jewel1980 Posted August 8, 2003 Report Share Posted August 8, 2003 hi,Question: What is the purpose of a company (ex. Wells Fargo Bank) using a collection agency(ex. AMAN collection services) for its collection activity if the bank has a department called Wells Fargo Loss Recovery Center (is that not kind of stupid).Furthermore, what is the purpose of a CA a all, except the stereotypical harassment by CA employees they are so infamous for.anyway just wanted to blow off my opinionothers' insight wantedtoodles,jewel Link to comment Share on other sites More sharing options...
jam Posted August 9, 2003 Report Share Posted August 9, 2003 The simple answer is they field out accounts that they can not collect internally, hoping that 'a fresh approach' will be able to bring new results.BUT, think of it this way, until their in-house collections department fields it out to a CA, *YOU ARE NOT* covered under the FDCPA, and their in-house department could do virtually anything as long as it doesn't break any other federal law. So by turning you over to an outside collection agency, they are doing you a favor and granting you specific protections under federal law.And for the ones which the stereotyping of being harrassers come from, it can work for the majority of people who do not know the law. Read the FTC Press Release for their action against National Check Control, and the mind-blowing amount that the company reports that it has actually collected, granted when they go down completely, a lot of that will be going back, but they were able to collect it...For the CAs who use that tactic, they can justify it by looking at how long NCC was able to get away with it before they got caught... Link to comment Share on other sites More sharing options...
cybercrusader Posted August 9, 2003 Report Share Posted August 9, 2003 Furthermore, what is the purpose of a CA a all, except the stereotypical harassment by CA employees they are so infamous for.The same purpose as the cockroach or gnat....to be pests In all seriousness though, and in addition to jam's point, CA's are also supposedly "better" at collection because it's their primary business function. They do it everyday and are more cost effective at it, whereas an OC's primary function is to loan money. CA's are also in the business of buying defaulted debt for pennies on the dollar. Their hope is to collect more than they paid for the account. You have to at least give some credit to someone who tries to make a living on other people's misfortunes. I know I certainly couldn't do it (nor would I want to). I like honest work. Link to comment Share on other sites More sharing options...
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