The myths of Debt collection
- Jodi Henning
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Account Collections are focused on breaking down some of the myths around debt collection for everyday people.
We believe that most of the time, people do want to pay their debts but in reality, things happen. They might have reduced working hours, become sick or find themselves in other circumstances which mean they are unable to meet their obligations.
Sometimes things just don’t go to plan and our job is to find a way through that and remove the worry for both the organisation who is owed money and their customer.
We are genuinely here to help – we understand that every customer’s situation is unique and our staff work hard to find tailored solutions. We work with people to ensure the debt that is owed is paid.
If there is a problem, we urge customers to contact us immediately. We are committed to resolving any dispute quickly and fairly. We have a customer service and risk and compliance team who are there to help, so please give us a call.
What does Account Collections do?
We help recover outstanding debt for businesses both here in New Zealand and Australia. We work with customers (debtors) to resolve their debts by finding a solution that works for everyone – both the business owed money and their customer.
How does a debt end up going to Account Collections?
Businesses send their debts to Account Collections when customers fail to pay for a product or service that is overdue. If the account or invoice is paid on time, it shouldn’t end up with Account Collections.
What should I do to stop a debt ending up with Account Collections?
To avoid a debt going to Account Collections, debtors need to make sure your bills and accounts are paid on time. If debtors are struggling to pay a bill, our advice would be to call the business owed the money and talk to them about it. Making contact is a crucial first step – and may avoid the debt going to Account Collections in the first place.
If my debt does go to Account Collections, what should I do?
Once Account Collections receives a debt, our initial step is to send a letter to the person owing the money. If you receive a letter, you need to pay the debt or call us to discuss the repayment of your debt. In most cases, once people make contact after they receive a letter, we are able to organise for the debt to be paid. If you are unable to pay the debt immediately, you need to let us know so we can find a solution.
How will this affect my credit rating?
Account Collections itself is not a credit bureau and does not manage credit ratings. When Account Collections is asked to collect a debt, the first thing we do is to send a letter to the customer (debtor). If we do not receive payment, the customer’s details will then be registered with a credit bureau, which may affect a person’s credit rating. As soon as the debt is paid, this information is updated with the credit bureau.
While Account Collections is not a credit bureau, Centrix can provide you with a credit report so you know what your current credit rating looks like.
What is the difference between a debt collection agency and a credit bureau?
Account Collections is a debt collection agency helping recover and resolve debt, while a credit bureau manages a customer’s credit rating. Credit bureaus provide credit record information to businesses and organisations who extend credit for purchases, services or loans.
While Account Collections is not a credit bureau, Centrix can provide you with a credit report so you know what your current credit rating looks like. Click here for your free report.
What should I do if it’s not my debt or I don’t agree with some aspect of it?
If you receive a letter from Account Collections for a debt that doesn’t belong to you or if you have already cleared the debt, or have any another query in regards to the debt/letter, you need to let us know. We are here to help and are usually able to remedy the situation quickly. If the debt is not yours, you will not be responsible for it – but you will need to prove this is the case.
What if I can’t pay my debt?
Account Collections is genuinely here to help people get out of debt. If you are unable to pay the debt, you need to let us know so that we can find a solution. Making contact with us is a crucial step to avoid things getting worse.