3 Debt Collection Myths Busted – Know Your Rights



Are you wondering how you will be able to get all your money back from the market? Are your debtors currently refusing you to pay back the debt? In such a situation, it becomes pretty difficult to recover the money from the market without any professional assistance. So, if you are planning to hire an agency for debt recovery, then it is surely a good decision. But when you are doing so, it is better that you have a clear idea of what you are getting into.

Generally, people believe in many myths when it comes to dealing with unpaid invoices and hiring agencies for commercial debt recovery. So, if you believe in some myths too, you are in the right place. Take a look at the following points.

You can Take as Long as You Want to Pursue the Debt – Myth:

No, you can’t. You will only have the time of 6 years. After that, the debt will be Status Barred. This is significant as,after this, the debtor doesn’t need to pay. But if he or she pays again that will reset the 6 month period for Status Barred. Make sure you are hiring a collection agency before that time frame.

Black Mark in Credit will Go Away after Payment – Myth:

No, it doesn’t. When you are involving a debt collecting agency in the dealings, the debtors will be already under the risk of affecting their credit score potentially that will prevent them from going for a loan in future. And even if the debtor pays the amount, the mark will be still there.

A Verbal Contract is Not Valid – Myth:

A verbal contract is as much valid as a written one. If the debtor has promised verbally to payback on time then he or she is supposed to do that. Or if the debtor got a warning from you on phone and gave a date, it is as much valid as if he would have done it inwriting. However, experts always suggest maintaining communication through chat.

So, now as you know about these myths and how they are busted, don’t remain under any false impression. Take the right step at the right time and get rid of unpaid invoices.

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