In a free market economy, solutions to problems and needs in commerce are typically met through innovation and entrepreneurship. In the United States as well as other free market economy’s, debt collection agencies have emerged as a solution that businesses looking to collect past due accounts can turn to. Unfortunately, there is a general public dislike of debt collection agencies as most people, at one point or another have had to deal with a debt collector. While the experience is far from a walk in the park, most people fail to recognize that debt collectors are a mild effect of failing to pay an obligation. Around the world in more oppressed regions where debt collectors do not exist the penalties for debt are often much harsher. AccountsReceivable.com explains how debt collectors exist in lieu of much harsher and inhumane alternatives.
In the United States, there is no debtor prison. It is not a crime for simply failing to pay your bills which is why most companies turn to debt collection agencies as there would be no criminal remedies available. Around the world however that is not the case. In India for example, debtors can be imprisoned under the Negotiable Instruments Act. In the United Arab Emirates failing to pay a debt can also land a consumer in jail.
Ridiculous Interest Rates:
Without debt collectors acting as a counterbalance for businesses against nonpayment, lenders often must offset defaults by charging ridiculously high-interest rates to their paying clients. In Mexico for example, APR% on a credit card can range from 60% up to 125%. As a result, many consumers remain in debt as they are never able to fully pay down astronomical interest charges. While collection agencies do advocate for the creditors, by collecting delinquent accounts from consumers they are able to level off the impact of default and assist in keeping interested rates reasonable.
While the penalties for debt vary by nation, most can agree that reputable debt collection agencies like AccountsReceivable.com are a much more tolerable solution than the old gulags of the Soviet Union. Whereas other solutions are aimed at punishing debtors, debt collectors are focused on simply resolving the obligation ensuring that our economy remains stable and consumers can move past the burdens of their debt. If you are in need of a reputable debt collection agency call 321-710-3530 or fill out the form below.