 |
|
The world of finance is constantly changing.
The team at Debt-Check wants to help you stay abreast of those
changes.
We invite you to visit the "Fact File"
from time to time for updates and new developments in our
industry.
If you have information that you feel would be of
help to visitors to the Fact File, please click here to send an email.
- CONSUMER
CORNER
- What
to do if contacted by a collection agency.
- MERCHANTS
CORNER
- Tips for
accepting checks
Tips for
handling accounts receivable
Check Facts
Debt Facts
CONSUMERS' CORNER
What to do if contacted by a collection agency:
Being contacted by a collection agency can be a disheartening event. For some it is embarrassing, and frustrating. Nevertheless, it is in your best interest to confront the situation. If you owe the debt the collection agency is contacting you about, consider now, as the time to pay. Even if you have to make a mutually agreed payment plan with the agency, this is far better than hiding from the situation. Most collection agencies report bad debt to debtor's credit files. This is usually not done until the debt has been with the agency for a minimum of 30 days. However, once reported to your credit file, it will most likely remain there for a period of approximately 7 years. Most people do not realize how long 7 years is, and the potential problems that having a Collection Account on their credit file may cause. Making and keeping payment arrangements with a collection agency will actually help you. You will avoid continuous calls and letters from the agency, avoid possible garnishment proceedings (depending on the type of debt you owe), and most of all, you'll feel better about yourself. You're paying for something you know you owe that has been a burden for you for some time. Most creditors do not charge interest or late fees for delinquent accounts. Consider yourself lucky until now. You've not paid the debt until now with no additional charges.In most cases, you can now make reasonable payment arrangements that can temporarily fit into your budget. DO THE RIGHT THING!!
(top)
MERCHANTS' CORNER
Tips for
accepting checks
* Make certain the Name, Address, and Phone Number are pre-printed on the check. Also quickly note the phone number and other numbers to ensure they correspond.
* 90 percent of returned checks are numbered under 500. Low check
numbers can therefore, be a warning sign. Also for personal
checks, make certain the last four numbers on the bottom of the
check match the check number of the check in upper right corner.
* Always verify identity by comparing the driver's license or
state issued ID to the name on the check and the photo to the
check writer. Match the signature on the check with that on the
ID.
* Do not accept two or three party checks. The more people
involved, the more opportunity for fraud.
* Except for government checks, all checks should be perforated
along one edge of the check.
* Form a check acceptance policy and stick to it. This may prevent
potential liability. In addition, master fraudulent check writers
are excellent at causing commotion, confusion and a disturbance in
order to cause a clerk to forget the importance of following the
check acceptance policies.
* Use a Check Service company like Debt-Check. Utilizing a
database for instance, in most cases, pays for itself time and
again.
Additionally, programs like our Check Guarantee can take the
guesswork our of accepting a check. If the check bounces, we cover
the check for you.
(top)
Tips for
handling
Accounts Receivables
* Have a set account aging policy in place, and stick to it. It is
very easy to procrastinate the duties involved with aging Accounts
Receivables. The further you get behind in performing the aging
process, the older an account gets without the proper attention,
and statistically, the harder the account becomes to collect.
* When accepting an account application or patient information
sheet, the more information you gather regarding the debtor the
better. One of the most common reasons for an account to have to
go to a collection agency is not knowing where the debtor is
because of a disconnected phone number and or returned mail.
Likewise, one of the greatest reasons for a collection agency's
failure to collect a debt is not being able to contact the debtor
to collect the debt. MORE INFORMATION IS BETTER!!
* Accept credit and debit cards and checks. You must be as
flexible as possible when handling Accounts Receivables. Offer any
kind of payment method you possibly can. Eliminate excuses where
you can. Being able to accept credit/debit cards is one way to
eliminate excuses and get your money now. If you have found
accepting credit cards is too expensive for you, call Debt-Check.
We refer business to a nationally known credit card company that
doesn't charge: Transaction fees, Statement fees, and has no
monthly minimum. If you have no credit card charges during a
month, you owe nothing! We have yet to find a credit card
processor that will match this program.
* In your set account aging process, include a final step of
referring 120 day and older accounts to a collection agency like
Debt-Check Recovery Systems. A collection agency can generate lost
money for your organization. In most cases, collection agencies
will not charge you until they've actually collected money for
you. Most people agree: Getting 75% of something is better than
100% of nothing.
(top)
Check Facts
* Checks account for 1/3 or all retail spending in the United States,
second only to cash.
* The American Collector's Association projected 85 Billion Checks were
processed during the year 2000.......731 million bounced.
* According the American Banker's Association (ABA), fraudulent checks
have doubled in the past two years.
* The ABA also reports actual check fraud to be approximately $679 million
with $2.2 billion in attempted fraud.
* Nearly two million bad consumer checks were written each day, totaling
$55.8 million per day
(top)
Debt Facts
* In 1999, consumer credit card debt equaled $595.6 billion (Collections
& Credit Risk, July 2000). The average amount of credit card debt
carried over by households that do not pay off their balance each month
rose to $7,564 in 1999, up 5 percent from 1998 (CardWeb.com).
*13 percent of families in the U.S. have credit card debt that exceeds 40
percent of their income (www.collectionindustry.com, Household Debt Grows
Precarious As Rates Increase, May 15, 2000).
* According to a study by the American Savings Education Council (ASEC),
55 percent of college students had a credit card in 1999, and 28 percent
of those students do not pay off their balance each month.
* In 1999 approximately $216 billion in bad debt was placed for collection
with professional, third-party debt collection agencies, and of that
figure approximately $30.4 billion was recovered (Commercial Law League).
(top)
|
