Collection management
Introduction
Collection is the process of securing payments of money or other agreed value owed to a creditor. The debtors can be natural persons or companies. An organization that specializes in debt collection is known as a collection agency or debt collector.[1] Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed.[2] Historically, debtors could face slavery, imprisonment, or other coercive collection methods. In the 19th century, in many countries, legislation regulated debt collectors. debts and limits harassment and practices considered unfair.
History
Debt collection has been around for as long as debt has existed and is older than the history of money itself, as it existed within previous barter-based systems. Debt collection dates back to ancient civilizations, beginning in Sumeria in 3000 BC. C. In these civilizations, if a debt was owed that could not be paid, the debtor and the debtor's spouse, children, or servants were forced into "debt slavery" until the creditor recovered the losses through his physical labor. Under Babylonian Law, the payment of debts was governed by strict guidelines, including several basic protections for debtors.
In some societies, debts could be transferred to subsequent generations and debt slavery would continue, but some early societies provided for periodic forgiveness of debt, for example as part of a "Jubilee (biblical)"), or set a time limit on a debt.[3].
The Bible issues severe restrictions regarding how much interest to charge on a loan, criticizing usury.[4] The Quran prohibits any amount of interest on loans given and encourages direct transactions.[5] The Abrahamic religions discouraged lending and prohibited creditors from charging interest on debts owed.[6].
In the occupied territories of the Roman Empire, tax collectors formed an incredibly profitable organization to increase the imperial treasury, as well as to line the pockets of the publicani. However, the process was plagued by corruption "Corruption (abuse of power)") and abuse of power.[7].
In the Middle Ages, Christianity emerged with an extreme condemnatory position, with specific laws emerging to deal with debtors.[6] If creditors could not collect a debt, they could take the debtor to court and obtain a judgment against the debtor. This resulted in the bailiff of the court going to the debtor's house and collecting property in lieu of the debt, or the debtor being remanded to debtor's prison until the debtor's family could pay the debt or until the creditor forgave him. In medieval England, a was a legal officer working for the bailiff, responsible for collecting debts, who often used coercive methods.[8].