Family member won’t pay you back? Hire a debt collection agency

Posted in Family Finance

Co-signing a loan for a family member is more risky than rewarding because you are liable to pay the loan. When a personal relationship is involved, the task of recovering debt becomes an uncomfortable one. It is no secret that disputes involving family members lead to conflict and even disruption of relationships. However, this does not mean that you should not do anything to recover your loss. If you provided a loan to a family member, you should hire an agency specialising in debt collection London. Many people think that debt collection is something that only contractors or businesses have to deal with, but this is not true. If you have trouble securing payment from other people, you should turn to debt collectors.

 

Interpersonal loans are risky

When someone close asks you to co-sign a loan and promises to repay his loan, you often end up helping that person. You cannot say no to a family member. However, you will soon regret this decision when the due date comes. The person may not pay the loan, because either they are unable to or simply irresponsible, and you will inherit the credit. A handshake or a verbal agreement is no guarantee that you will be repaid as soon as possible. You want to think that the family member is honest and upstanding, but the likelihood is that when the due date comes you will be the one who has to secure the payment.

Using a debt collection agency

If you have met with the family member and they refuse to pay the money they owe, you have no other choice than to hire professional debt collectors. Trained professionals focus exclusively on recovering money, which is the reason why they know how to convince people to pay what they owe, not to mention they have the necessary resources. Some say that it is better to talk to an attorney first. However, a lawsuit will cost you more. Attorneys request more money upfront compared to debt collection agencies.

What to look for in a debt collection agency

Try as you might, you will not be able to avoid the collection process. When it comes to hiring a professional agency, you need to make sure that the agency is legitimate and that it has insurance. The agency should be able to do more than make phone calls. Equally important is to make sure that firm adheres to the rules of fair debt collection.