A debt collector is a professional who is in charge of speaking with people about repaying debts. They work in the collections department of the company that is owed the money, or in a collection agency hired the company to recover the overdue funds, and are also known as bill, credit, or account collectors. Creditors are businesses that owe money, while debtors are individuals who owe money to these businesses.
The customer’s account is sent to a debt collector if the creditor is unable to collect payment from the debtor through normal billing procedures. In some cases, rather than having an in-house department to handle such debts, the creditor transfers the account to a separate, stand-alone company known as a collection agency, which employs debt collectors. In either case, the debt collector contacts the debtor phone or mail to learn about the reasons for non-payment. When a debtor disputes a bill or expresses dissatisfaction with the goods or services provided, the collector can refer the debtor to the creditor’s customer service department for resolution. However, if the bill is determined to be fair or valid, it is the collector’s responsibility to follow up with the debtor to ensure payment.
The debt collector can set up a payment plan if the debtor is willing to pay but is having financial difficulties and cannot pay the full amount owed. However, if the debtor continues to dispute the amount owed and refuses to pay, the collector can refer the case to an attorney for legal action. The debt collector can supervise the repossession of property if the unpaid bill is for merchandise such as a vehicle. In the event that the debtor is no longer at the address listed, the collector must search for him or her checking for forwarding addresses at the post office. Calling a former workplace and residential phone numbers to interview former coworkers and neighbors about the debtor’s whereabouts is also part of the tracing process.