What is a debt collection mediation?

Debt collection mediation is a process of dispute resolution where a neutral third party attempts to help two or more parties reach a mutually agreeable outcome. It is used when a creditor (the party that has loaned money) and debtor (the party that has borrowed money) are unable to come to an agreement on how the debt should be paid back. This could happen if the debtor has been unable to make payments, or if the creditor believes the debtor can afford to pay back more than what is being offered. In debt collection mediation, the parties involved will meet with a neutral mediator who will listen to each side’s concerns, provide information to both sides, and facilitate a discussion between the parties to help them reach a resolution. It is a voluntary process and both parties must agree to it. The mediator cannot force the parties to reach an agreement, but rather can help them come to a mutually beneficial outcome that both sides can accept. The goal is to help both parties avoid lengthy legal proceedings, which can cost them both time and money.

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What is a debt collection mediation?

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