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Stupid question

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dodgeball
Established Contributor

Stupid question

Why do all the collections agencys want check by phone instead of Credit Card?

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Message 1 of 4
3 REPLIES 3
IOBA
Senior Contributor

Re: Stupid question

Off the cuff....

 

1.   They have your checking account number if there are future "issues".

2.   They get their money relatively quickly.

3.   You can't (in theory) dispute the charge.

4.   It costs them nothing to process the check by phone.

5.   With a cc, there is a fee to the CA to process the cc.

6.   With a cc, you can dispute the charge and most likely win.

Message 2 of 4
js0319
Established Contributor

Re: Stupid question

There are fees associated with credit cards. Also, credit card charges can be disputed, and it's a lot harder for a check to be disputed because that information is usually communicated and authorized by the account holder.

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Message 3 of 4
pizzadude
Credit Mentor

Re: Stupid question


@IOBA wrote:

Off the cuff....

 

1.   They have your checking account number if there are future "issues".

2.   They get their money relatively quickly.

3.   You can't (in theory) dispute the charge.

4.   It costs them nothing to process the check by phone.

5.   With a cc, there is a fee to the CA to process the cc.

6.   With a cc, you can dispute the charge and most likely win.


+1.  

 

My advice is to always send them a money order ~ that way you retain your banking information, which to me is one of the biggest reasons not to do an ACH or personal check.

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Message 4 of 4
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