What is Consumer Debt Collection?
Ever since money was created, there have been signs of debt from money owed. The idea throughout this time period has not changed that much. If you borrow money from a entity and promise to payback the funds within a registered timeframe, you are eligible to payback the money. When you don’t pay that money back, you will have broken the contract you promised and will face stiff penalties that could really affect the future of your financial life.
In today’s world, debt collection laws are put in place to protect both parties of the borrowing process. Depending on whether you are a consumer or you are a business, the laws are changed. In this article, you will discover what both consumer debt collection and commercial debt collection are and how they are different.
Consumer Debt Collection
When a business entity loans money to a consumer and is in the practice of collecting the debt, this is known as consumer debt collection. In the United States, this type of debt collection is taken very seriously. If you find yourself a victim of suspicious activity involving a debt collection agency, give us a call and we can answer your debt collection questions.
With the consumer, each state has different debt collection laws. The Fair Debt Collection Practices Act ( FDCPA ) helps prevent the abusive powers and manipulation of wrongdoing debt collectors. This Act also is a support system for consumers to get real life examples of the legal side of debt collecting. When you try and collect money owed on your own, you can easily burn out with all the laws restrictions. The FDCPA Act allows you to get answers to your questions.
Commercial Debt Collection
When we talk about commercial debt collection, we also are talking about money transfer between two businesses. With this type of debt collection, the businesses are held to higher standards and are assumed to follow the business ethics laws in returning unpaid debt in a contracted manner. It’s important to note that the FDCPA doesn’t fall into the commercial debt collection category. The Debt Collection agency has to get creative when going after the commercial debt. They have to make sure that no relationships are broken, at the same time, taking a delicate approach to getting money that is owed back to the creditor.
Let the Experts Help With Collecting Your Debt
With the help of Rescue My Debt, you can make the necessary first steps in collecting your debt, whether its commercial or consumer. Both types of debts require precise wording and timing. There are many laws and restrictions that you must overcome while not making any entity upset. Call us to find out how we can start the debt collection process for you.