We usually encounter the scenario where human instinct is to hide from the collection agencies. We tend to ignore their calls and texts whenever they want to contact us and ask for updates about the payment. With this, we fail to deal once they file a suit against us just because you are not following what is in the contract or any written agreement. This justifies that hiding from the creditors or the problem itself is the worst way to apply.
Honestly and legally speaking, it is recommended to have constant communication and interaction with the inkasso (Debt Collection) to prevent such problems. By doing so, you can assure that everything will be settled properly, even without involving lawsuits and other penalties. Treating your collection agency respectfully is the fastest way to resolve everything instead of hiding and ignoring the conflict.
The statements mentioned above support the fact that inkasso (Debt Collection) does not have the right to sue you. If you want to make it all go out of your way, settle it, and have good communication with the opposite party. As it is included in civil rights, no one can be jailed due to borrowed money. Taking advantage of this will only cause you more problems than some collection agency penalties.
In recent years, debt collection has constantly been growing and widespread, benefiting both the company and the consumer. People are drawing themselves into selling and trading debt from one company to another where profit and multiple benefits are attached. This is why the debt industry is becoming more popular as, along with the advent of technology, different credit platforms are also arising.
Over the last decades, the debt collection industry has been tremendously growing. Think of the changes that the debt purchasing industry faced, from the range of 10 billion dollars up to the 115 billion dollars that accumulated as years went by. This is living proof that it has been patronized since the late nineties, which carried it to its position on the market until this day.
More giant collectors tend to use strategies to maintain their company’s financial state depending on the type of borrower they get to encounter. Those debts that the original creditor considered no longer collectible are sold or assigned to a third-party debt collector. In this method, people can make their collections as easy as possible.
The party with whom the borrower receives the extension of the creditor or whom the debt is owed is typically managed by the original creditor. These include banks, mortgage companies, credit card companies, and others. Some departments and firms tend to have the power to manage specific kinds of credit, whether receivable or debit transactions.
The debts sold and transferred are compiled through portfolios or in bulk provided to third-party collection agencies about to receive the obligations. In this case, the debt collection agencies will attempt to gather all debts in their total amount borrowed from the original creditors. Given that there are debts that are considered impossible to be returned, it is then going to deal with by the third-party collectors, and the responsibility of collecting it will be transferred as well.
Even if the collection agencies will not attempt to sue the debtor as they believe they do not have that enough information and rights to do so. Due to this, no debtor will be jailed or sued, but the collectors can use strategies and aggressive tactics to threaten or scare the debtor to pay the debts.
You have the right not to be sued by any debt collection agencies, but you have to think that they will not care about customer service at all. They are not taking care of you to keep you as a customer, so there will be a possibility that they can exert force to make you pay for your debt. In this way, you do not have a choice but to pay for it or face blackmailing and penalties.