National Credit Recovery Services in Ontario
Because you have the right to the money owed your company, get it back with a debt collection agency that provides nationwide credit recovery services in Ontario.
A debt collection agency is hired by companies to provide them national credit recovery service. Also known as nationwide debt recovery, national debt recovery is a process of collecting payments for overdue and delinquent debts that were locally issued within a country. The nationwide recovery service process is acted upon by debt collection agencies.
Debt Collection Process
Most debtors in Ontario fail to pay off their debts due to a number of reasons. This includes unanticipated expenses such as separation or divorce, job loss, closing down of their business, or underemployment.
Local Debt Recovery
When debts become delinquent, it is the start of the local debt recovery process. As the first party collectors, creditors or establishments can make their first move in recovering the amount of money owed by the debtor. They can utilize their internal debt management department which is tasked to collect payments from the debtor. Their own debt collection department can send collection letters or make collection calls with a tone and approach depending upon the client relationship as well as the relevance of the amount.
It is important to take into account that while the key for nationwide debt recovery is keeping constant communication with the debtor, consistently making phone calls or emails to them could be interpreted as harassment. Moreover, creditors need to be careful with their language when talking to debtors. Threatening debtors of legal action against them can trigger a criminal offence on the creditor. When the debtor agrees to pay his delinquent account and pays, the local debt recovery process ends.
National Debt Recovery
In cases where the debtor failed or refused to pay the debt, whether he was deliberately dodging it or he doesn’t have the means to pay for it, the national debt recovery process starts. The creditor has an option to seek help from a national debt recovery company, which is also known as a third-party collection agency. Most creditors and firms find getting professional help more beneficial especially if the debt amount is substantial.
Skip Tracing
If the creditor hires a third-party collection company, he has to send the debtor’s profile to the collection company. As soon as the debt collection company has the information, they would start tracking the debtor and start contacting them. The debt collector either calls people with bad debt or sends them a message or email to collect payments. If the debtor is uncontactable or has changed his phone number, the debt collector is legally allowed to call the debtor’s friends, families or co-workers to get the new phone number or address. In addition, debt recovery agencies have strategies and tools such as skip-tracing to locate the debtor.
Initial Contact With the Debtor
In most cases, the initial contact would be in the form of a letter which generally informs the debtor that his debt is now in the collection. The first contact is also a request for the debtor to pay his overdue debts.
Initial Phone Call
After 5 days of the initial contact, the debt collector is allowed to make phone calls to the debtor. When calling the debtor, the debt collector has to follow protocols such as not calling them at work if it isn’t allowed. They have also to refrain from calling the debtor at certain prohibited times.
Issuance of Proof of Debt
Once the debt collector has successfully contacted the debtor, he needs to send another letter containing information as to who they, the creditor that owns the original debt, the date that the delinquent account was transferred to the collection agency, and the amount of money that the debtor owes.
Sending of Pre-legal Notice
When the debtor denies ownership of the debt, the national credit recovery agency would find ways of proving that the overdue debt really belongs to the debtor. Furthermore, debt collectors would come up with a payment plan that would allow the debtor to settle his debt. A nationwide credit recovery agent may visit the debtor’s properties and may recommend that these properties be sold in order to pay back the creditor. If the debtor refused to pay, the national credit recovery company may file a pre-legal attempt to get the debtor to pay off the debt.
The Start of Legal Action
Creditors in Ontario and in other provinces in Canada have the right to take legal action against the debtor if he fails to fulfill his financial obligation. Hence, the pre-legal attempt would progress to legal action if the debtor would still refuse to pay. Nevertheless, the debt collection agency is required to notify the debtor by sending a notice of legal action at least 21 days prior to initiating legal action.
Judgment
Once legal action is initiated, the debtor is required to attend a court hearing. If it is proven that the debt in question is something that the debtor actually owes, the debtor will most likely be issued with a Judgment which legally binds him to pay it off. With a Judgment, the debt collection company can now garnish the debtor’s wages.
Why Firms Get Nationwide Debt Recovery Service
Substantial debts and even debts of small amounts when combined can make a huge impact on the company’s cash flow. Therefore, business firms are keen on monitoring their receivables. In fact, big enterprises have their own credit collection department to do the task. However, while they have a rock-solid credit recovery process, they still opt to hire a third-party collection agency. With their expertise, the debt collection process of a third-party debt collection company is more intensive, making it more effective. Furthermore, most of these agencies get paid based on the amount of money they have recovered from debtors, hence, they are more determined in collecting payment, resulting in a higher national credit recovery rate.
