Debt Settlement Back End Processing

Learn how debt collection agencies work.

Debt settlement back end processing is the company or service that provides the handling of a transaction. If you are facing debt settlement, you may work directly with a company hoping to collect a debt from you. That company may or may not be the company that you originally incurred the debt with.

Debt Settlement Back End Processing Companies

Companies providing back end processing services are the companies that work between the creditor and the debtor. These companies have licensing to provide service to debt collection companies, banks, lenders and other financial institutions on a state-by-state basis. In most situations, the debtor will have no idea that they are working with a debt settlement back end processing company.

Back End Processing Company Qualifications

One of the most common reasons for looking for information on back end processing of debt settlements is because you want to work with these companies. If you are a sales agent or other representative, or even a business that hopes to do business with these processing companies, there are several key factors to look for in these companies. Not all companies are the same. By doing business with a less-than ideal company, it could result in lower response rates and wasted investments.

  • Licensing: The first and most important consideration for hiring this type of processing help is the licensing of the company. Companies must have a license with the state your business is located in to provide you with services. It is rare for companies to hold a license in all 50 states. Some do carry several state licenses.
  • Commission Amount: Before hiring a company to handle debt settlements, find out what commission you or your business will earn. The commission rates listed is not the percentage of the debt you will receive, but the percentage of the collected debt your business will receive.
  • Settlement Offers: Determine what type and amount of settlement the company is likely to offer to your clients. Some will offer a "50 percent settlement guarantee" which means that the debt may be paid off in full for 50 percent of the original debt amount. The settlement offer will affect how much you collect and how responsive your clients may be.
  • Training and Support: Individuals working for these processing companies need guidance on how to use their systems and how to use the service. In addition, as a business, you need support to handle questions, concerns or problems that arise. The best companies provide this service.
  • Lead Support: Depending on the company and your position with them, you may wish to select a company that provides lead support. An example of this need is working with the company's back end processing to close out debts for a commission. Having a steady stream of leads is critical.
  • Attorney Represented: Some companies have attorneys on hand to handle any necessary mitigation or legal documentation. Although they may not be necessary to call on, working with a company that offers this resource helps ensure that the company has protection, as are those working with them.

Why Are They Calling You

Yet another reason that people encounter a debt settlement back end processing company is during the actual debt settlement process. Consumers may find that they need support from the company to process payments. They may question whom they are dealing with to make their debt settlement payments. The customer makes payments through the back end processing company who funnels them as needed. If you have received a call from one of these companies, ask a few questions.

  • Who is the company and what is their contact information?
  • Who does the company represent?
  • What debt are they trying to collect or are having trouble processing?

In situations where you notice transactions on your account from these companies, request information directly from the back end processing company. They are able to answer your questions and provide necessary documentation.

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Debt Settlement Back End Processing