DEBT COLLECTION TECHNIQUES PART ONE
Collection techniques can vary greatly from business to business, and can vary based on the type of debt being collected. With that being said however there are some basics in the techniques used by Debt Attorneys. Business' of all types can follow these basic steps in the debt collection process. First send a pre-collection letter. A business can then choose to either decide whether they will attempt to collect the debt themselves, or hire an outside collection agency.Most business' avoid collection practices internally as they don’t want to be considered “the bad guy”. Many feel that they will damage the relationship they have with their clients and prefer to pay a nominal fee to a collection attorney to send a notice asking for payment.
TYPES OF COLLECTION ATTORNEYS PART 3
Health Care Collection Attorneys collect on medical debt. These types of debt are high in collection attorneys, because normally the providers of care are too busy to spend time trying to collect on owed debt. The attorney normally will collect on these types of debt for a percentage of the amount owed. Similar to these are the retail collection attorneys which use a similar strategy to collect on department stores, utility companies, and other types of retail businesses.Bad check recovery is the final type of debt collection. The bad check is technically the signed agreement that money is owed. A creditor can collect this type of debt under fraud laws. Normally debtors will pay this type of debt rather quickly when pressed as passing a bad check can result in criminal prosecution.Collection attorneys have several methods of collecting on bad debt. Normally letters begin the process, but as these kind requests are ignored phone calls begin and the persistent calls from collection agencies help in soliciting payments from debtors.
TYPES OF COLLECTION ATTORNEYS PART 2
First type collects financial debt. This is normally for money that is owed to banks, and other types of financial institutions. This could include car loans, mortgages, and credit card debt. These collection attorneys normally purchase the debt from creditors for a small amount and then collect the balances due, hence collecting more than they paid for the debt. Banks sell these debts when they feel that they cannot successfully collect the debt.
