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View all posts inBanks and Credit Grantors

Banks and Credit Grantors

A credit grantor is any individual or business that extends credit to customers. The credit can be for other businesses or consumers and can come in many forms, such as closed-end loans (like auto loans, mortgages, and student loans), revolving loans (like credit cards or certain home equity loans), or a hybrid of the two. Some credit is backed by property or assets. In the U.S., the primary credit grantors are large commercial banks and credit unions. But credit is also extended by small businesses, governments, and other organizations.

View all posts inAuto Finance Receivables

Auto Finance Receivables

Auto loans are the most common secured debt in the U.S. If a debtor defaults on an auto loan, the creditor can typically repossess the asset – the car – securing the loan. But if the asset is in a state of disrepair or otherwise diminished in value, the creditor cannot recoup the total balance owed by selling the car. So a deficiency balance is due from the debtor, with the balance becoming a receivable on the creditor’s books.

View all posts inCredit Grantors

Credit Grantors

A credit grantor is any individual or business that extends credit to customers. The credit can be for other businesses or consumers and can come in many forms, such as closed-end loans (like auto loans, mortgages, and student loans), revolving loans (like credit cards or certain home equity loans), or a hybrid of the two. Some credit is backed by property or assets. In the U.S., the primary credit grantors are large commercial banks and credit unions. But credit is also extended by small businesses, governments, and other organizations.

View all posts inBPO & CRM

BPO & CRM

Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Today, BPO typically refers to the outsourcing of “back office” functions such as software or systems coding, billing, payment processing, debt collection, customer relationship management, technical support, and even accounting or finance functions.

View all posts inBPO

BPO

Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Today, BPO typically refers to the outsourcing of “back office” functions such as software or systems coding, billing, payment processing, debt collection, customer relationship management, technical support, and even accounting or finance functions.

View all posts inCRM

CRM

Customer relationship management (CRM) is a strategy for managing a company’s interactions with customers, clients and sales prospects. One of the most commonly-implemented (and utilized) strategies involves call center agents taking inbound calls from customers. Many large financial institutions are blending their internal or first-party collection operations with their CRM call center functions to try a more customer-oriented approach to debt recovery.

View all posts inCollection Jobs News

Collection Jobs News

Despite rough operating conditions due to the current global economic downturn, the ARM industry has been steadily expanding for a variety of reasons. Check here for the latest news on ARM companies expanding.

View all posts inAccounts Receivable Jobs

Accounts Receivable Jobs

Among types of accounts receivable jobs are accounts receivable analyst, accounts receivable consultant, accounts receivable manager, bookkeeper, billing manager, collection agent, collection supervisor, credit manager, recovery manager and other accounting and managerial positions that have some responsibility for a firm’s accounts receivables. To view a current listing of accounts receivable management and debt collection jobs, please visit our Jobs section.

View all posts inCollection jobs

Collection jobs

Among types of debt collection jobs are debt collector, collection manager, collection supervisor, skip tracer, director of collections, director of call center operations, compliance manager, training manager, collection team leader, and other accounting, sales and managerial positions that have some responsibility for a firm’s debt collection operations. To view a current listing of accounts receivable management and debt collection jobs, please visit our Jobs section.

View all posts inCollection Law Firm News

Collection Law Firm News

Debt collection law firms, also known as creditor’s rights law firms, focus on the collection of debt through the court system. While traditional collection agencies are not authorized to file lawsuits against debtors, collection attorneys specialize in taking debt cases to court to try to obtain court-ordered judgments against debtors. In addition to teams of legal professionals, many collection law firms have extensive collection operations that conduct more traditional debt recovery activity.

View all posts inCollection Law Firms

Collection Law Firms

Debt collection law firms, also known as creditor’s rights law firms, focus on the collection of debt through the court system. While traditional collection agencies are not authorized to file lawsuits against debtors, collection attorneys specialize in taking debt cases to court to try to obtain court-ordered judgments against debtors. In addition to teams of legal professionals, many collection law firms have extensive collection operations that conduct more traditional debt recovery activity.

View all posts inCollection Laws & Regulations

Collection Laws & Regulations

Debt collectors are regulated by the FTC on the federal level. At the state level, attorneys general are typically responsible for enforcing state and federal laws. A few local governments also separately regulate debt collectors. The laws that govern the ARM industry are civil, meaning that liability is almost always monetary. So a state’s attorney general will not file criminal charges against a debt collector accused of violating the law, rather, he/she will sue for damages. Collection laws include federal and state statutes that govern the proper operation of companies and personnel that work in the debt collection industry. The most comprehensive collection law is the Fair Debt Collection Practices Act (FDCPA). Other federal laws that collectors must follow include the Fair Credit Reporting Act (FCRA), the Telephone Consumer Protection Act (TCPA) and the data security requirements of the Gramm–Leach–Bliley Act (GLBA).

View all posts inCollection Laws and Regulations

Collection Laws and Regulations

Debt collectors are regulated by the FTC on the federal level. At the state level, attorneys general are typically responsible for enforcing state and federal laws. A few local governments also separately regulate debt collectors. The laws that govern the ARM industry are civil, meaning that liability is almost always monetary. So a state’s attorney general will not file criminal charges against a debt collector accused of violating the law, rather, he/she will sue for damages. Collection laws include federal and state statutes that govern the proper operation of companies and personnel that work in the debt collection industry. The most comprehensive collection law is the Fair Debt Collection Practices Act (FDCPA). Other federal laws that collectors must follow include the Fair Credit Reporting Act (FCRA), the Telephone Consumer Protection Act (TCPA) and the data security requirements of the Gramm–Leach–Bliley Act (GLBA).

View all posts inDebt Statute of Limitations

Debt Statute of Limitations

The debt statute of limitations is the legal time limit a party has to collect a debt through the court system. After that time a creditor or third party, such as a debt collection law firm, may not sue to enforce the credit agreement. Collecting using traditional methods such as calling or lettering is still allowed. The statute of limitations varies from state to state and by type of debt, and is typically between three and 10 years (see map below)

View all posts inFair Credit Reporting Act (FCRA)

Fair Credit Reporting Act (FCRA)

Originally passed in 1970, The Fair Credit Reporting Act (FCRA) is a U.S. federal law that regulates the collection, dissemination, and use of consumer credit information. Along with the Fair Debt Collection Practices Act (FDCPA), it forms the base of consumer credit rights in the United States. The FCRA is enforced by the FTC. Information furnishers – such as creditors, collection agencies, and debt buyers – can supply information to a consumer’s credit report only if they 1) supply complete and accurate information, 2) have procedures in place to investigate disputes from consumers, and 3) inform a consumer if negative information is to be placed on their credit report.

View all posts inFDCPA

FDCPA

The Fair Debt Collection Practices Act (FDCPA) was enacted in 1977 to protect consumers from abusive, unfair, and deceptive practices by third-party debt collectors. The law details when and how a collector may contact a debtor. The government enforcer of the law has historically been the Federal Trade Commission (FTC), but some regulatory duties may be shared with the Bureau of Consumer Financial Protection housed within the Federal Reserve, created in 2010. The FDCPA is a strict civil liability law, which means that a consumer need not prove actual damages in order to claim statutory damages of up to $1,000 per violation plus reasonable attorney fees. It is commonly believed that the FDCPA will be amended and/or updated in the 112th Congress (2011-2012). The complete Fair Debt Collection Practices Act (PDF, 326 KB)

View all posts inTCPA

TCPA

The Telephone Consumer Protection Act of 1991 (TCPA) is the primary law in the U.S. governing the conduct of telemarketers. Its primary regulator is the Federal Communications Commission (FCC). The TCPA restricts the use of dialers, prerecorded voice messages, SMS text messages received by cell phones, and the use of fax machines. As such, debt collectors often find themselves restricted in the communication technology they can use, especially when the technology is not explicitly mentioned in the law. For example, until the FCC issued a declaratory ruling in 2008, the ARM industry was tacitly restricted from using autodialer technology to call mobile phones. Similarly, the use of text messaging is currently a legal gray area for debt collectors.

View all posts inCollection Technologies

Collection Technologies

The accounts receivable management industry relies heavily on technology to streamline processes and make operations more efficient. From complex communication technology like predictive dialers to cutting edge scoring and analytics, debt collection professionals use a host of progressive software and hardware solutions. Integration has become very important with collection technologies. Many vendors are partnering with providers of different services so that their technology will “talk” to each other. For example, collection software providers are now sure to reach out to dialer vendors, makers of analytics suites, skip tracing providers and letter shops so that all services can be used in a single interface.

View all posts inCollection Software

Collection Software

Debt collection software is the engine that runs most traditional collection agencies. A collection software suite will allow a call center operator to route the correct accounts to agents, integrate with dialer software to make the calls, and track the effectiveness of any call campaign. All debtor contact information is updated through the collection software interface and most solutions are integrated with other services like skip tracing solutions and mailing services. Watch this video to learn about DAKCS' solutions-based recovery software.

View all posts inCollection Technology

Collection Technology

The accounts receivable management industry relies heavily on technology to streamline processes and make operations more efficient. From complex communication technology like predictive dialers to cutting edge scoring and analytics, debt collection professionals use a host of progressive software and hardware solutions. Integration has become very important with collection technologies. Many vendors are partnering with providers of different services so that their technology will “talk” to each other. For example, collection software providers are now sure to reach out to dialer vendors, makers of analytics suites, skip tracing providers and letter shops so that all services can be used in a single interface.

View all posts inData Security

Data Security

With identity theft a widespread issue in the financial services industry, banks and ARM companies are under increased pressure to ensure consumers’ sensitive identification, contact, and financial information is kept safe. In fact, a number of recent state and federal laws and regulations codify certain requirements for handling financial data. Firms in the ARM industry must adhere to a host of standards, including the Payment Card Industry Data Security Standard (PCI DSS), the financial privacy and safeguards rules in the Gramm–Leach–Bliley Act (GLBA), the FTC’s Red Flags Rule for identity theft, information security standard ISO 27002, HIPAA and the HITECH Act for the healthcare sector, and the Federal Information Security Management Act of 2002 (FISMA) for those collecting on government contracts. Auditing standard SAS 70 is also required for many in the financial services industry that use outside vendors such as debt collection agencies.

View all posts inDialers

Dialers

A dialer is a computerized system that automatically dials batches of telephone numbers for connection to agents in a call center. The dialer, or autodialer, removes the need for each agent to manually dial a number. A predictive dialer goes a step further and dials numbers based on the availability of a pool of agents in a center and the likelihood of a called party answering. ARM companies make heavy use of dialer technology for more efficient calling operations. Most dialers in an ARM setting are integrated with collection software and other collection technologies.

View all posts inMail Services

Mail Services

Debt collection calls certainly get most of the attention, but the traditional collection letter is still an integral part of the ARM process. Millions upon millions are mailed each year, some required by law. Mail services – or letter shops – help collection agencies manage, produce, and send collection – or dunning – letters. Many have automated data exchanges that integrate with collection software.

View all posts inPayment Systems

Payment Systems

A payment system is an automated set of processes (usually done with computers) for accepting cash-substitutes as money. Since the rise of credit and debit cards and the Internet, most businesses in the U.S. rely on some type of payment system. In addition to the traditional credit card processing services, payment systems can include electronic checks, EFT, mobile payments, and technologies specific to the Internet like digital wallets, e-cash and PayPal.

View all posts inSkip Tracing

Skip Tracing

Skip tracing defines the techniques and products used to locate people. In the ARM context, debt collectors are trying to find debtors that are not reachable using contact information on hand. Most ARM companies use the services of skip tracing vendors who furnish access to massive databases of consumer contact information mined from public records, credit reports, and many other sources.

View all posts inCommercial & B2B Receivables

Commercial & B2B Receivables

A commercial receivable arises when a business – from as small as a sole proprietorship to as large as a multi-national corporation – takes out a loan. If the loan goes into default, the commercial debt collection process begins. Commercial and business loans come from a variety of sources and can be secured and unsecured, depending on the purpose of the loan. There are also several government agencies – like the Small Business Administration – that back or guarantee certain types of loans.

View all posts inCommercial Debt Collection

Commercial Debt Collection

Commercial debt collection is the practice of targeting businesses for debt repayment as opposed to consumers. While consumer debt collection is much more prominent on a volume basis, the large balances often associated with commercial receivables has fostered a robust sector in the ARM industry.

View all posts inCommercial Receivables

Commercial Receivables

A commercial receivable arises when a business – from as small as a sole proprietorship to as large as a multi-national corporation – takes out a loan. If the loan goes into default, the commercial debt collection process begins. Commercial and business loans come from a variety of sources and can be secured and unsecured, depending on the purpose of the loan. There are also several government agencies – like the Small Business Administration – that back or guarantee certain types of loans.

View all posts inCredit Card Accounts Receivable

Credit Card Accounts Receivable

A credit card receivable is money owed to a bank or issuer on the outstanding balance in a credit card account. Because the borrower is contractually obligated to pay the balance, the creditor expects this amount to be repaid. If a borrower does not repay the balance, it is often charged off as a loss. Since credit card usage is so widespread, and account balances can soar quite high, credit card receivables form the backbone of many financial services functions, such as asset-backed securities, debt collection, and debt buying. For more information on credit cards and the role they play in the ARM industry, please see our special content section, The Credit Card Issue.

View all posts inCharge-off

Charge-off

A charge-off (or chargeoff, charge off) is the declaration by a creditor that a debt, typically a credit card account, is unlikely to be collected. This occurs when a consumer becomes severely delinquent on a debt. Traditionally, creditors will charge off an account when it has been delinquent for 180 days. After an account is charged off, a creditor may still pursue payment by outsourcing it to a third party debt collection agency, selling the debt to a debt purchaser, or forwarding the account to an attorney to consider legal action. If the activity results in a recovered amount, it is added back to the creditor’s books. As such, most credit grantors report a "net charge-off" figure, which factors in recoveries after charge off.

View all posts inCredit Card Receivables

Credit Card Receivables

A credit card receivable is money owed to a bank or issuer on the outstanding balance in a credit card account. Because the borrower is contractually obligated to pay the balance, the creditor expects this amount to be repaid. If a borrower does not repay the balance, it is often charged off as a loss. Since credit card usage is so widespread, and account balances can soar quite high, credit card receivables form the backbone of many financial services functions, such as asset-backed securities, debt collection, and debt buying. For more information on credit cards and the role they play in the ARM industry, please see our special content section, The Credit Card Issue.

View all posts inDebt Buying Topics

Debt Buying Topics

A debt buyer is a firm that purchases debt from another company, usually a creditor or bank, at a deeply discounted rate. The debt purchaser then attempts to collect the debt through its own operations or through the use of a third-party debt collection agency. Some debt buyers may sell all or part of the debt to another party at a profit. Most debt buyers are small and privately held, though there is a handful of publicly traded debt buying companies. Recent changes in law and legal rulings have seen the debt buying industry regulated like collection agencies, or servicers of debt, rather than creditors, or owners of the debt. Debt buyers must adhere to the FDCPA.

View all posts inDebt Buying

Debt Buying

A debt buyer is a firm that purchases debt from another company, usually a creditor or bank, at a deeply discounted rate. The debt purchaser then attempts to collect the debt through its own operations or through the use of a third-party debt collection agency. Some debt buyers may sell all or part of the debt to another party at a profit. Most debt buyers are small and privately held, though there is a handful of publicly traded debt buying companies. Recent changes in law and legal rulings have seen the debt buying industry regulated like collection agencies, or servicers of debt, rather than creditors, or owners of the debt. Debt buyers must adhere to the FDCPA.

View all posts inDebt Collection News

Debt Collection News

Debt collection refers to the work done to recover balances from credit accounts that are past due. Most commonly, debt collection specifically references third party debt collectors whose clients include banks, credit card issuers and other credit grantors, debt buyers, governments, and any organization that extends credit or owns an account where a balance is due. Collection methods traditionally include phone calls from call center agents, e-mails, and letters, and increasingly, SMS text. If an account remains in arrears after these efforts, the collection agency may contract with a collection attorney to file suit to recover the debt, if the collection agency is not positioned to do so.

View all posts inAccounts Receivable Management

Accounts Receivable Management

Within a credit granting business, accounts receivable management (ARM) refers to policies and procedures for a company’s disposition of accounts receivable -- or money owed on credit accounts -- including measurements, aging, charge-offs, debt collection, and debt sales. ARM divisions increase the revenue of its parent company even though they are typically quite capital-intensive with state-of-the-art systems and extensive frontline staffing. Accounts receivable management (ARM) can also refer to the industry that aids credit grantors in recovering debt before or after charge-off. This can include first and third party debt collection agencies, collection law firms, and debt buyers.

View all posts inDebt Collection

Debt Collection

Debt collection refers to the work done to recover balances from credit accounts that are past due. Most commonly, debt collection specifically references third party debt collectors whose clients include banks, credit card issuers and other credit grantors, debt buyers, governments, and any organization that extends credit or owns an account where a balance is due. Collection methods traditionally include phone calls from call center agents, e-mails, and letters, and increasingly, SMS text. If an account remains in arrears after these efforts, the collection agency may contract with a collection attorney to file suit to recover the debt, if the collection agency is not positioned to do so.

View all posts inDebt Recovery

Debt Recovery

Debt recovery typically refers to internal efforts at creditors to collect outstanding debt, similar to accounts receivable management. Most of the collection effort is conducted prior to a debt being charged off. Debt recovery is also used interchangeably with "debt collection" in many countries, notably India and those in Asia and Africa.

View all posts inDeceased Debt

Deceased Debt

When a consumer passes away owing money, the debt is satisfied in the deceased debt collection or probate process. If the deceased leaves an estate that is valued above the debt, then creditors will typically be paid off. Secured debt is also usually satisfied. But the probate process can become very complicated based on where a consumer was living, where in the collection process certain accounts were at the time of death, and if debts exceed the value of the estate.

View all posts inMortgage Collections

Mortgage Collections

Since mortgages are the most secured of any loan type (a lender can foreclose on a house if the loan defaults), collection agencies generally don’t get much mortgage collection work. But there is one large exception: deficiency balances. If a lender approves the sale of a house for less than what is owed by the borrower, the difference is a deficiency balance. In the ongoing morass of the housing market, short sales are commonplace. Lenders will typically forgive deficiency balances. If they do not, that amount enters the ARM process and can find its way to debt collectors.

View all posts inEconomic News

Economic News

Since the economic downturn began in the U.S. in 2008, the fortunes of ARM companies have largely mirrored the broader business environment. Debt collection agencies are particularly susceptible to high unemployment, inflated consumer bankruptcies, and plummeting housing pricing. Combined with a general tightening of credit standards, the ARM industry is more tied to macroeconomic trends than ever before.

View all posts inBankruptcy

Bankruptcy

Bankruptcy is a legally declared inability by an individual, or business, to pay their creditors. The declaration is known as seeking bankruptcy protection (from creditors) or initiating a bankruptcy filing. Unsecured debts -- like credit card balances -- are typically in peril in bankruptcy filings. But recent changes to the U.S. bankruptcy code have seen more consumers forced to file Chapter 13, which requires a debt repayment plan, rather than Chapter 7, which effectively wipes out unsecured debt.

View all posts inThe Economy

The Economy

Since the economic downturn began in the U.S. in 2008, the fortunes of ARM companies have largely mirrored the broader business environment. Debt collection agencies are particularly susceptible to high unemployment, inflated consumer bankruptcies, and plummeting housing pricing. Combined with a general tightening of credit standards, the ARM industry is more tied to macroeconomic trends than ever before.

View all posts inGov't Receivables

Gov't Receivables

Governments of all sizes and locations are owed money. In the U.S. federal government, citizens and businesses typically owe taxes, fines and fees. Consumers can also owe on federally-backed student loans, while businesses can owe on development loans. Several branches of the U.S. government have robust ARM operations, including the IRS and the Department of Education. On the state and local level, debts to the government can be too many to enumerate. From court fines and fees to sales tax to late parking tickets. An overwhelming majority of U.S. states, and thousands of municipal governments, have used private debt collectors to help recover their debts.

View all posts inGovernment Receivables

Government Receivables

Governments of all sizes and locations are owed money. In the U.S. federal government, citizens and businesses typically owe taxes, fines and fees. Consumers can also owe on federally-backed student loans, while businesses can owe on development loans. Several branches of the U.S. government have robust ARM operations, including the IRS and the Department of Education. On the state and local level, debts to the government can be too many to enumerate. From court fines and fees to sales tax to late parking tickets. An overwhelming majority of U.S. states, and thousands of municipal governments, have used private debt collectors to help recover their debts.

View all posts inMunicipal Receivables

Municipal Receivables

Any money owed to a city, county or other local government is a municipal receivable. The money is usually owed from citizens for property tax, court fines and fees, parking tickets, and many other usage fees on the local level. Because balances are typically low, but volumes very high, municipal debt collection is considered a specialty sector in the ARM industry.

View all posts inMedical & Healthcare Receivables

Medical & Healthcare Receivables

Medical receivables are the amounts owed by third-party payers to healthcare providers. The party owing the money can be commercial insurance companies, HMOs, Medicare and Medicaid, or patients (if there is an outstanding balance after insurance or another payer has paid its portion). Medical receivables are usually payable 60 to 120 days after service is rendered, though some reimbursements lag further behind, creating cash flow issues for healthcare providers, who typically need to pay expenses in a shorter time frame.

View all posts inMedical Debt Collection

Medical Debt Collection

When medical receivables become aged, healthcare providers will enlist the help of the ARM industry to collect the debt. The medical, or healthcare, sector of the debt collection industry is robust, with specialty debt buyers, collection agencies and collection law firms providing service. A typical account usually involves a self-pay portion of treatment costs not covered by insurance or government programs which needs to be paid by the patient. Some medical offices also offer financing for their services and for certain elective procedures, loans which could go into default.

View all posts inMedical Receivables

Medical Receivables

Medical receivables are the amounts owed by third-party payers to healthcare providers. The party owing the money can be commercial insurance companies, HMOs, Medicare and Medicaid, or patients (if there is an outstanding balance after insurance or another payer has paid its portion). Medical receivables are usually payable 60 to 120 days after service is rendered, though some reimbursements lag further behind, creating cash flow issues for healthcare providers, who typically need to pay expenses in a shorter time frame.

View all posts inRevenue Cycle Management

Revenue Cycle Management

Revenue cycle management is a comprehensive term to describe the processes and systems in place at healthcare providers to collect revenue owed from patient services. This includes extensive billing and coding operations for insurance and government reimbursement, management of medical receivables, outreach to charity care payers, and the creation and management of a healthcare debt collection network.

View all posts inStudent Loan Collection News

Student Loan Collection News

Debt collectors work with universities, colleges and private lenders to collect student loans. For education loans backed by the federal government, the U.S. Department of Education has a clearly-defined collection program that uses private collection agencies. Recent changes in federal law will shift all previously federally backed loans to direct loans from the federal government, cutting private lenders out of the equation.

View all posts inDepartment of Education Collections

Department of Education Collections

The U.S. Department of Education currently has responsibility for all federally-backed student loans that go into default through its Federal Student Aid unit. In addition to using extensive internal resources to rehabilitate some borrowers, FSA contracts with 22 private collection agencies to help recover the debt. FSA updates the performance of each collection agency in a comprehensive report every month.

View all posts inStudent Loan Collections

Student Loan Collections

Debt collectors work with universities, colleges and private lenders to collect student loans. For education loans backed by the federal government, the U.S. Department of Education has a clearly-defined collection program that uses private collection agencies. Recent changes in federal law will shift all previously federally backed loans to direct loans from the federal government, cutting private lenders out of the equation.

View all posts inTelecom & Utility Receivables

Telecom & Utility Receivables

The telecommunications and utility sector is one of the most robust and growing segments of the ARM industry. As more consumers add additional phone lines through more expensive mobile adoption, and telecom companies bundle services like cable and Internet access, telecom balances are growing even as volumes steadily increase. Likewise, as deregulation puts the operations of utilities increasingly in private hands, and as the population of the U.S. steadily grows, utility collections is expanding.

View all posts inTelecom Collections

Telecom Collections

The telecommunications sector is one of the most robust and growing segments of the ARM industry. As more consumers add additional phone lines through more expensive mobile adoption, and telecom companies bundle services like cable and Internet access, telecom balances are growing even as volumes steadily increase.

View all posts inTelecom Receivables

Telecom Receivables

The telecommunications sector is one of the most robust and growing segments of the ARM industry. As more consumers add additional phone lines through more expensive mobile adoption, and telecom companies bundle services like cable and Internet access, telecom balances are growing even as volumes steadily increase.

View all posts inUtility Collections

Utility Collections

Collection agencies often take on work from utility providers when their customers go severely delinquent on bills. It is a tricky sector since contact information is generally up-to-date, making contact easier, but cash to satisfy the debt is often lacking from the debtor (who could not afford to make basic utility payments).