If there is one industry that seriously gets a bad rep then it is that of collections companies like the. Over the years these businesses, which are perfectly legal and legitimate have been associated with loan sharks and other shady characters, which could not be further from the truth. We caught up with the team at the Brennan & Clark agency, to find out what some of the myths are around the job that these guys and girls do each day, and some of them are pretty wild.
There To Punish
When someone who is in debt receives a call from this kind of company they immediately assume that they are being punished for not repaying the debt to the bank or whichever lender they have borrowed from. The reality however is that these companies want the money back just as much as people want their debt gone, and they are actually willing to work with them to support them. This is not about punishment it is about finding the middle ground and helping the person who owes the money to pay it back.
If someone has borrowed money from a company in order to buy a car and then they renege on paying that money back, it is very possible that they could lose the car because of the fact that this is what the money was borrowed for. The suggestion that these companies will storm into your home and take your possessions, however, this is not the case at all and they can only do anything of that set if a judge grants it. Prior to even going before a judge, however, these companies will try and reach an amicable agreement with the person who owes the money, to make sure that things are settled with ease and without fuss.
Collection agencies are not in the business of lending money, they are in the business of recouping money. This is another common mistake that people make. The way in which these businesses actually make money is through the purchase of debts at low cost. For example, they will undercut the overall debt amount when they buy a bad debt off the bank. This happens for two reasons, firstly banks are big enough to absorb losses and they prefer to have some money coming in for a bad debt than nothing, and secondly, the debt is a bad one and that reduces the value.
Ultimately it is in everyone’s best interests to work with these types of companies. Because of the fact that they have picked up the debt for lower-cost, they are able to pass on some of that saving to the person who is in debt, which can help them to get out of debt much quicker. There is no point ignoring these companies because they are used to that sort of behavior and they know what process to follow to take legal action.
Boris Dzhingarov graduated UNWE with a major in marketing. He is the founder of ESBO ltd a brand mentioning company. He is also passionate about meditation and healthy living. You can find articles on such topics at his spiritual blog Dzhingarov.com.