When it comes to trying to recover unpaid accounts from your debtors, the myriad of debt collection laws can sometimes feel as though theyre getting in the way. Obviously your main goal is to try and encourage as many late-paying account holders as possible to pay their debts and help keep your business cash flow strong.
Reaching Your Customers - Do you know what the parameters are when it comes to trying to contact your customers? The Fair Debt Collection Practices Act regulates and protects debtors from certain kinds of communications from creditors.
Basically this means that the hours in which youre allowed to contact debtors are limited, so you need to be sure you make your calls during the allowed times. You may also find that there are strictures placed on where youre able to contact customers regarding payment of their outstanding debts.
If for some reason you need to contact a third party to try and reach the original debtor, then youre also restricted to only asking for information concerning the best ways to reach the actual debtor.
Disputes About Debt Ownership - There may be situations when a debtor may deny owning the debt in question, or that they owe you any money. When this happens, you will need to provide written verification and proof of the alleged debt.
Correct Information - It is important that you give accurate and truthful information to your debtor. This means you cant imply that youll involve law enforcement to arrest them, nor can you give the false impression that you may have legal representation working on your business. You are also under obligation not to falsely imply that you have any government agent chasing after them.
You're permitted to only give accurate information about the debt, and all your collection tactics must abide by the debt collection agency laws at all times. If you found in violation, your debtors have the right to sue you, and could potentially collect as much as 1 percent of the collector's net worth.
Its vitally important for your business that you understand debt collection laws as they relate to your collection procedures. Collection agency laws may extend beyond simply getting customers to pay their unpaid bills.
You should also learn how changes to the Fair Debt Collection Act relates to a customer's access to credit reporting information. Should the customer wish to verify information contained in their credit report, you will need to ensure that the information you provide is always accurate. Not adhering to these laws, business owners could face fines, and in some instances, the debt owed to them might be discharged.
Debt collection is a difficult process, but as long as you stay abreast of the debt collection laws, collection agency laws and how these determine the actions you can take legally to recover the money owed to you, then you may find it not as difficult as it might sound.
Learning about the things you are allowed to do legally can also help you to build debt collection strategies that means youre able to contact your debtor properly and collect on the debt owed to you.
Reaching Your Customers - Do you know what the parameters are when it comes to trying to contact your customers? The Fair Debt Collection Practices Act regulates and protects debtors from certain kinds of communications from creditors.
Basically this means that the hours in which youre allowed to contact debtors are limited, so you need to be sure you make your calls during the allowed times. You may also find that there are strictures placed on where youre able to contact customers regarding payment of their outstanding debts.
If for some reason you need to contact a third party to try and reach the original debtor, then youre also restricted to only asking for information concerning the best ways to reach the actual debtor.
Disputes About Debt Ownership - There may be situations when a debtor may deny owning the debt in question, or that they owe you any money. When this happens, you will need to provide written verification and proof of the alleged debt.
Correct Information - It is important that you give accurate and truthful information to your debtor. This means you cant imply that youll involve law enforcement to arrest them, nor can you give the false impression that you may have legal representation working on your business. You are also under obligation not to falsely imply that you have any government agent chasing after them.
You're permitted to only give accurate information about the debt, and all your collection tactics must abide by the debt collection agency laws at all times. If you found in violation, your debtors have the right to sue you, and could potentially collect as much as 1 percent of the collector's net worth.
Its vitally important for your business that you understand debt collection laws as they relate to your collection procedures. Collection agency laws may extend beyond simply getting customers to pay their unpaid bills.
You should also learn how changes to the Fair Debt Collection Act relates to a customer's access to credit reporting information. Should the customer wish to verify information contained in their credit report, you will need to ensure that the information you provide is always accurate. Not adhering to these laws, business owners could face fines, and in some instances, the debt owed to them might be discharged.
Debt collection is a difficult process, but as long as you stay abreast of the debt collection laws, collection agency laws and how these determine the actions you can take legally to recover the money owed to you, then you may find it not as difficult as it might sound.
Learning about the things you are allowed to do legally can also help you to build debt collection strategies that means youre able to contact your debtor properly and collect on the debt owed to you.
About the Author:
David P. Montana has been a prominent industry expert, business advisor and author for over three decades on the subject of collection agencies. He provides more useful tips and information on debt collection laws.
