An Online Collection Agency Helps Both Creditors And DebtorsUnpaid debts are a nuisance for almost all creditors the world over. Most of them are preoccupied in their business activities and are short of resources to handle debt receivables. An online collection agency proves to be a God-sent problem-resolving solution for the creditors. This is because it takes the headache away from the creditors and allows them to concentrate on their businesses. Outsourcing the collection of debts to an online collection agency helps creditors to recover a substantial portion of debts. It is very convenient for the creditors and at the expense of a fixed or contingency fee, they get back most of their money from the debtors. The balance goes to the collection agency towards its fees for debt recovery services. An online collection agency collects debts from defaulters on behalf of creditors. The agency signs contracts with creditors for debt collection from loan borrowers. It maintains an online database of debtor and creditor accounts. It gets inputs about all details of debtors from creditors and feeds that into the debtor accounts. It also maintains the different creditor accounts based on the terms of the contract agreements signed with them. It then dispatches reminders to debtors to pay up the debts by the specified due date. These reminders are sent through e-mail and also via mail/courier. If need be it also makes telephone calls to debtors. During the calls, the collection agents talk very politely to debtors. The collectors inform the debtors the amount of debt taken by them. They also inform the debtors the repayment installment amount due and the date on which it is due. In case of default of installment payments, the collection agents inform the status of default to the debtors. They also inform them the grace period during which debtors need to make good the default with interest. The telephonic reminders have the desired effect on most debtors. The debtors also benefit from an online collection agency as they are reminded about the payments well before the due date. Most of these debtors, who are earnest about making payments, then take action accordingly. They use the facility of online transactions that the collection agency extends to debtor accounts to make direct payments into the respective creditor accounts. The creditors can all the time view the status of all debt payments due and those realized by accessing their accounts online. They can easily keep track of the services rendered by the collection agency in this manner. If no payments are realized by the agency, it does not get any fees. The online collection agency keeps a percentage of the payment realized by them on behalf of the creditors. Mostly, the agency fee ranges between 20% and 35% of the payment realized. |