A record 7 million Americans are 3 months behind on their car payments. This could be because of loss of regular income, mismanagement of personal finances or other circumstances like a sudden medical emergency due to which his cash reserves have depleted or even personal situations like divorce.
Many Americans who fall behind these payments, include those with low credit rating and had to turn to sub-prime auto loans with high interest rates.
Once a customer has stopped making payments or has started to give doubtful excuses even started to ignore your payment reminders, them it may be a high time to involve a debt collections agency. It is recommended to contact a collection agency if the last installment has been more than 30-60 days past due. Involvement of a collection agency is a game changer, they are experts in collecting debt. The longer you wait, harder it will get to recover your money.
Before you hire an agency, check if they are licensed and bonded in those states where your these individuals are located. The agency should preferably have both consumer and commercial collection divisions, therefore even if your debtor is a business (ex: company lease), the same collection agency can pursue the matter.
If the main signer cannot pay, the collection agency will approach cosigner for payments.
If a debtor ignores payment repeatedly then his credit score and FICO score starts to drop and in many cases his car may be repossessed (in most states). A collection agency can even go to the court and garnish amount gradually from the debtor’s paycheck.
The biggest downside of waiting is that the value of the asset (car) depreciates if a bank or a car dealer waits longer. Forget about getting the interest, if the lender waits too long he may not even be able to recover the principal amount.
Check this page >> Cost of Hiring a Debt Collections Agency
If you are looking for a good collection agency, we can help you. Contact us if you are interested in finding out more.