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What is a Collection Agency?

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How does Collection Agency work?

When a debtor defaults on its debt or misses scheduled loan payments, the lender reports the delinquency to a credit bureau. Then within 3 to 6 months of the default, the debt is turned over to a collection agency.

a) If the borrower pays

Suppose the collection agency can recover the debt successfully. In that case, the lender who hired it pays a certain percentage of the recovered fund in exchange for its collection effort.

b) If the borrower doesn’t pay

Suppose the collection agency cannot recover the debt. In that case, it usually updates the debtor’s credit report with a “collection” status that deteriorates the debtor’s credit score, which can potentially affect the debtor’s chances of getting a loan in the future.


Several federal laws bind third-party collection agencies; some of their rules and regulations are as follows.

Calls: Collection agencies are allowed to call the borrowers only between 8 a.m. and 9 p.m. Further, the agencies can’t call the borrowers if their employer doesn’t permit outside calls during office hours.

Mail: Collection agencies can send emails, but not postcards, as their content would be visible to others. In the case of letters, the envelopes shouldn’t include any language or logo identifying them as being from collection agencies.

Contacting friends and family: If a collection agency doesn’t have the borrower’s contact details, it allows one to contact the borrower’s friends and family. However, the agency is forbidden from revealing its identity to the relatives or discussing any aspect of the indebtedness with them.

Disclosure: Collection agencies must disclose their identity to the intended borrowers – who they are and what they should do to collect the debt.

Threats and obscenity: Collection agencies are not supposed to threaten or use profanity against borrowers. They are also prohibited from publicizing the borrowers’ situation.

How to Start a Collection Agency? 1. Understand the prerequisites of opening a collection agency

The legal requirements vary significantly based on the state where one intends to operate – each state has unique needs. Firstly, they should register within their state. Later it can register and possibly get licenses in other states too.

2. Learn about the various debt collection laws

Plenty of laws govern the actions of It, and each state has different rules and regulations. So, one must research to learn about the various debt collection laws. Some of the major federal laws that a collection agency must comply with include Gramm-Leach-Bliley Act (GLBA), Telephone Consumer Protection Act (TCPA), Health Insurance Portability and Accountability Act (HIPAA), Fair Credit Reporting Act (FCRA), and Fair Debt Collection Practices Act (FDCPA).

3. Plan out capital and operating expenses

The prospective collection agency must plan and arrange the capital required to complete the initial phase. After that, it needs to plan the operating expenses for the first 2-3 years – basic office supplies, salaries, and other operating expenses. Further, registration costs, obtaining necessary licenses & bonds, marketing, and securing clients should also be factored into the expenses. The costs would vary based on the number of states one intends to operate in.

4. Acquire collection agency bonds and debt collection licenses

Assign a registered agent in every state for which one has a Certificate of Authority. A Certificate of Authority can be acquired from the State level Secretary, and it contains important information about the business, such as its official name, name of the owners, legal status, etc.

Some states mandate Collection Agency Bonds as part of the licensing process. A Collection Agency Bond is usually involved if the agency recovers the creditor’s money but fails to remit the funds.

After acquiring the Certificate of Authority and Collection Agency Bond (if required), one can apply for the debt collection license.

Tips for Dealing

It is difficult to deal with collection agencies, but it can be managed with some strategy. Here are some tips that can help deal with collection agencies:

The borrowers must learn about their rights per the relevant debt collection laws. They should immediately contact the Consumer Financial Protection Bureau if the rules are violated.

The borrower should try to take control of the conversation, and he/ she shouldn’t agree to anything in the initial contact. Then, the borrower should collect the relevant information and set up a follow-up call with the collection agency.

If the borrower can pay the debt and it is the best option. Otherwise, the borrower can negotiate a payment plan with the collection agency that suits both parties.

Key Takeaways

Some of the key takeaways of the article are:

It is a third-party entity that creditors and lenders hire to recover their funds either in default or past due.

Several debt collection laws regulate the actions of collection agencies. These laws govern what they can do and what they can’t do.

To start, one needs to understand the prerequisites of opening the business, learn about the various debt collection laws, plan out capital and operating expenses, and acquire collection agency bonds & debt collection licenses.


So, it can be seen that collection agencies are an important part of any banking system as it aids in the recovery of bad loans. These agencies have their own set of rules and regulations that govern their actions. Several collection agencies are available, and lenders or creditors should choose any collection agency based on their specific requirements.

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Who Can Start A Not

What is a Not-For-Profit Organization?

The term “not-for-profit organization” refers to an organization that doesn’t generate profits for its members; instead, all the earnings and donations are used towards its objectives.

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Unlike profit-making organizations, these entities don’t usually perform any credit transactions. Hence, they are not required to maintain any credit records or accounts for profit & loss. However, they keep track of the uses and sources of funds to assess their financial position at the end of the fiscal year.

Characteristics of a Not-For-Profit Organization

A few distinctive characteristics make not-for-profit organizations different from for-profit organizations.

They primarily establish themselves to offer services (such as healthcare, education, shelter, etc.) to a specific section of society free of charge or at a very nominal price.

The members elect an executive committee or managing committee and is responsible for the day-to-day operations of this type of organization.

The members of these organizations, formed as charitable trusts or societies, actively contribute to running the operations by extending subscriptions.

These organizations’ primary sources of income include subscriptions, donations, government grants, legacies, and incomes from investments.

The capital fund receives a credit when the sources of funds exceed the uses in any particular, fiscal year.

These organizations are usually known for contributing to society and not so much for their members’ goodwill.

Examples of Not-For-Profit Organizations

The following are real-life examples of not-for-profit organizations:

British Heart Foundation Cancer Research UK Types of Not-For-Profit Organizations

The following three types broadly divide not-for-profit organizations.

1. Social Advocacy Organizations

These organizations were formed to promote a particular social cause and name. They usually organize fundraising events and conduct other measures to raise public awareness to encourage them to support their cause. These organizations use membership dues and donations from public and corporate entities to fund their cause. These organizations fall under the 501 (c)(4) category of the US Internal Revenue Service for tax purposes.

2. Trade Organizations

These organizations improve the business conditions of their members. They usually raise funds through membership dues. Some of the most common examples of trade organizations include real estate boards, chambers of commerce, and health workers’ organizations.

3. Foundations

Affluent individuals or corporates usually start these entities to fund and support a particular social cause. They must donate some of their income to retain their not-for-profit status. Foundations can be classified into two major types – private and public.

Individuals, families, or corporations can start private foundations. However, these entities must meet the payout requirement and maintain a list of grants paid out every year.

Public foundations receive aid from different sources, such as individuals, corporates, or other foundations. They actively engage in various social initiatives, including providing homeless shelters.

Who can Start a Not-For-Profit Organization? Benefits of Forming a Not-For-Profit Organization

Some of the major benefits of forming a not-for-profit organization are as follows:

These organizations benefit from exemption from paying income taxes, enabling them to divert all their income towards businesses to achieve their goals.

Since these organizations work hard to improve society, they receive government favors through grants, one of their biggest sources of income.

It gives great fulfillment and personal satisfaction to people who work for society and its welfare.

The board members of these organizations have limited liabilities, which means they are not personally liable for the organizations’ arrears, debts, and other obligations.

Key Takeaways

Some of the key takeaways of the article are:

A not-for-profit organization utilizes all its funds to pursue its objectives, either earned or donated.

This type of organization doesn’t share its surplus among the group members; instead, it gets credited to the capital fund.

Many not-for-profit organizations use business and management techniques similar to for-profit organizations to run their operations.


So, it can be seen that not-for-profit organizations are set up to mitigate a particular social cause. These organizations have no profit-making motives, and their sole objective is the betterment of society. Anybody who intends to serve society and has a business plan can set up a not-for-profit organization.

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Things To Consider Before Hiring A Web Design Agency For Your Business

One of the most crucial aspects of making a business thrive is getting the right website done. We live in a day and age where having a digital presence for business becomes a must.

Are you a business seeking to build a digital presence of your own? Then it is highly important that you have the right people to come in and help you establish the perfect online presence.

When it comes to creating website experiences, nothing serves the purpose as remarkably as a website design agency and hiring the right one will ensure your business turns into a success story.

But how should business owners conclude which is the best web design agency to hire for the job? Here are a few prerequisites which I want to share with everyone.

By adhering to the following practices, you will surely be able to find the right web design agency.

Hiring a Web Design Agency for Your Business 1. Choose a Web Design Agency Relevant to Your Business

Most business owners are preoccupied with a series of tasks and they hardly have enough time to find out which web design agency is the best option for their digital businesses.

When it comes to website designing, they take the burden off their shoulders by hiring a professional website development company New york. They let them take the creative edge and build them a solution.

Hence, when you as a business owner aim to choose a website design agency, make sure you pick the one that equally compliments your business practices and know your niche for the better.

Also read: Best 12 Vocabulary Building Apps for Adults 2023?

2. Identify How Much Experience Does the Web Design Agency Hold?

So before you proceed with hiring a particular web design agency for your business, make sure to identify how many years of experience they have when it comes to creating websites.

Some work in the local market only, while others prefer to work in the international market as well.

Perform a thorough analysis of the web design agency before you conclude they are the right choice.

The more experienced your web design agency is, the more better they can understand the needs and wants of the average audience interested in purchasing a digital service from your platform.

If you find a web design agency which is famous then it’s a surplus for you.

3. Is the Web Design Agency Well Versed and working in coherence with the Modern Trends?

Just as much as creating a website is paramount, so is the fact that you create a website which compliments the modern day web design trends.

When you create a website design company which is in accordance with the latest trends, it increases the chances of your website to appear in front of your desired target audiences.

By leveraging the power of the latest technology tools and modern web design, businesses can easily capitalize on gaining more customers.

4. Understand the Type of Website Design Process they Follow

If you want to create an impact, focus on the procedure which is to be followed. Ask your website design agency what methods do they implement to create the website design for their customers.

When you are working with a stable web design agency firm, it takes you through an appropriate process. By becoming coherent with the design process, you get the chance of yielding extraordinary outcomes.

Some follow the agile methodology and split the website design in variable phases before they start with the development process. Similarly, many different organizations follow different processes.

By getting acquainted with such processes, a business owner can have the comfort and peace of working with a web design agency that is accustomed with the modern methodologies.

5. How Much Would it Cost and What is Your Website Design Budget?

When choosing a website design agency, make sure to consider both, how much are they charging you for the design job, and what is your overall budget limit? Ask yourself a series of questions:

How much do you think you’re ready to spend for the website?

Are they charging you by the hourly rate, or have they opt-in for a single-time payment?

Do they offer website revisions or is it just going to be a one time delivery?

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6. Ask Them to Submit their Previous Case Studies

Lastly, every experienced website design agency operating in the digital landscape has a list of successful client stories to tell.

If a design agency which you’re about to onboard doesn’t have a strong portfolio to show you, they are not likely the kind of people you’re supposed to hire for the site.

Ask the web design agency to show you some of their previous works. If you can get in touch with one of the clients, it can be better for you to understand their process of web design.

By analyzing their previous work, and by learning how they proceed, you will get a better idea on how things are done by them. You will ultimately be able to make more informed decisions.

So there you go, here are some of the prerequisites that you need to pay attention to when you’re hiring a web design agency to create you a thriving digital experience.

How To Start Meal Prepping Ahead Of A Busy Week

Sadly, because humans are not like alligators and eat several times a day, we inevitably spend a lot of our waking hours cooking meals. 

There are different approaches you can take—from making one or two recipes at a time to making everything you’ll eat for a month at once. It can be as simple or as elaborate as you want it to be.

Meal prepping 101

Before you get started with meal prepping, there are a few things that you’ll need. 

Somewhere to store your food

A freezer is your best option. Set at or below zero degrees Fahrenheit to inactivate any bacteria, mold, or yeast and prevent it from spoiling your food. According to Julie Garden-Robinson, professor of nutrition and food safety at North Dakota State University, freezing is one of the best ways to preserve food, helping it keep more of the original color, flavor, texture, and nutrients. 

[Related: The best way to freeze fresh meat]

Like many meal preppers, I have a dedicated freezer at home, but your refrigerator freezer will work fine as long as you manage the space. If you don’t have and don’t want to get a freezer, then storing the extra food in your fridge works, too—you just need to make sure you eat it before it goes bad. 

On that same note, always make sure to safely defrost food by thawing it in the refrigerator, in cold water, or in the microwave rather than just leaving it out on the counter where bacteria can grow.

Food-safe packaging

You’ll need to make sure that your packaging is food-safe and freezer-safe. My wife and I find that gallon-sized freezer bags work fantastic, as do freezer-safe food containers. We also invested in a vacuum sealer system, which optimizes space, but also keeps food fresh while frozen by removing the air that can lead to freezer burn. 

For smaller-use items, like diced jalapenos or garlic, we’ll actually freeze them in ice cube trays, creating individual portions to pop out of the freezer and directly into the pan.

Label your prepped meals and ingredients

Frozen foods are sometimes hard to identify in the package. I can’t tell you how many times I’ve lost a game of “is this spaghetti sauce or chili?” This is why it’s crucial to label each and every container you put in your freezer. 

Double cook freezer-friendly meals

The most straightforward meal prep is to make two of the same dishes at the same time and freeze one of them, which is what I do most often. The goal is always to save yourself the most labor-intensive parts of cooking in the future, so your second meal doesn’t require much beyond thawing. 

Usually, doubling the volume of a recipe only requires a little extra time and a few more ingredients, but you don’t have to limit yourself—you can make as many batches as your prepper heart desires. Just keep in mind that the more meals you get out of it, the more ingredients you’ll need and the longer it’ll take you to prepare.

An easy meal to double-up is meatloaf. Most of the work in this recipe is mixing everything together and forming the loaf into the pan, so it’s just a matter of mixing up four pounds of meat instead of three and making two loaves instead of one. The only real extra time is chopping some extra veggies. 

Freeze the second meatloaf raw in a heat-proof baking dish lined with parchment paper (you can skip the sauce since it’s easy to make and better fresh). When you want meatloaf again, mix up the sauce, pour it over the frozen loaf, let the pan come up to room temperature, and pop it in the oven at 350 degrees Fahrenheit for 45 to 60 minutes. The easiest meal you’ll ever make. 

It’s also a great idea to double batch chili and spaghetti sauce, which you can fully cook before freezing in rigid plastic containers. When you need them, you can defrost them in the microwave or, as I prefer, in a pot on the stove.

Finally, for meals that require lots of measured ingredients, you can double batch the spice or make sauce packets. For recipes like butter chicken and Asian lettuce wraps, for example, it can take up to fifteen minutes just to peel and dice the garlic, shred the ginger, and measure out the various other spices and liquids. If you have the packets already made, you can thaw them and dump them in with the meat and veggies while they cook. If you use a multi-cooker, you can even just walk away until it’s ready. 

Other meals that we commonly double or triple up on are: 

Enchilada casserole


Homemade bagels

Breakfast sandwiches


Prep common ingredients or tasks

Another strategy is to focus on batching out ingredients and common tasks rather than specific meals. Chopping vegetables, for example, is one of the most time-consuming parts of most meals. But once you’re doing it, adding a few carrots and onions is not a big deal. My wife and I will dedicate a few hours on Sunday afternoon to doing all of our cutting for the week at once while watching football.

You can make this even more efficient by using a food processor or blender—you’ll get a lot done and you’ll only have to set up and clean the machine once. 

[Related: Best food processor: Chop your way to easy meal prep]

You can also do this with meat. If you’re having tacos and spaghetti in the same week, for example, you can brown several pounds of ground turkey or beef, and season it appropriately when you need to warm it up. Similarly, you can grill a couple of pounds of chicken breast that you can eat as is, chop to use later on a chicken salad, or shred to add to chicken in tacos. 

Batching out time-consuming tasks for the whole week can make each night’s cooking a lot easier to face. With a little bit of planning, you can take some of the pressure off and still have a delicious home-cooked meal. 

Some Interesting Facts About Working Of A Search Engine Marketing Agency

You must contemplate the needs and requirements of entrepreneurs while implementing the agendas. Distinct benefits are associated with search engine marketing agencies, which entrepreneurs must investigate.

How do search engine marketing techniques work for your firm?

As stated earlier, this technique comes with a lot of use when you do it right. Irrespective of your firm’s nature and size, there is a lot that a search engine marketing agency can do for your venture. Hence, infer the following points in proper details

Things you must avoid while engaging in an SEO campaign

Also read: Best Oculus Quest 2 Accessories To Bring Home (Its Upgrade Time For Meta Quest 2)

Hence, there are some tendencies you have to abstain from while working with this strategy

Needy campaign structure: it is one of the biggest and common tendencies of entrepreneurs that lead to an impoverished campaign framework. Keep in mind that proper structuring of the campaign will provide you with an opportunity to increase flexibility and thereby control your audiences. It allows you to comprehend what is working and what is not.

Duplication of keyword: keywords play an integral role when it comes to search engine marketing techniques. It is an art that starts selecting the right keyword and, thereby matching it, with your campaign. For this, you have to focus on the theme as well as the group. If you use the same keyword for multiple ad groups, it will not work effectively. Hence, you have to be innovative while working with the keyword.

Apart from this, not following adequate policies, failing to test your performance, and lack of strategy is some wrong entrepreneurs’ tendencies.

Keep in mind that self-managed campaigns may look like a great way of saving money. However, the dynamism of the industry must be kept in mind.

There are SEM professionals available in the market to provide you with reliable assistance. All you need to do is, get in contact with them, and devise a proper plan for your venture.

It would help if you learned the working mechanism of SEO agencies to proliferate. Try to garner knowledge about the latest SEO techniques as it can help you grow considerably.

Trudy seeger

I am Digital Marketer with 6+ years of experience from different industries. I take a performance-driven approach and leverage my SEO expertise strategically to enable consistent organic growth and brand exposure amplification.

How To Start, Pause And Stop A Workout On Apple Watch

The Apple Watch offers a multitude of features, including heart rate and step tracking, noise detection, fall detection, ECG detection and more. However many users do not know how to start a workout on the Apple Watch and instead just anticipate that the Watch will start recording activity by itself. In this guide, we’ll cover how to start, pause and stop a workout and how to get a detailed analysis of a workout.

How to Start a Workout

1. On your Apple Watch, press the Digital Crown button to open up the app screen.

2. Open up the Workout app. You’ll find a list of different exercises.

3. Select the workout you’re about to perform. This will automatically start recording the workout. Depending on the type, the Watch may measure the distance covered, heart rate, calories burned, etc. Note that any distance covered will only be recorded if Location Services is enabled.

How to Pause a Workout

To pause a workout:

1. Swipe right on the workout screen on your Apple Watch.

2. Tap on Pause.

To resume a workout, similarly swipe right and tap on the Resume button.

Here, if you tap on the “New” button, you’ll be able to add another type of activity to your workout. It’s specifically helpful if you’re doing circuit training, such as including running, cycling, and strength training all in the same workout. After tapping “New,” select the new activity, and the time starts over at 0. If you want to add a third activity, repeat this process.

How to End a Workout

To end a workout, simply swipe right from the Workout screen and tap on “End”. This will end the workout and will present you a brief summary of your workout. All activities will be presented here if you did more than one. Additonally, the total time will include all activities together.

To view a full summary of your workout:

1. Navigate to the Activity app on your iPhone.

2. From the bottom tabs, select “Workouts.”

3. Select the workout you want to view. This will give you an in-detail analysis of your workout.

How to Change Workout Metrics

By default, you’ll only get to view only five metrics during a workout on your Apple Watch. However you can customize these according to your liking. To customize the viewable workout metrics:

1. Open the Apple Watch app on your iPhone.

3. Tap “Multiple Metric” or “Single Metric.” If you choose Multiple Metric, you can choose up to five metrics to view on each workout.

4. Select the workout you’d like to edit. Tap on Edit in the top right corner, and add/remove metrics to your liking.

Using the tips above, you can use your Apple watch properly for workouts. You can also choose to generate reports of your Apple Watch activity at the end of every month.

Shujaa Imran

Shujaa Imran is MakeTechEasier’s resident Mac tutorial writer. He’s currently training to follow his other passion become a commercial pilot. You can check his content out on Youtube

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