Who Is Nco Financial?
NCO Financial are a financial services company that offer a number of different services relating to credit and collections. In layman's terms this means that they are a collections agency, a company that pursues payments on debts owed by other businesses or individual customers. In this article we will look at NCO Financial, and the role of collections agencies in general.
NCO Financial have been in business for over 80 years, and employ over 30,000 people in over 100 different locations around the world, spread across 11 countries. Their headquarters is based in Horsham, PA, and their website boasts of the many finance, customer service and training awards that they have won over the last few years.
The company offers a number of different debt recovery services. These include fixed fee work, first party collections, early intervention services and third party collections. These different services see NCO getting involved at different stages during the debt recovery process, depending on the preference of the credit company that they are working for.
Anyone who continually misses repayments on their credit products, such as their credit cards and personal loans will likely receive telephone calls and letters from the credit company, asking them to rectify their account. If this does not happen and the customer continues to miss payments, the credit company may then elect to pass the debt on to a collections agency, such as NCO Financial.
The collections agency will then try and recover the debt from the customer, often working on behalf of the credit company for a fixed fee or a percentage fee of the amount recovered. This is known as 'third party collections'. Some credit companies have their own in-house collections agency that is part of the same company, in which case they operate 'first party collections'.
It is also possible for a collections agency to purchase the debt outright off the credit company. To do this they will usually pay a low percentage of cents in the dollar, and keep any profit that they make if and when they recover the debt. If they fail to recover the money they may sell the debt on to another collections agency, and the process starts again.
As the collections agency will make more profit for every extra dollar they recover, they will drive a hard bargain. If you have an outstanding debt that has been passed onto a collections agency, do not be surprised if they threaten to take you to court unless you pay the amount immediately in full.
The main piece of advice in this situation is to stand your ground. Whilst it is far preferable to repay the debt, it is not recommended that you over-stretch yourself to a point where you are getting yourself into further financial strife. A court judgment is also time consuming and costly for the agency, and they will want to avoid this wherever possible.
NCO Financial and other debt collections agencies are often willing to work with you, so ask about setting up a payment plan or suggest coming to an agreement regarding the debt. They will recover more money this way, and you will be able to repay the debt and start rebuilding your credit score.
by: William Trustey