What Is Debt Collection, And What Do Debt Collection Recovery Lawyers Do?
The Traditional Debt Collection Process
Traditionally, those seeking debt collection for bad debt recovery would work with debt collection and recovery lawyers, regardless of it being commercial or civil debt. The lawyers would then send a debt recovery letter, or “letter of demand”, to the debtor, giving them a set date to pay by. The letter would also inform the debtor that if they failed to pay in time the lawyers could pursue legal action, and charge for further legal costs.
If the collection procedure was unsuccessful, the lawyers would send a final letter before legal action.
Traditional debt collector fees varied based on the agency’s policies and the laws of the state or territory, but they usually ranged from 5 to 30 per cent of the debt’s value.
In the modern day, debt collectors will sometimes utilise online debt recovery.
Debt recovery law in Australia allows someone to sell debt to a collection agency. The debt recovery companies can then take charge of the collection process and pursue the debtor. If you are being chased by these debt recovery companies, Velos & Velos Lawyers can protect your rights, and attempt to protect your good credit rating, maintaining your ability to use credit cards and take out loans.