Canada Debt Collections
There are many reasons to borrow money, and there are many types of loans to satisfy the needs of borrowers. A primary distinction between loan types is whether the loan is secured or unsecured.
A secured loan is made when the lender will not lend the money wanted without having some sort of security. The security can be a home, a car, a refrigerator, investments and many other pieces of property that make the lender comfortable loaning the money. The lender knows that it can get back all, most or some of the money lent by seizing the secured property and selling it to the highest bidder.
An unsecured loan is made by the lender with the belief that the borrower will be paying back the loan through future earnings or the sale of assets. Examples of this type of debt are credit cards, payday loans, student loans, and other simple lending/borrowing situations. The lender has no right to seize any specific assets in this case, and is depending on the good word and earnings of the borrower.
Canada debt collection agencies are professionals that are hired by banks and many other companies to collect the money owed when there has been a breach of the agreement to pay.
In the case of secured debts, banks will normally hire different businesses to foreclose on a house, or repossess a car in an attempt to get back all of the money owed plus interest plus costs. For example, after a repossession of a car, there will be a public sale of the car. After the car is sold, there is almost always a deficiency. This deficiency is the amount owing on the loan after subtracting what the bank received at the public sale.
This deficiency can be sent to a Canada debt collection agency, and they will begin the process of collecting the balance owed. This process starts with phone calls, and letters. It can, if necessary, result in to hire debt collection agency,Canada an attorney, who after another series of letters and phone calls, can file a lawsuit against the borrower who has not paid in full the amount owing. Most cases are settled without going to court.