Part 1 of our Glossary of Collection Terms Blog
Glossary of Terms - In order to help people understand the collection agency business, here is a glossary of often used terms.
Accord and Satisfaction- Both parties agree to accept a settlement agreement and the claim is satisfied and discharged.
Acknowledgment- Admit, affirm, or confess; a partial payment of a debt is a acknowledgment of it.
Action- Case or lawsuit.
Actionable- Sufficient legal grounds for a lawsuit.
Affidavit- Written statement of facts sworn to or affirmed by someone who is authorized to administer oaths.
Agent- Someone who is authorized to act on behalf of another.
Arbitration- When a dispute is submitted to a third party who will decide the award in which both parties agree in advance to comply with.
Assignment- Transfer of property rights to another.
Bankruptcy- Federal procedure in which a debtor is relieved of total liability for his/her debts by making arrangements for their partial payment.
Bulk Transfer / Sale- A bulk transfer or sale of all or most of the business's supplies or inventory not done in the ordinary course of business.
Claim- Demand or assert a right, such as the right to payment.
Closing Letter- Letter sent out by attorneys when a file is closed.
Collection Agency- Third party agency that helps creditors get paid.
Commission- Compensation for services in the effort of collecting a claim.
Cost Advance- Sum of money advanced by the creditor from which court costs are to be paid with.
Counterclaim- Claim by defendant opposing the claim of the plaintiff.
Default Judgment- A judgment awarded when the defendant refuses or fails to respond or appear.
Defendant- Party sued in a lawsuit.
Demand letter- Letter sent to the defendant to notify the debtor that the client has hired someone to collect the debt.
Discharge- To pay one's debts or fulfill obligations.
Dismissal- Termination of a case prior to a normal end.
Execution- To carry out an act or course to completion. A process where an official can attempt to enforce a judgment.
Filed Answer- In writing the debtor states he will either pay the debt or disputes it.
Forwarder- A third party, such as a collection agency, that acts on behalf of a creditor which refers claims to an attorney for collection.
Forwarding Contract- A contract between the creditor or forwarder and receiver.
Rumson, Bolling & Associates is here not only to offer our clients the absolute finest collection services, but we want to offer the web and the world the best information in the collections field. So that whether you are looking to use a collection agency or you are dealing with collectors, we want you to be perfectly prepared.
For more information and inqueries please go to our website: www.rumsonbolling.com