Frequently Asked Questions (FAQ)
My company has non-performing accounts receivable, charged-off or bad debt. What are its options for at least partially recouping losses?
If a company has non-performing AR, including charged-off or bad debt, it generally has three options; to work the AR internally, to sell the AR to a debt buyer or outsource it to a third-party collection agency. Cascade365 offers both purchase and servicing solutions.
How and when you (the client) gets paid. Sellers get paid up-front, alleviating economic uncertainty and providing immediately available funds for reinvestment in their core business. Companies that outsource collections receive cash flow over time and without any guarantee of success, paying a percentage of the amount collected. Selling debt often comes with stigma and is seen as higher risk. In actuality, the risk profile of selling debt is very similar to that of outsourcing. In either instance, choosing the right partner is imperative. How your customers and patients are treated reflects on your brand and can cause reputational risk or even legal liability.
Debt collectors are tasked with contacting consumers and finding resolution of past due bills. Successful debt collectors will try to find common ground with consumers with past-due accounts and provide solutions, not obstacles to getting the debt repaid. Having an account in collections shouldn’t be adversarial or opaque.
The Fair Debt Collection Practices Act (FDCPA) has specific guidelines that debt collectors must follow when they speak to you via telephone.
First, if a debt collector calls you, they are required to disclose that their outreach is an attempt to collect a debt and that any information supplied by the consumer will be used for that purpose.
Second, the debt collector needs to identify themselves and the company they work for. If you ask, the debt collector should freely provide contact information, including a phone number and address for the debt collection agency.
Third, a debt collector will need to obtain information from you to make sure they’re talking to the right person. This phase in the conversation can be awkward, as it is counter-intuitive to provide information to someone who just called you. But this is a necessary step in the process to ensure your personal information is not shared with a third party.
The FDCPA provides a comprehensive listing of applicable federal laws pertaining to debt collection — Fair Debt Collection Practices Act
Debt collectors have specific restrictions on what they can and cannot do or say. They should ever threaten or intimidate you when contacting you regarding debt repayment. Cascade 365 debt collectors value open communication, and know that is the best way to have your outstanding balance repaid.
The FDCPA prevents debt collectors from the following actions:
A debt collector may not threaten you with arrest, incarceration, jail, prison or physical harm.
A debt collector may not threaten to freeze your assets, unless due process is applied.
A debt collector may not swear, use profanity or vulgar language.
A debt collector may not continue to call you if you’ve informed them that you are represented by an attorney.
When it comes to debt repayment and collection, you need to establish that the company contacting you is legitimate. Cascade 365 works hard to establish a working relationship with you that is based on trust. But it is important to protect yourself during this process, and avoid the following:
If you cannot determine if they are a legitimate business, look up their licensing information from your state regulatory agency, or check the CFPB database to see if they are registered. Do not follow the instructions of the caller if you cannot determine they are a legitimate business.
Do not provide any financial, account or payment information to the caller if you cannot determine they are a legitimate business.
Do not provide any personal information, such as your social security number.
There may be perfectly legitimate reasons why the name of a creditor is unfamiliar. It is possible that this is a red flag, so it is important to take a couple steps to make sure the debt notice is not fraud.
First off, the origin of the debt could be a credit card from a retail store. If this is the case consider that these retailers are often underwritten by large banks, and not by the brand you originally worked with. To verify the debt collection notice, compare it to the monthly statement of the credit card and see if the bank names match.
There are other reasons why you may not recognize the creditor named on the debt collection notice, such as if the original creditor sold your account to a third party. Online crowdsourced and fintech loans are commonly sold in this fashion. Medical providers also increasingly may sell your account to a third party.
Cascade365 partners with creditors and medical providers to purchase accounts and continue the resolution of those accounts in the collections process through a legitimate and compliant way that works with consumers to resolve their debt.
If you receive a letter or phone call about an account that you do not agree with, you have certain rights to dispute the account or request additional information about your account provided by federal law. These rights can expire after a certain point of time, but most agencies, including Cascade365 will honor your dispute or request for validation after the statutory timer period ends. Cascade365’s goal is to resolve the account, and that comes with providing you with information about your account to help you understand and resolve any outstanding balance.
Cascade 365 knows that your credit reputation and score matters, and encourages you to review your credit report frequently. That way, if you notice an error in your credit report, you can get it corrected to improve the accuracy of your score. If you notice an error on your credit report, Cascade 365 recommends you take the following actions:
Cascade encourages consumers to be proactive, and call the debt collection company or creditor listed on your credit report.
Inform them of the error, and be ready to provide supporting documentation that verifies your information.
Check your credit report again frequently.
Cascade 365 is committed to providing our customers with comprehensive FAQ that prevent fraud and financial scams, as well as plenty of other consumer resources to improve your financial well-being. We also work with our customers in a friendly, and ethical manner to resolve past due accounts, and help consumers improve their financial situation.
If you have an account with Cascade 365 we’re here to help. Speak with a representative today, or access your account online by clicking on the link below.