Central Coast College Debt Collection Terminology
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Acceptable Debt Collection Phone Call Hours
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9am - 8pm
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Aging Report
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A report that shows the time span between issuing an invoice and receiving payment.
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Audit
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Methodical review of an account.
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Bankruptcy
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A legal proceeding that declares a debtor is financially unable to pay a debt.
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Cash Flow
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The process of a business' inflow and outflow of money.
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Certified Mail
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A service provided by the postal service that provides proof of delivery to the sender.
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CFDCPA
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California Fair Debt Collection Practices Act: California's law that governs debt collection practices.
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Coinsurance
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The portion of charges that an insured person must pay for health care services.
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Collateral
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Property acceptable as security for a loan or other obligation.
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Collecting
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The process of identifying what is due for a service and receiving payment.
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Collection Agency
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A company that specializes in collecting debt for businesses.
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Collector
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A business' employee that is attempting to collect a debt.
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Copay/Copayment
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An amount that a health plan requires a patient to pay at the time of service.
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Debt
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An obligation to pay for something owed, such as money owed for goods or services.
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Debtor
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A customer that owes a debt.
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Deductible
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An amount that an insured person must pay, usually each year, before an insurance company will be responsible for paying.
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Delinquent
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An payment or account that is Past-Due.
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Dun
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The process of persistently requesting payment.
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EOB and RA (Explanation of Benefits or Remittance Advice)
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Documents from an insurance company that shows how a patient's medical benefit was determined.
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FDCPA
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The Fair Debt Collection Practices Act: The primary U.S. federal law governing debt collection practices.
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Final Notice
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One of the last steps in the collection process. Usually explains to the debtor the negative consequences for letting the debt remain unpaid.
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Payment Plan
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A plan agreed to by the business and debtor that outlines the timing and amount of payments due on a debt.
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Secured Debt
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A debt where collateral has been offered if the debt goes unpaid.
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Unsecured Debt
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Debts where there is no collateral, for example medical debts, credit given by a business for goods and services, credit card debts.
