How to Collect Third Party Debt
When the creditor that is owed the debt hires another party to act as the debt collector, this is known as a third-party debt collector. A third-party debt collector is responsible for collecting the debt on behalf of the company that is owed the money. Typically, the third party receives a commission based on the amount of debt the party is able to collect. If you're the third party debt collector, there are a couple of different ways you can go about collecting the debt.
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Instructions
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Create a collection plan. Write out a collection plan and schedule it on your calendar so you know when you need to do what in an effort to collect the debt. This includes when you'll contact the debtor by phone, in writing via regular mail, by email or by certified mail.
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Call the debtor. Reach out to the debtor by phone to make him aware he owes the company you're representing and how much is owed. Discuss the options the debtor has to resolve this issue and see which option he wishes to proceed.
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Follow up in writing. Whether you come to an agreement with the debtor on the phone, she refuses to pay or you are unable to get in touch with them, follow up in writing. Write and mail a letter that spells out all of the details of the debt, including who is owed, how much is owed and how the issue can be resolved.
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Continue to work the plan. More than likely, you'll have to contact the debtor several times, in several different ways before the debt is resolved. Continue to touch base and follow up with the debtor in different ways and spread over time until you come to some resolution.
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Collect the debt. Once the debt is collected, subtract your fee from the amount of money that has been collected. Submit the rest of the money to the company you collected the debt for.
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