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Debt collection can be traced back to the history of debt itself. Financial exchanges have been defined by different aspects of human communities’ psychosocial and cultural development. It is interesting to take note of changes that happened since the invention of money and the implications of such a representation in the dynamics between parties. The possibility of inequality and discrepancy among the various capacities of individuals and families to respond to the demands of the market was very much a reality even during ancient times and after civilizations were established. Borrowing and lending money have been financial activities that became commonplace.
Debt collection agencies are relatively new and have been a part of the progression of institutionalizing and professionalizing that aspect of the financial world. Since the beginning of the civilized world, the relationship between debtors and creditors have been defined by society, putting in place several guidelines as to how they should conduct business. Punishment for non-payment of debts depended on social conventions. They included different alternatives to what was owed: from usual collaterals to slavery. In colonial America, debtors prison was the usual destination for those with not enough collateral. The conditions and punishments were harsh. Those were the methods used to ensure payment of loans.
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Before the modern history of debt collection, many lenders limited loaning to secure loans. The earlier reliance on physical punishments had proven to be insufficient and ineffective in the collection process. Not until the latter decades of the 20th century have collection agencies been a part of the whole industry.
For more than 30 years, Brennan & Clark LLC has been providing clients effective collection strategies focused on successful account recovery. It offers receivable support solutions that help clients eliminate credit losses. The firm has a management staff with more than three decades of experience in the industry, and the expertise to guarantee higher than average recovery rates in the industry. For more on debt collection, visit this blog.
