If you’ve ever been contacted by a debt collection agency, you might be wondering if they were legitimately able to collect the debt in question from you. Whether you find yourself in this situation currently or are looking to collect debt from outstanding invoices as a business owner, it’s important to learn about the debt validation requirements. At directroute.co.uk, we can support you with a wide range of debt collection issues and ensure you stay in a good financial position with our support. Let’s take a look at the requirements for debt collectors so that you are aware of what to expect in the future if you find yourself speaking to collectors.
Verification of the Debt
The first thing that anyone needs to keep in mind when it comes to debt collectors’ requirements is that you’ll need to verify that the debt you are being asked to pay is in fact yours. Unfortunately, you’ll find there are many scams in this industry, leaving unsuspecting individuals and business owners in very difficult financial situations. If you receive a bill from a debt collector, take the time to research the invoice and whether it’s really something you owe money for. There are lots of ways in which agencies and individuals can fake documents, thanks to the advancements in technology, but this leaves more people than ever in a difficult situation or paying debt they didn’t owe in the first place.
If you find out that the debt is yours, you then need to ensure you haven’t already paid this debt. When you are dealing with a debt recovery agency, you’ll want to check that you didn’t pay the company they are representing directly. This lack of communication often happens and may leave you paying twice if you don’t have proof of payment. The late payment of commercial debts is something that more companies than ever are now outsourcing to agencies. There are many benefits to companies doing this, and it can help them to overcome the commercial debt they are struggling with. However, this does mean you need to be more wary of who you are paying in the future.
Check the Collector Has Been Authorised to Take the Payment
After certifying that the debt you have been asked to pay is really yours, it’s time to take the investigation a step further and ensure that the agency you are working with is really authorised to take your payment. You wouldn’t want to pay hundreds or thousands of pounds to a company just to find out you should have paid it directly to the business that originally invoiced you. You are completely entitled to contact the original company and find out if they are working with this company to resolve their financial issues. If they say they aren’t, then it’s time to go back to the invoice and work with the company to find a way to settle your payment as soon as you can.
Time Sensitivity and Debt Collection
A big thing to keep in mind when it comes to debt collection is the time-sensitivity of invoices. Remember, you are entitled to wait until the end of the invoice deadline to make your payment. If you were told and the invoice states you have 90 days to settle your payment, don’t be made to feel pressured to do this before that date. While it can be a huge help to a company for you to make a payment ahead of time, there’s no obligation from your side to do so. A lot of people keep the money in their bank until the last minute so that they have their own financial security as a priority at all times.
Debt collection agencies should send you a written debt validation letter as well as speaking to you over the phone. If they refuse to do any of their communication in writing, this is a huge red flag for you. Make sure they send this over in a timely manner so that you are able to dispute the debt when needed. You need to get as much proof of the debt and check that the collection agency is real before proceeding any further.
By following these debt validation requirements, you can ensure that any payment you make is going to the correct company. If you are a business owner looking to collect debt, you’ll also want to make sure that the agency you are working with will follow these standards so as to avoid damaging your company’s reputation at all. Our team will be here to support anyone dealing with debt validation and collection at the current time. Contact us today to learn more about the services we offer or to discuss any questions you have about the information we’ve shared here today.
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