The viability of all credit agencies and banks depend upon timely repayment of the loan amount and the interest. For various reasons, however, many of such repayments do not take place. There are many steps that the lending agency may take to avoid such cases, and alleviate the situation when there is a prospect of default.
The loaning agency must always verify the credentials and the creditworthiness of the client. One must verify if the prospective client has a good credit history. Does he repay the whole amount? Does he repay in time? So, a credit report is a must before every loan transaction. Credit reports are available as public records in many jurisdictions. Many services offer credit reports on prospective clients for a price. It is a sensible practice to verify the credit report of each client at least once a year. The credit agency must also verify that the loan amount is used for the specified and granted purpose only. Things may go wrong even after such heedfulness. It is here that proper collection mechanism may help.
Repayment of the loan may or may not be the duty of the client, but it is the legal right of the credit agency. There are financial and legal avenues of redemption. Today, many collection agencies provide debt collection, enforcement and bailiff services. Even collection software packages are available nowadays that streamline the process of collection, increase efficiency and speed, and decrease the scope for mistakes.
In this section of the directory, we provide links to many credit collection resources.