Debt settlements are accounts receivable for the company. A huge credit card balance packed with late fees and overlimit fees may be a pain in the ass for card holders. The jump is made from creditor to collections. Yes, your credit card company may call you every day, but when does the credit card company give up?
Historically the debt settlement industry suffered from a less than stellar reputation. There is no way to get around that. Since regulatory reform of 2011 did not impact some business interests as much as others, I think it is time to see what your credit card company really thinks.
Introduce the debt settlement industry. Perception and utilization of the debt settlement industry by creditors, buyers, collectors, and legal recovery firms is what we will study today.
Collection agencies are most interested in the debt settlement industry. Is that because debt collectors think consumers will fail? Do debt collectors sniff to see if the consumer owes other debt? Or perhaps some shady groups want consumers to renew old debt that does not need to be paid due to the statute of limitations. “All of the above” is probably the correct answer.
Collection agencies also made up over half of all companies who currently work with debt settlement agencies to settle accounts.
Credit card companies, on the other hand, only make up between five and six percent of those who work with the debt settlement industry. If you quit paying your credit card bill the account most likely will be turned over to a collection agency. For those who consolidate and therefore use the debt settlement approach, all accounts are lumped together, discounted, and you pay the bill.