Assignment of Debt

An assignment of a debt is an agreement between a creditor who is owed money and a debt collector. It provides the debt collector the authority and tools needed to put the maximum amount of lawful pressure on the debtor to pay the money owed.


The assignment sets forth in writing now much the debt collector will be paid from the amount collected and provides an incentive for the collector to spend its time and money to collect the debt.


Most importantly, an assignment provides the collection company with the legal authority to inform the debtor that it has the absolute power to file a lawsuit against the debtor immediately without having to hire and pay an attorney or obtain the consent of the original creditor. An assignment is a very powerful tool.


Generally, whenever a debtor consults with an attorney and the attorney learns that the debt has been assigned to a firm like Pacific Rim Commercial Collections, the attorney will advise the debtor that we are fully committed to collecting the debt and that we will not give up until it is paid.


Pacific Rim Commercial Collections