Understanding Debt Collection Procedures AZ to Collect Debts
There are a lot of confusions and misconceptions related to the debt collection procedures AZ. Some people think that the collector of the debt would call them and demand for the debt and others think that they might be put behind bars if they do not give the debts. This is not true to some extend, all the debt collection agencies work according to the rules and regulations registered under the law. The procedure of debts to be collected by the debt collection companies AZ are
Sending demand letters to the debtor
One of the first debt collection procedure in order to collect debt from the debtor is to send them demand letters. The letter which is being sent by the debt collection agency should be created from the templates. This is to tell the debtor how much they owe and also the interest charges they have to bear. Moreover, in the demand letter time limit to pay the debt is also mentioned.
Making collection calls
After sending of the letters, the debt collection companies AZ make collection calls to the debtors. In these phone calls being made by the collection agency, a representative of the agency would speak to the debtor and ask them to repay the debt in time in order to avoid any kind of legal action.
Reporting to the credit bureaus
One of the most destructive things involved in the debt collection procedures AZ is that the agency might write a letter to the credit bureaus. By doing this, the credit bureaus would make a note of collection which is to be sent to the debtor. This might leave behind a negative effect for the debtor as this information remains in the credit files of the credit bureaus for 7 years.
Filing of lawsuits against the debtor
One of the last step which is included in the debt collection procedure, is that if the debtor fails to make the payment of time the agency might file a lawsuit against them. The filing of the lawsuit against a debtor depends on the amount of the debt.