Credit Repair Expert Shares Insight Regarding Collection Agencies

December 03, 2019 - /PressAdvantage/ - CA based Poser Tubes Credit Repair - San Francisco recently published a new blog post exploring whether paying off collections can help improve credit score. The company states that it is possible to improve credit scores this way, but there are certain methods that can be utilized to maximize the benefits a person receives from doing so. They hope that their advice can set people on the right path to resetting the clock on their credit history. Learn more here: http://www.posertubes.com/credit-repair-san-francisco-ca/.

As Poser Tubes notes in their blog post, “Credit is an important factor in maintaining your financial stability. In fact, bad credit can break deals you want to make, from big purchases to relatively minor things like getting a new credit card. Your payment history primarily decides your credit rating, and it can be tricky to maintain a positive score. One factor that can have a large impact on your credit file is collections.”

As many are probably aware, falling behind on a few payments can often be remedied by investing only a little effort. However, consistently missing payments for an extended period may lead to the account in question being handed over to collections agencies, and this will inevitably have a negative impact on the associated credit report. Given that much more effort needs to be expended in order to reduce the harm already done to the owner’s credit score, the company strongly advises credit card holders from letting their payments fall so far behind.

However, Poser Tubes also acknowledges that a multitude of factors outside a person’s control may lead to their credit score being damaged in this manner, so they are keen to share information to help people get out of such situations. To this end, their post begins by outlining the problem at hand.

“Debt-collection agencies (not credit repair specialists) specialize in collecting debts from customers where the original creditors have failed to get arrears on an account paid within a satisfactory period,” says the company, adding that this is accomplished in two ways. They continue, “The original creditor, that is the company you originally owed the money to and took out the loan with, sells or assigns your debt to a collections agency. Companies usually turn people over to bill collectors if the amount you are paying them is not enough, or if you miss payments repeatedly. When you take out the original loan with the creditor, there is a clause permitting them to go to collections should you default.”

This allows the original creditors to recoup some of their losses. While it may seem more profitable for them to hold out and try to obtain the full amount from the borrower, these situations are often considered unlikely to be resolved in the creditor’s favor. As a result, they consider it more tenable to instantly take back some of their losses and write off the rest. Since this means the debt has been sold, the collections agency that purchased it has a strong incentive to collect the rest of the amount owed, especially since that is how they make their profit off the transaction.

“In the second option, the creditor still owns the debt, but they contact you using a collection agency. The agency retains a percentage of the money collected,” says Poser Tubes. They clarify that, “The consumer can tell which of these options is being used by consulting the letters received from the debt collection agency. If you are asked to continue paying the original creditor, the debt will likely be owned by them.”

There are a few advantages to be gained if an agency takes over the debt. For instance, this may mean that any associated charges or interest will effectively halt, giving the debt a flat amount that will not grow any larger if they need more time to pay it back. Poser Tubes cautions against making this presumption, however. They say, “It is important to remember that if the original creditor still owns the debt, they may continue to add fees and interest while the collection agency is contacting you. These charges are one of the reasons it is essential to engage with and respond to agencies quickly once they contact you; it could save you money.”

Poser Tubes’ full post, and their other entries, can be freely accessed through the company’s website. More information regarding their credit repair services can be found here as well, as interested parties are welcome to contact Cliff Cooper of Poser Tubes Credit Repair - San Francisco to follow up on any inquiries. Find the company here: https://maps.google.com/maps?cid=12480793397499515439.

###

For more information about Poser Tubes Credit Repair - San Francisco, contact the company here:

Poser Tubes Credit Repair - San Francisco
Cliff Cooper
(415) 599-0890
info@posertubes.com
373 Broadway
San Francisco, CA 94133

ReleaseID: 60032844

More News From The Market Noise

Ukrainian leader felt Trump pressure before taking office

Dec 5, 2019

KYIV, Ukraine — More than two months before the phone call that launched the impeachment inquiry into President Donald Trump, Ukraine's newly elected leader was already worried about pressure from the U.S. president to investigate his Democratic rival Joe Biden. Volodymyr Zelenskiy gathered a small group of advisers on May 7 in Kyiv for a meeting that was supposed to be about his nation's energy needs. Instead, the group spent most of the three-hour discussion talking about how to navigate the insistence from Trump and his personal lawyer Rudy Giuliani for a probe and how to avoid becoming entangled in...

Europe's specialty food makers brace for US tariffs

Dec 5, 2019

MILAN — European producers of premium specialty agricultural products like French wine, Italian Parmesan and Spanish olives are facing a U.S. tariff hike due Friday with a mix of trepidation and indignation at being dragged into a trade war they feel they have little to do with. The tariffs on $7.5 billion on a range of European goods were approved by the World Trade Organization as compensation for illegal EU subsidies to plane maker Airbus. The U.S. has some leeway in deciding what goods it puts tariffs on. So while it is taxing European aircraft goods an extra 10%, it...

The Latest: British govt insists there is Brexit progress

Dec 5, 2019

BRUSSELS — The Latest on Britain's plans to leave the European Union (all times local): 10 a.m. The British government says talks with the European Union are making progress, despite the lack of a breakthrough overnight. Prime Minister Boris Johnson's office says talks are resuming Wednesday after a "constructive" session that lasted late into the night in Brussels. Johnson is eager to strike a deal at an EU summit starting Thursday so the U.K. can leave the bloc in good order on the scheduled date of Oct. 31. But both sides say gaps remain over plans for maintaining an open...

Kosovo election winner in no rush to restart Serbia talks

Dec 5, 2019

PRISTINA, Kosovo — A left-wing party leader poised to become Kosovo's next prime minister said Tuesday he isn't in any rush to restart formal talks intended to normalize relations with Serbia and won't lift the previous government's 100% tariff on Serb imports. In a general election held Sunday, Albin Kurti's Movement for Self-the Determination, or Vetevendosje, defeated center-right political groupings formed by former Kosovo Liberation Army fighters who had governed since 2007. Kosovo, a former Serbian province, declared independence in 2008, a decade after an insurrection by KLA fighters and Serbian strongman Slobodan Milosevic's bloody crackdown launched a 1998-99 war....

AP sources: Trump allies sought changes at Ukraine utility

Dec 5, 2019

KYIV, Ukraine — As Rudy Giuliani was pushing Ukrainian officials last spring to investigate one of Donald Trump's main political rivals, a group of individuals with ties to the president and his personal lawyer were also active in the former Soviet republic. Their aims were profit, not politics. This circle of businessmen and Republican donors touted connections to Giuliani and Trump while trying to install new management at the top of Ukraine's massive state gas company. Their plan was to then steer lucrative contracts to companies controlled by Trump allies, according to two people with knowledge of their plans. Their...

Sign up now!

About Us

The Market Noise is the first place to look when you need financial and economic insights. We deliver the most accurate news in the business and marketing world to you.