More Companies are looking to Collect on Consumer Debt during Coronavirus Pandemic

Budgets have been stretched thin and purse strings kept tightly-wound. The era of the coronavirus has brought about drastic changes to so many norms of daily life. The economic impact of the virus is far-reaching and for those with outstanding bills to collect, it has added another layer of stress. Consumer collection agencies are well-aware of what companies are currently facing. Past-due accounts, where much-needed funds are sitting uncollected, could spell disaster for any business with liquidity issues. This is why collecting consumer debt now, instead of waiting for your customer to pay on their own terms, is so crucial. We certainly don’t know when this crisis will be over, but we do know that collection services can give your company the injection of cash you need to make it through this difficult time.

Recent news reports show that bills accumulated over the early months of 2020 are coming due. The Portland Press Herald reports that “trillions of dollars of government relief money” and “deferred payments on mortgages and consumer loans” are keeping millions of American households afloat. These measurements to prevent additional pain will not last forever and the article advises borrowers to “communicate with lenders and creditors. Confirm any agreement with a dated copy in writing, as a way to document what the parties agreed on, in case there’s a dispute in the future.” Communication is one part of the puzzle, but companies trying to collect funds are often met with silence from their debtors. That’s when it’s time to call in credit card collections experts at HF Holdings, Inc.

Companies have the right to collect and deferrals will only be acceptable for so long.The Fair Debt Collection Practices Act (FDCPA) exists to guide consumer collection management companies so that all efforts are legal and effective. Within these boundaries are techniques like skip-tracing, which allows consumer debt collection firms to obtain contact and asset information. Some individuals and business owners will try to avoid your emails, calls and other outreach efforts. With credit score-affecting measures from HF Holdings, Inc., it will behoove your debtors to repay you as soon as possible. Legal action is also on the table, but that decision is always left to clients. Consider credit card collections companies as an additional part of your business that takes care of financial matters. Now more than ever before, having such experts on hand during the current economic climate will help your company solve re-payment problems while keeping valuable business relationships intact.