The bad debt is a financial burden that many people or organizations face in form of unpaid invoices, loans, or stagnant accounts. Bad debt accounts can be defined as debts that are considered as uncollectible due to the individual or companies that have taken the loan are due to pay the amount are denying to pay it back to the lender. Many lenders for this reason believe that they need to let go of this money and if there is too many of these pile up, it can lead to severe financial losses and even bankruptcy. The lenders who are inexperienced or not fully knowledgeable about the debt recovery process can also unknowingly infringe upon the rights of the debtor. To avoid these circumstances, the best way is to commission a professional debt recovery agency to work on your behalf.
A loan recovery agency is a professional company which specializes in the recovery of loans that are generally considered difficult or even at times impossible to recover. The recovery agency contacts the party that owes the debt, and requests for the debt to be repaid and tries to negotiate for a repayment agreement. Although it sounds simple it is many times the most difficult step. The debtor may go away for a while and be away from their hometown for extended periods of time. The recovery agency may use “skip tracing” and use databases to pinpoint the location of the debtor. Most of the reputable recovery agencies work within the Fair Debt Collection Practices Act (FDCPA) which is a consumer protection regulation governing the process of debt recovery. Some of the premium recovery agencies such as Atlantic Recovery Solutions ensure this through getting every single team member successfully undergo the FDCPA examination.
If the debtor is not available for a long time, the Atlantic Recovery Solutions contacts other points of contact to get some more leads about the current location of the debtor. Once the recovery agency has successfully contacted the borrower, they try to find the mutually agreeable way to ensure that the majority of Bad Debt amount is recovered. This may involve them offering a small discount to the borrower or to set up a repayment schedule so that it is easy for the repayment to carry on. If there is no agreeable outcome to the negotiations, they can proceed by sending demand notes and then even start the legal procedures. For the recovery agency such as Atlantic Recovery Solutions, law comes first and their actions are completely aligned with FDCPA deadlines so that it can’t be challenged in the court. They go ahead with all possible steps to ensure that each Bad Debt has a chance of recovery.