Credit Card Worries | Receiving the Collections Email

Have you received this type of email from your bank because you have a pending credit card debt? Did you feel scared as it looks like the bank is finally pursuing a case against you? 

This refers to your subject credit card account with us. Your account has remained delinquent despite prior demands. Please be informed that your account shall be re-endorsed to our external collection agency for appropriate action, as follows:

Please communicate with them directly for the settlement of your account. We trust that you will give this matter your utmost preferential attention to avoid the inconvenience and unnecessary expense of having to defend yourself against a collection suit. Before you push your panic button and start worrying that you will be arrested, let's analyze the email first. Is this a real Law Firm? Yes, it is a real Law firm. But they are not their to pursue a case. Rather, they are the one who got a contract with your bank to collect the money / debt that you owe from the bank. In short, they are what we know as COLLECTIONS AGENCY. What is a COLLECTIONS AGENCY? They are the one who try to collect or force you to pay the debt you have against the bank. In most cases, these are credit card debts.  This is something that you will need to understand why Collection Agents are very aggressive when it comes to their tactics in collecting the amount. It is because they have a percentage. For example, your debt is P10,000.00. By paying the full amount, the Collection Agency may get up to 50% which is aroun P5,000. Will I get imprisoned? This is the most common question that I am always ask. Straight answer is No. Unless you have committed fraud in applyinG for your credit card, then you won't be imprisoned. The email you received is not a notification of a case but rather it only informs you that the Law Firm mentioned above will be contacting your to collect the said amount. Read: MAKUKULONG BA AKO SA HINDI PAGBAYAD NG UTANG? What should I do? Use this info to your advantage. At least you know the name of the approved Collections Agency to prevent from being scammed. You can answer their calls and talk to them regarding your situation. Or, you can ignore it especially if it is affecting your peace of mind and mental health.