Debt Collection Software

What Makes A Good Debt Collection?

Debt collection agencies (DCA) collect outstanding debts owed by individuals and businesses. DCA companies specialize in collecting money that was once owed by debtors, such as customers who failed to pay bills or suppliers who didn’t deliver products.

There are two main ways that DCAs operate: through litigation (legal action), and non-litigation (non-legal recourse). Litigation involves filing lawsuits in court against delinquent debtors, while non-litigation means pursuing alternative options, such as negotiations or payment plans.

The process of collecting overdue accounts varies depending on whether a DCA uses litigation or non-litigation methods. In general, however, debt collectors must meet certain requirements before being allowed to pursue legal action. For example, a debt collector must prove that s/he has tried to contact a debtor for several days via telephone calls and letters; that the debtor owes some amount of money; that the debtor hasn’t responded to the debt collector’s requests; and that the creditor can sue in court.

Non-litigation debt collection typically involves sending out written notices to past due debtors. These letters inform the debtor of the amount owed and the consequences of paying late. According to the Federal Trade Commission (FTC), these notices should contain information regarding the following:

• The amount of money the debtor owes

• The deadline for making payments

• The rights and remedies available to the debtor

• That failure to pay could result in legal action

If the debtor fails to respond within 30 days, the creditor can begin legal proceedings. Although the FTC doesn’t require that creditors provide any specific details about the lawsuit they file, it does recommend that they include the following information:

• The name of the debtor

• The date the suit was filed

What Is Debt Collection Software Debt collection software helps companies collect money owed to them through legal means. It provides automated email alerts when debtors fail to pay back what they owe.