How does an agency initiate contact with the debtor?
The collector begins the process with a standard letter to the debtor detailing the situation and the amount owed. The letter explains that the debtor is late, how much money is owed, and how the debt can be settled quickly and problem-free. From there, the debtor must respond in order to work out a payment arrangement or dispute the amount owed. If the collection agency is unsuccessful, they can send the matter over to a court to take further action. If the collector and debtor reach an agreement, the collection agency must provide the debtor with another written letter that explains what the settlement amount is and the payment terms. This letter also serves a dual purpose – it proves how much your business gets and protects the debtor with an official receipt that the debt was paid.
