The increase in loan portfolios of banking institutions leads to growth of bad borrowers of credit. In modern conditions banks often practiced transferring troubled debt to specialized agencies - collection agencies.
Mostly collectors are legal entities with a significant amount of overdue debt. Banks and consumer credit cooperatives of citizens, operators, Internet service providers, organizations of housing and communal complex of the insurance company.
The essence of the collection Agency is in the "pipeline" debt collection. It is best suited to service large volumes of similar debt. Most collectors can work without advance payment, so the Agency is interested in the constant acquisition of new portfolios of debt, which eliminates the interruption in the foreclosure process.
A separate sphere of activities of the specialized agencies to recover debts – factoring, leasing and investment companies. Here we are usually talking about a one-time recovery of large sums. She from the fields of activity of the collectors collecting debts between legal entities and individual entrepreneurs.
Gradually the public mind erased the image of the recoverer debt in the form of thugs with an overheated soldering iron. Collection agencies actively cooperate with the media in order to improve financial and legal literacy. Modern collector – a man or a woman in a suit with a law degree, owning a competent speech and persuasive skills.
The activities of collection agencies includes non-judicial and judicial stages, as well as support of enforcement proceedings. Extrajudicial stage, the Agency convince the debtor to repay the debt voluntarily. Tools such work with the debtor: phone conversations, correspondence, site visits (if necessary).
As a rule, for the recovery of debts from individuals in the area of credit out the main reasons of no return: people usually overestimate their financial ability to repay the debt, or he's drastically changed life circumstances. Also found outright fraud. Non-payment of debts of legal entities and individual entrepreneurs is typically associated with unexpected financial difficulties or poor payment discipline. In any case, recourse to a collection Agency can lead to a positive result and repayment of debt without recourse to the courts.