MYTH #3
REALITY
Agencies can only add charges allowed by the lease agreement and state law. Excessive or unauthorized fees can lead to legal issues for the landlord or agency.
COLLECTION AGENCIES CAN ADD UNLIMITED FEES OR INTEREST
MYTH #4
REALITY
There are timelines and verification steps before reporting to bureaus. Some agencies may wait 30-60 days or require validation. Also, reporting must comply with the Fair Credit Reporting Act (FCRA).
COLLECTION AGENCIES CAN IMMEDIATELY REPORT TO CREDIT BUREAUS
MYTH #5
REALITY
ONCE IN COLLECTIONS, THERE’S NO WAY TO NEGOTIATE
Most agencies are open to settlements or payment plans. They often recover more through negotiation than through aggressive pursuit.
MYTH #6
REALITY
Agencies improve odds, but recovery is not guaranteed. Success depends on the debtor’s financial situation, documentation, and how enforceable the lease terms are.
USING A COLLECTION AGENCY GUARANTEES FULL RECOVERY
MOST RENTAL COLLECTION AGENCIES WORK ON A CONTINGENCY BASIS.
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