Helping people reach their goals
About Me
Helping people reach their goals

By getting people the loans they need, I can help them reach some financial security. My loans help people by new cars, extend their house and consolidate expensive debts. Once they get their money issues under control they start to do better in all aspects of their life, they have better relationships and start doing better at work. It's great to be the catalyst for positive change in my clients life. If you are also in the financing industry or a client wanting to understand how financing works, please read on. This site is an exploration of how we decide who to lend to and how much we can lend them.

Helping people reach their goals

Questions To Ask Before Hiring a Debt Collector

Monica Ryan

If you're a creditor, trying to pry money owed to you by a client or customer can be frustrating, especially if the debtor has changed address or gone on the run. That's why you may want to consider hiring a debt collection agency that employs methods such as direct contact, threat of litigation and negotiation to get you the money you are owed. But before you hire one of these professionals, here are some questions to ask them to ensure that you are getting the most bang for your buck.

  1. Do You Have Errors and Omissions Insurance? --Errors and Omissions (E&O) insurance is a commercial liability policy that protects a business from lawsuits brought about through charges of negligence or failing to perform professional duties. It also covers businesses against suits brought about due to libel or slander, and will pay for defense costs associated with these types of lawsuits. You must ask a debt collector about E&O insurance, so that if the collector uses tactics that result in a lawsuit from your debtor, you will not be named or have to pay for defending that lawsuit because you hired the debt collection agency.
  1. What Type of Fee Structure Do You Offer? -- Some debt collection agencies will offer you a flat fee, which you pay regardless of how much debt the agency can recover. Other agencies proceed on a contingency basis, in which a percentage is charged based on the total amount of money that is recovered from your debtor. In many cases, you won't pay anything at all if the debt collection agency can't recover any of the debt, so that may be the model you prefer, although with large debts, some agencies will only offer a flat fee.
  1. Do You Have Skip Tracing Services? -- Skip tracing is ideal when your debtor has left his existing address and is on the run without leaving an address after departing his last residence. Broken down into its two words, 'skip' is an American slang word for people who leave their residence without notice, and 'trace' is the process by which a debt collector or bounty hunter tracks down the person who has fled. Skip tracing is accomplished through several methods, including analyzing financial accounts to determine if a cash machine or bank transaction was recently made and where it was made, as well as examining credit reports, tax information, public records, courthouse records, air travel records and driver's license applications.

Debt collection agencies don't perform magic, but they do have resources that can help you recover at least a portion of the money that is owed to you. For more information, contact a local company like National Collections