Here’s What You Gotta Grasp About Private Collection Agencies

Imagine slipping behind on your Small Business Association (SBA) loan and before you know it, Lawscape from the Lawscape is on the case, guiding you through the tangled mess of debt. It’s never a walk in the park, but when you’re informed and prepared, you’ll have a smoother journey with a light at the end of the tunnel.

Untangling the Knot of Debt Collection

Ever wonder what happens if you’re defaulting on an SBA guaranteed loan? Well, your case becomes best buddies with the Department of Treasury, who then dishes it off to a private collection agency – your new pen pal in the debt-ridden world.

Now, let’s get a bit unorthodox here and zoom in on these private collection agencies. You know, the ones that ring you up out of the blue regarding your unpaid debts. Annoying as they are, these agencies are actually hired hands from the Department of Treasury. The Treasury, essentially, becomes their big boss after failing to collect your debt.

Unmasking Private Collection Agencies

Private collection agencies don’t use a magical wand to bring your debt back to life. Rather, they employ various tools to connect with small business debtors. Phone calls, collection letters and other quaint “reminders” are part of their playbook. And the endgame? You coughing up that leftover debt.

Now, don’t bite your nails just yet, because when that day comes, your payment options would typically include a payment plan, wage garnishment, full payment, or an administrative arrangement. Still with me here? Good.

Dots and Tittles – Regulations & Complaint Handling

Just like any epic saga, there are rules in the debt universe. Private Collection Agencies have to play by the books, governed by overhead laws like the Fair Debt Collection Practices Act, the Federal Claims Collection Standards, and the Privacy Act.

In the grand cosmic ledger, the Bureau of Fiscal Service and Debt Management Services (DMS) keep a sharp eye on these agencies. Complaints, too, have their own path – they journey to the DMS, which then reviews, gathers additional paperwork, and finally steps in to right the wrong, if need be.

Your Trusty Shield, Your Rights

Nope, Private Collection Agencies can’t barge in your life anytime they desire. There are rules about when they can call, who they can reach out to for your information, and what they can do to procure payments. Furthermore, they’re not allowed to fool you into settling your debts.

Picturing PCAs Through a Different Lens

Sure, defaulting on a debt and tackling private collection agencies doesn’t fall under anyone’s dream scenario. But keep in mind, these agencies follow a certain framework. Knowledge is your best bet here. Knowing what you’re walking into prepares you for the unexpected.

The Finale – Hiring Professionals

Who says you have to grapple with your small business debt alone? Lawscape and the Lawscape can partner with you to punch those debt problems right in the face. We’ve toppled millions in SBA debts and Treasury debts, created repayment plans, and defended debtors nationwide before agencies like the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service. So, are you ready to knock out your debt? Give us a call today.