When a collection agency takes on a new claim they are immediately in the red, meaning they lose money. It costs money to research a claim and to be successful you must do your due diligence and learn as much as you can about the debtor. It is a gamble on the collection agency’s part to undertake new claims, but new claims are the lifeline of the agency.
The disadvantage of going in for debt- settlement negotiations before default is that the card issuer will not be interested in helping you out. Further, the card issuer might transfer the account to a Debt Collection Agency Scotland.
This may seem unfair and completely illogical. Well, is taking steps to iron out these flows. However, there is no guarantee that this will always work in your favor. Once your credit score takes a hit, there is no way you can bring it back to its original position. You cannot file a dispute and you cannot take action against the credit bureau for interpreting the transaction in a particular manner.
Again, even if you win the case and are not successfully sued, that debt collector can sell your debt to a different agency, which started the whole process over again. Depending on the size of your debt, if the cycle continues it may not be worth your time and effort ignoring the letters and phone calls. It may be time to just pay the debt back. This situation can keep going on and on, each time with the same outcome.
In some cases, outsourcing your debt collection duties means eliminating problems before they start. That’s because some collection agencies will actually handle your accounts receivable duties for you.
The idea of turning the tables on debt collection agencies is not to enable you to ignore your debt problem. If you ignore it for long enough it will get to the stage where drastic legal measures are taken. You should use the breathing space given by these techniques to consider what the long-term solution to your debt problems is going to be, and get some good free advice.
If a debt collector has been violating your rights, you need to fight back. The FDCPA allows consumers to sue debt collection agencies, and the Federal Trade Commission frequently brings lawsuits against rogue agencies. It’s important that you understand your rights and stand up for yourself.