Associated Recovery Systems is debt collection agency with its HQ in California. This company deals via many affiliate partners around United States. Associated Recovery Systems earns it revenue by making a profit off debtors’ charge offs. The process is actually quite simple for third party collection agencies like Associated Recovery Systems.
Many people have outstanding dues that they may owe to several companies, for instance pending credit card bills, unpaid medical bills, unpaid telecommunication bills, unpaid EMIs on home loans etc.
When the original creditor makes a deal with a third party collection agency like Associated Recovery Systems, the debts are charged off at a lower price than the actual debt.
It is actually a win-win situation for both the creditor and the debt collection agency. The creditors regain
most of their money back; while the collection agencies can now tackle the debtor and make them pay up the original debt plus extra charges that translate into profits for the debt collection agencies.
If you are wondering how collection agencies like Associated Recovery Systems recover the money from the debtors, then you need to be introduced to certain collection techniques that they employ. First of all they will contact the debtor on phone and inform them of the money owed. If the debtor expresses inability to pay the amount, the next step is taken. This is when the scare tactics, threatening statements, abusing and relentless disturbing all come into play together. If the debtor is ignorant about the fair practice laws regarding debt collection, then they are sure to be taken for a ride by these collection agencies. Most common tactic is to communicate an urgent deadline to pay up a huge sum of money, failing
which they scare the debtor with an imminent lawsuit.
That’s not all, because the collection agencies can make the game dirtier by re-selling the outstanding debt to another debt collection agency. What all these charge offs and reselling of debt to numerous debt collection agencies result in are tumbling of the debtor’s credit scores with all 3 bureaus to base levels.