A debt collection agency is a business that collects past unpaid dues from individuals or businesses. There are different types of collecting agencies that are currently operating in almost every country of the world such as first-party collection agencies, third-party collection agencies, and debt buyers. If you are representing a collection agency, you become so rigid that the debtor is telling you why he is not paying the dues. All the types are professional and tend to deliver quick collection services. The quick collection does not mean within a month, as this is also a process that takes a few weeks or months.
A first-party collection agency is just a division of the basic company that issued the debt, to begin with. A first-party agency is usually less intense and forceful than a third party or debt buying collection agency because they spend time to make the client and want to use every possible technique to maintain the client for the future. A first-party agency will gather on the debt right after it has initially dropped past due. Many times, they will send notices of past dues by email and afterwards phone calls. Debt Collection Dubai agencies use a business-led approach, where they combine experts of law and industry to help both debtor and creditors, without disturbing their relationships.
A third-party collection agency is the one, that agrees to collect the debt but this is not part of the original contract between customer and service provider or we can say, creditor or debtor. The creditor will assign the accounts to the third-party collection agency to collect the debt based on contingency fees. This party does not care much about customer and service provider relationships. They call the debtor more frequently as compared to first-party. Debt Collection or Debt Recovery Dubai agencies have teams of advisors. They guide their clients very well about which method they should adopt for collecting debts.
At last, there come debt buyers. Debt buyers purchase debt portfolios that have many accounts typically being from the same company. A debt buyer will possess all bought debt and will collect all of the money paid to them. Debt buyers have more control over negotiations. They are more willing to offer discounts.
Debt Collectors and Advocates:
Now the time is quite advanced. It’s not like 20 years before or 30 years before. A simple debt collector is not any post more or a seat more. Law Firms engage the services where advocates are the debt collectors now. Debt Collection or Debt Recovery Process has been evolved with the passage of time. It’s not a quick call and recovery before. Dubai Law Firms and Collection Services have already hired the advocates in dubai, for the job.
These Advocates and somehow legal consultants too are not supposed to be involved outside the court recovery. But as we said above things have been changed and quite advanced in Dubai and UAE. Therefore legal expertise and knowledge are required now than the man who is just a collector and does not have a legal background.