Lending money to people can at times be difficult even when we want to give a lending hand. There are several reasons why people get into debt, most of them may be honest and sincere and others just have poor money habits. Getting the money back is the major issue and when it gets challenging that is how debt collectors come in.
Debt collectors have a negative image in society, most are seen and compared to loan sharks. This is not the case as they act as middlemen between the lender and the borrower. They always find the best way to suit both parties, most agencies the goal is always to leave the relationship between the parties intact.
The whole process of debt collection can be tedious, legal debt collectors come in to make the process easy and quick. They come up with ways such as split payments, easy installments, and in some cases wavering the interest fees to fasten the process.
Debt collectors come with rules and laws that have been passed in court to facilitate the process. The Credit Collection Association of Singapore has laid down ground rules that govern and guide the behaviors of the collectors.
These guidelines assist the money borrowers and lenders to deal with the situation amicably.
As you begin the process of debt collection the first procedure is the startup consultation. Consultation means analyzing the case and understanding the current situation before coming up with a strategy to collect the money.
Your hired legal debt collector looks through the text messages involved when giving the debt, any agreements that were signed at this point by both parties are also scrutinized. In some cases, there are no agreements that were made or documents that were signed. In this case, the collector can refuse the case.
It is during the consultation that you discuss the base of your loan recovery case. It is also at this point that the collector check on the financial position of the borrower.
Debt collection does not have to go through court procedures, however, based on the situation those cases that require legal procedure should file necessary legal documents at this point and diligent research is done.
A letter of Demand is then issued to the borrower, this presents the intent of the lender and acts as a legal document to get the parties to negotiate on the loan payment concerns. The letter should indicate legal actions that can be taken if the other party fails to respond.
Once you are successful in getting a response from the borrower you can then negotiate and resolve the matter.
Some of the borrowers get stubborn and choose not to reply, if that’s your case you can proceed to file a claim with the court. A claim is also filed when there is no favorable response during the negotiation.
Debt collectors are beneficial to reach a common ground for both parties. Do you wish to recover your overdue loan payment today? Resolute debt recovery has got the best team that is well trained to ensure faster results with better negotiation terms. Contact them to begin the process.