Debt collection and Debt recovery – both may sound to be similar to each other. But in reality, they are not. There is a slight difference that these two shares. Basically, debt collection can be understood as an attempt to recoup consumer loans and credit that a customer has not repaid.
Whereas debt recovery takes place when a creditor engages a third party, known as a collection recovery services provider like CreditQ.
What is the Process of Debt Recovery?
Once the debt has been turned over to a collection agency, the creditor will notify the debt collector of the failure to make payments in accordance with the terms of the agreement.
They will provide them with the claim information and supporting evidence related to the debt settlement services. The recovery procedure starts with a demand letter that is sent to the debtor and an acknowledgement letter is delivered to the client after the claim has been examined and accepted by the debt collection firm.
When you choose the CreditQ application, you don’t have to handle this process manually or hire a professional; the app is capable of maintaining everything.
Is It Possible to Remove Collection Recovery Services from the Credit Report?
There is a possibility under which the collection recovery services can be removed from the credit report. To be precise this is when the debt is a mistake.
In case the collection recovery services are trying to collect an illegitimate debt, then the chances of you removing it from the report are higher. For instance, it could be the one you paid on time or not belong to you.
On the other hand, if the debt is more than seven years old when calculated from the date when you first got a missed payment, then it is supposed to fall off the report.
This is when you can dispute it on your credit report and get it eliminated by sending a letter of credit dispute to the collection recovery services. Apart from that, you can seek help from the current creditor which could include both the original creditor and a debt collector. This is known to be goodwill deletion.
Rely on the Leading Collection Recovery Services
When looking for collection recovery services, CreditQ can be your helping hand. By choosing us, you would be assisted entirely to report the business credit defaulters and generate CIR to find out the credibility of a new client.
Apart from that, our team members ensure that your MSME Cibil score is maintained.
We make sure that you are not left behind to face losses and get complete support in credit risk management services as well. The CreditQ application will not only assist you in avoiding losses but also help in handling the complete debt management process so that your business runs smoothly.