Debt is such amount that is borrowed by a debtor from an individual or a company on the basis of some terms and conditions.
A Debtor is a person who has borrowed money from a person, a bank or company and he is bound to return the amount within a defined time period with a certain amount of interest too.
The person or company who gives the debt to debtor is known as creditor.
Debt collection process is generally referred to the methods and ways to get the debt back from debtor by the debt collection agencies, a first-party agency or third-party agency. First-party agency is part of the debt giving company and when any debtor fails to return the amount. They start pursuing the debtor and try to recover the amount using different methods and techniques. If first-party agency remains unable to recover then the services of a debt collection agency can be hired for debt recovery.
All the matters are discussed with third-party agency. The details of debt, debtor and terms of agreement are shared to the debt collectors. The professional debt collectors analyze whole situations and send a demand letter to the debtor. It is intimated to the debtor that he has to return the debt within 15-60 days depending on the rules defined by the relevant country’s government. After sending the letter, the debtor is given a telephonic call and debt collector tries to convince him to timely return the debt in order to avoid legal action against him. During this whole process, the debt collectors can only take ethical measures for debt recovery and their foremost duty is to maintain the relationship between creditor and debtor. The repute of creditor should not be affected. Legal action should be used as a last resort.