You know for a fact that the money is in big corporations and that's the reason why we make it a point to do business with them. But currently it seems that even these large corporations are likely to pay on time. Long gone were the days when companies make payments even before their accounts fall due. Though it may sound unfair to generalize majority of these big corporations for there are still those clients who really pay on time, there has been a growing number of companies having more and more delinquent paying clients.
If you have grown tired of collecting past due accounts or if you do not wish to undertake the process of recovering these unpaid debts, you can transfer the task of collecting to debt collection agencies. Don't worry about only having a meager amount to be collected. These collection agencies would accept even small business debts and are charging very reasonable rates. Some are even expanding their services and are offering accounts receivable management.
The collection services offered by a collection agency go through several phases. In the initial stage, sometimes only a letter or two is given to these delinquent payers to coax and gently nudge a slow-pay. If they are unsuccessful by means of collection letters, they then employ their collection professionals to work on the matter. A collector will work closely with you as sort of an extension of your staff, giving updates on the status and ensuring the recovery of the claim. When letters and collection calls do not bring in positive results, their network of lawyers specializing in collections and collection litigation come into the picture and will provide you with the necessary representation if you require it. These agencies also entrust the help of collection bureaus to ensure recovery of claims.
Be very selective though in choosing your collection agency for it will have a significant impact on your business reputation. While price is an important factor to consider in your selection process, you also have to take a look at a collection agency's services, reputation, and recovery rates that will be applied to the collected account. Ensure that the agency complies with the Fair Debt Collection Practices Act and Fair Credit Reporting Act. Choose a collection agency that can represent you in a professional manner.
Perhaps you are having difficulties dealing with the collection agencies. It is important to remember first to be polite when dealing with them, doing everything that you can to make a negotiation possible. When you have done this, and they are still harassing you beyond the boundaries that are set by the Fair Debt Collection Act, or the FDCA, then it is time for you to take appropriate measures to see that they are punished in some way for their illegal actions.
There are several things that you need to do to make sure that you have a stable case. It is important that you bring to court the appropriate evidence that will help you to prove the wrong that has been done against you by the collection agencies. If you do not come up with the proper verification, you cannot have a stable enough case to sue the collection agency, whether they really were harassing you or not.
In order to prove that collection agencies are doing something that is in violation of your rights, you have to plan ahead of time. Before they even call or contact you again, you need to have a pen and paper on hand to write down who you spoke with, what day it was, and what time they called you. It is important to have details like this in order to build a strong case against the collection agency.
You must be cautious if you are recording a collection agency's phone call to make sure that you do it legally. You must tell the person you are talking to that you are recording your conversation, and why. Tell them that it is to protect your rights as stated by the FDCPA. That way, there are no legal hassles about whether or not they consented to your recording of the conversation, because if they keep talking after you've said that, you may assume that they have consented to it because you told them clearly what you were doing.
Once you have the proper evidence that will bring to the table a legitimate argument against the collection agency, you can take the action to file the complaint. You do this by contacting the attorney general's office. Most likely, you will want to do this by writing a formal letter, rather than any other form of communication.
Here are a few tips to help you write your letter: When you are writing your letter, make sure that you do not beat around the bush. It is important to get straight to the point. When you state what the collection agency did wrong, you must back it up by stating the rights that were violated under the FDCA. Do not just complain about them constantly calling you. It is their job. If they have not violated any of the rules stated in the FDCA, then you will have no legitimate argument, resulting in your losing the case.
Both Tristan Andrews & are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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