professional collector do?

Professional collectors pursue delinquent accounts. They use Skip Tracing, a tracking system that can locate elusive customers. When the information about the whereabouts of the client has been acquired, the collection agency sends a notice to the delinquent customer to give him the chance to either dispute or validate the claim. A call will also be made wherein the customer will be asked to render full payment for the amount he owed. If this cannot be worked out, the professional collector will help the customer to come up with a payment plan to pay off his debt.

Why are certain accounts referred to collectors?

Accounts are turned over to collectors when creditors are unable to resolve the accounts with their customers. They are called delinquent accounts because it has been overdue for several months and the customers are unresponsive. Third-party collection agencies utilize advanced collection software, sophisticated phone systems and intricate computer systems that are specifically designed for the collection industry.

Are all debtors the same?

No. Most of them may not be able to pay their debts but they didn’t reach that point the same way. Some experience financial crisis when they lose their jobs or when their business goes bankrupt. Some may have an ill family member that causes them to allot their finances to pay for medical bills. Each have different circumstances and for this reason each debtor needs to be approached in a unique and professional manner.

What should one do if he/she receives a notice of collection?

First, you need to stay calm. Despite the difficulty you’re experiencing in keeping up with your payables, remember that your creditors need your payments for their livelihood as well. Second, you need to cooperate with the collection agency to prevent your situation from becoming worse. Do not be afraid of collection agencies because they are primarily there to help you.

What are the things that a collector cannot do when contacting a customer?

Collectors are not allowed to harass customers. They should not lie about their identity. They are also prohibited from making threats that they are not authorized to carry out.

What happens if the debtor I placed for collection contacts me and wants to work out a settlement arrangement?

Debtors sometimes do this to delay payment or to avoid contact by the agency. Once the account is placed for collection it is best to distance yourself. Please refer them immediately to our office.

Is there a collection fee if the debtor sends their payment directly to me after I've placed them for collection?

Debtors placed for collection are immediately contacted by our Account Resolution Specialists. Sometimes they resent having been placed for collection and send their payment to the creditor. In such cases, please let us know if payment was received so that collection activity will cease. If payment has been received due to our collection effort, then a fee would be warranted.

If you are unable to collect the account I placed, then what?

If the debtor continues to ignore our efforts, then reporting them to a National Credit Bureau or pursuing litigation may be warranted. Such activity involves the services of an outside collection attorney and additional contingent costs will apply. No action is pursued without your authorization. If you choose not to move ahead, the file is closed and confirmation is sent to you.

Couldn't find your answer?

If you would like to settle your account, or have received correspondence from RMCB, please call one of our Consumer Service Representatives at 1-844-505-DEBT (3328).

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