Collection is the act and consequence of collecting : obtaining the money corresponding to the development of an activity, the sale of a product or the payment of debts. Collection is the collection in question.
For example: “I won't be able to meet with you tomorrow afternoon because I have to collect payments” , “The collection of this transaction is taking too long” , “I have already informed the director that we have no collections scheduled for this week” .
Companies often have employees or even offices or departments dedicated to managing debt collection . For any company, collecting payment for services rendered or products sold is essential: the money earned supports its operation. If the company does not collect payment (i.e. if its customers do not pay), it does not receive the funds it needs to operate and meet its own obligations.
The collection procedure is usually stipulated by the person offering the product or service. The person who must pay, therefore, already knows what the conditions are. If a person contracts a telephone service and the telephone company, in the established contract, details that the collection is made from the 1st to the 5th of each month , the subject has to pay within that period. Otherwise, he will be in default and may be punished in different ways (with the charging of interest or the cancellation of the service, to name two possibilities).
It is also important to know that those who specialize in debt collection must always respect certain rules. That is, they cannot perform actions that are prohibited, such as:
-Harassing the person who owes the money. This means that you cannot call them constantly on the phone, threaten them or insult them.
-Giving you false credit information.
-Take possession of your property.
-Telling you that you will be arrested or your property seized if you do not pay the amount you owe.
-Pretending to be lawyers to “scare” people.
It is worth noting that there are even companies specializing in debt collection . In this way, those who need to collect money from other people do not get directly involved in the claim, but rather appeal to these types of entities.
Sometimes, collecting certain amounts is very complicated because the person who has to pay tries to avoid paying the money they owe. For this reason, there are those who resort to services known as “The debt collector in a tailcoat” which is presented as a tool against defaulters. This is a service that consists of an individual, dressed in a tailcoat and carrying a briefcase with the word “defaulter” written on it, following the person who has to face a debt everywhere and does not pay it.
The fact that he may feel embarrassed and that his neighbors or friends may point him out as a defaulter may lead him to agree to pay the money he owes immediately.
When a debt collection situation does not yield the desired results, the person who is owed an amount must resort to the law. This means following the channels that exist for cases like yours, including filing the corresponding lawsuit.