You may be a business man and have numerous unpaid funds, unpaid loans, dishonored checks or other outstanding debts in the market from sales, contracts or other situations. What course of action you can take to recover these bad debts? To recover your unpaid funds, you can assign collection to a Licensed Collection Agency. Such collection agency can ease your work of debt collection, in exchange of certain commission on fund collected, as they have expertise in this field.
No business can run without their credit customers or buyers, who pay after certain period of time for the goods bought by them or services performed for them. But, on numerous occasions, the debts from such customers are left unpaid due to various reasons, such as the business man may be short in staff to spare for the collection, he may be a busy person and can not devote enough time for the collections or the credit customers simply ignores his payment letters or requests, their checks are dishonored and so on.
In these cases, the businessman is left with no alternative except to give payments collection responsibility to a Collection Agency through, Assignment to Collection on his behalf. These agency people also posses required expertise that is needed in payment collections field. There are also numerous people working for such agencies, who are fully devoted for the collection of payments for different parties.
But, it is also necessary that, before offering Assignment to Collection, the creditor should enter into a written Agreement with the Collection Agency or Debtor assigning him the collections of the payments. The reason being, without proper assignment contract, collecting someone else’s due payment is unlawful, which may draw legal actions. Even, the person, owning payments to creditor, can not pay due amount to collection people without, proper collection assignment identification provided by the creditor.
Below given Assignment of Collection template will guide you making your own Assignment to Collection Agreement:
ASSIGNMENT OF COLLECTIONS
This is a legal contract and authorization by:____________________________
Granting the authority to PAYMENT SYSTEMS, a duly Licensed Collection Agency to collect unpaid funds, dishonored checks and/or any outstanding debt arising from a sale, contract, agreement or other situation made between the CREDITOR And;
The current amount due to the creditor is $ ___________________
This agreement is entered into on them ________ day of, ________20xx