Understanding The Process Of A D&I
Debt collection is the legal method of pursuing unpaid payments of debts by private individuals or companies. An agency which specializes in collecting debt is called a collection agency. Collection agencies have the legal right to initiate legal proceedings to recover monies owed. Collection agencies are also responsible for hiring attorneys and making sure collection agreements are in writing. A collection agency has to follow the law and follow a schedule of activities established by the attorney general and must abide by certain rules.
Collection agencies use a wide range of collection tools in an attempt to recover past due funds. These include periodic telephone calls, sending collection letters, and setting up personal visits. In many instances collection agencies use threats of violence or death to collect past due funds. Often creditors will settle for a collection agency to leave messages and physical visits on the debtor’s home or place of business in an effort to coerce payment.
A collection agency may use a form called a ‘demand for inspection’, commonly called a D&I. This form states that a particular item is owed to the collector and all relevant financial information regarding the item is needed for verification. If a creditor agrees to the terms of the D&I then the collector may physically visit the property and/or place of business. The purpose of this visit is to obtain verification of the delinquent debt.
Another type of demand for inspection is a ‘demand for payment’ (D&I). This is essentially a statement that states that all relevant financial information regarding the debts noted in the demand is needed for verification. If a creditor agrees to the terms of the D&I then collection agencies can visit the location and/or pay a visit to the creditor to obtain all relevant information regarding the debts in question. It is important to note that collection agencies may not bring their representatives to the location of the debtor.
In cases where the collection agency is seeking information regarding an unpaid credit card debt via a D&I form then it is important to ensure that the form is signed in its entirety. Furthermore, when a D&I is initiated it is important to ensure all pertinent information is completed accurately. If any information is omitted or incorrectly completed during the signatory portion of the form it could severely jeopardize the entire debt collecting process. Because of this possibility, all collection agency collection efforts must be completed in writing.
In addition to visiting the location of the debtor and completing a D&I the collection agency will also attempt to contact the student loans recipient’s parent or guardian. In these cases it is critical for the collection agency to have a person to speak with the parent or guardian on the behalf of the debt collector. If this is not done, the collector will not be able to obtain all of the necessary information regarding the debt.
If at any time it is discovered that a collection agency is attempting to contact an individual living in another state than the statute of limitations will apply. This means the collection agency is limited to pursuing collection activities in that state for the period of time stated in the statutes. Once this limit has been reached, the collector will need to move on to another location in order to collect past-due funds. This means if the collection agency is trying to locate an overdue debtor in another state such as Florida, then the statutes of limitation will apply and the collector would need to obtain a court order in order to collect past-due funds. For this reason it is critical for anyone attempting to locate a person who is behind on their credit card payments to make sure they complete a D&I so the debt collector can proceed.
A D&I can help prevent the embarrassing situation that can occur if a collection agency attempts to contact a person who is not a party to the account. Furthermore, obtaining a credit report that shows the borrower as an account holder will also help protect the borrower from further credit card damage. By understanding how a D&I works a borrower can avoid having their past due accounts shown on their credit report which can severely affect their credit score.