When should you use a collection agency?

Once the account reaches the stage of being fully provided, the collections activity is designated as Recoveries. This is a Hard core delinquency stage wherein the collection efforts are of a more intense nature as compared to the earlier stages. The Hard Core Collector will try to trace the customer and ensure full settlement of outstanding. If the customer is unable to settle the outstanding, the collector will ensure that a settlement plan or discount strategy (as per the agreed guidelines) is offered to the customers. In case the customer does not agree to pay inspite of all these collections efforts then a legal case needs to be been filed against the customer . The collectors officer may also choose to assign the case to the collection agency for follow up. Once the account reaches the stage of being fully provided, the collections activity is designated as Recoveries. This is a Hard core delinquency stage wherein the collection efforts are of a more intense nature as compared to the earlier stages. The Hard Core Collector will try to trace the customer and ensure full settlement of outstanding. If the customer is unable to settle the outstanding, the collector will ensure that a settlement plan or discount strategy (as per the agreed guidelines) is offered to the customers. In case the customer does not agree to pay inspite of all these collections efforts then a legal case needs to be been filed against the customer . The collectors officer may also choose to assign the case to the collection agency for follow up.