A letter from the collection agency, now what?
When an invoice is left unpaid, a creditor will often transfer his claim to a collection agency. This initiates a collection process in which communication with the collection agency is essential.
From the moment the claim has been handed over for collection, a solution must be found for the situation that has arisen together with the collection agency. As already indicated, in addition to paying the claim, communication is essential. Although it can be tempting to ignore collection letters and other attempts to contact a collection agency, this ultimately only works to the detriment of the debtor: after all, it is never advisable to turn a blind eye to a problem. Therefore, after receiving a collection letter, always contact the collection agency in order to prevent cost-increasing measures, such as starting legal proceedings and imposing an attachment.
Ensure open and transparent communication with the collection agency, if possible also substantiated with documents. This makes it clear to the collection agency that the agreed payment arrangement is the highest achievable. On the other hand, open and transparent communication ensures that no too high payment plan is agreed upon that it is already certain in advance that it cannot be met. Failure to comply with a payment arrangement often causes bad blood with a creditor and will often only lead to legal proceedings, with all the associated costs.
It is also advisable to document all correspondence. Nova Incasso has developed an online management environment for this, where the debtor can log in. By logging in, progress can be documented and tracked, so that communication is better. If the collection agency does not have an online management environment, it is still advisable to have all communication, such as a defense or a payment arrangement, in 'black and white'. This prevents further ambiguities.
If a collection letter is received, do not ignore it and talk to the collection agency. This can prevent further costs and ensure that the collection dispute is settled appropriately.
Ramon AB