Central Coast College Debt Collection Terminology

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