Frequently Asked Questions.

What is a professional debt collection service and what do they do?

Third-party collection services collect on past-due accounts referred to them by various credit grantors—credit card issuers, banks, car dealers, retail stores, healthcare facilities—any business that extends credit or offers payment installment plans.The first thing a collection service must do is obtain the consumer's current address or phone number through a process called skip tracing. The collection office then sends the consumer a notice that allows him or her to dispute the validity of the debt and/or request verification of the debt. Once the notice is received, a collector may call or write to the consumer and ask for full payment of the debt. If payment in full is not possible, the collector helps the consumer make arrangements to solve the problem.

Is there a typical debtor?

No. People from all walks of life face financial problems. These problems can stem from poor money management and budgeting skills, the loss of a job, prolonged ill health or a multitude of other unforeseen circumstances

What should I do if I receive a collection notice in the mail?

First, stay calm. Just as consumers depend on an income to pay their living expenses, the people who sell goods or services on credit depend on your payment to meet their own expenses. If you have received a letter or a phone call, more than likely it has been several months since you have secured a payment for the mentioned account. The creditor has probably carried the account for several months. Second, work with the collection agency to resolve the problem before it gets worse.

I paid this bill in full. What do I do?

If you receive a notice of collection, and you have already paid this item in full, make a copy of the payment (whether it was by check or credit card, and either fax or mail both the collection agency and creditor a copy of this payment. You can send either a copy of the transaction reflected on your monthly bank account statement, or credit card statement. This will more than suffice as evidence of a payment made.