Debt recovery or debt collection are almost similar terms with one small, but very important distinction. The difference is who is trying to retrieve a debt.
Debt collection is a creditor’s attempt to recover consumer credit and loans that have not been paid back by a customer.
Debt recovery is when a loan continues to go unpaid, and a creditor hires a third party, known as a collection service, to focus on collecting the money.
Debt recovery is important because it is directly correlated to your credit score. If you are being contacted by a debt recovery service, it means there is a record that you have defaulted on a loan and currently have delinquencies. These delinquencies get reported to the credit bureaus, damaging your credit score, which can potentially hurt any future loan opportunities.
There are several steps in the debt recovery process and it is important to know what to expect when you are contacted by a debt recovery agent. In fact, because financial debt can be a sticky situation, legislation has been established to guide the debt recovery process and ensure that consumers are protected from harassing debt recovery practices.
Our team can help you in debt recovery through legal process.