For any business, debts in the market can be a very normal phenomenon. There are many businesses that run their operations on credit and pay later after the term’s end. And there is nothing wrong with that. When your creditor company is doing business dealings with you, you both are presumably on the same page about the payment system. But there can be times when unfortunate incidents happen.

Maybe the creditor company of yours is going through a cash crunch. As a result, it has started initiating the business debt collection even before the contractual terms end. In this case, your creditor company and the agency they are hiring for collection will keep things transparent. But when there is a shed of doubt in the emails, phone calls and messages you are receiving from the agency, trust your gut feeling. There must be something wrong. There are hundreds of businesses around the USA, who fall victim for debt collection scam, even when they are in the clear. As a business owner, you not only just need to know about the collection process but also how to identify a debt collection scam. How can you do that? Take a look.

Too Much of Push and Threats

Maybe you are not aware of all the business transactions of your company. In the case of a big firm, it is not possible for you to keep track of each of your invoices. So, there might be a time when you can get a call from a debt collection agency. Pay attention to what they are saying. If they are just reminding you of an unpaid invoice that has been lying there unnoticed, they will be polite and not threatening. The initiation and the later process of debt collection are supposed to be professional without any pushing or threat. In fact, the agency will sound forthcoming in initiating settlement too if you are in a tight spot financially. But if the person you are talking to is pushing you a lot, if their calls and emails contain treats for you, then you have to be careful. This might be a debt collection scam.

Demanding Payment Via Untraceable Method

Keep in mind that it is a much important for your creditor as much as it is for you to keep the right document of the payment. In case your payment is delayed or the creditor company or their hired agency is asking for payment from you, you will be paying through traceable methods. Traceable online transactions, check payment and even the portal linked to their website will be the right method. But if the entity calling you asking you to pay via wire transfer or some other untraceable method or in cash, there is a high chance that you are beingscammed.

You Don’t Recognize the Account or the Creditor

Even though you are not aware of every minor transaction in your company, still your staff will have the document to recognize the account or the creditor when the payment is asked for. But if you and your staff are clueless about the account and the creditor, then stop entertaining these calls and emails. It is surely a scam and there are no genuine credit collection services involved with it.

So, now as you know how you can spot a debt collection scam right away, what are you waiting for? Stay careful and pay attention to every call and email claiming debts from you.

Author's Bio: 

Donald is a famous blogger on business debt collection. Here he writes on how to spot a debt collection scam that you must know before dealing with a debt collection agency.