Creating a Written Debt Collection Policy Part 2 of 3

Debt is something that many individuals struggle with. If you fall behind on payments or simply forget to pay a bill that is sent to collections, you do not need to panic. Debt collection is a process that can be pretty intimidating once you start receiving letters in the mail. However, the process of collecting a debt is regulated and a debt collection attorney in Florida can inform you of your rights. Panic is a normal response, but before you freak out it is important to know what your next move should be.

Get It In Writing

Whenever you are contacted by a third party about a debt it is essential that you request information in writing that indicates the actual debt owed. This information must be delivered within 5 days of the request. This notice should include vital information including the amount owed and the creditor that the debt is owed to.

You should also be given instructions that detail your options if you feel the debt is not owed. Instead of calling, it is best to ask for a written request that you can review for accuracy. Debt collection is a tedious process and this is simply the first step. Whenever you request this verification information you should always send it through verified mail. This will ensure that the recipient can’t deny receiving the written notice.

Keep Records

When dealing with the debt collection process it is really important to keep records of everything. This includes all information sent to you in the mail about a given debt, but also all phone calls that take place with a debt collector. This will ensure that you will always have access to the records you need to substantiate any claims that are made. Be sure to track the dates of all phone conversations and even keep track of the name of the person that you are speaking with. The more information that you have will only benefit you in the future.

Why Does It Matter?

There are guidelines and restrictions in place when it comes to debt collection tactics. This means that the paper trail and records that you are keeping will come in handy and be necessary if it turns out that the debt collector you are dealing with breaks the law in any capacity. Remember that even if you owe a debt you still have rights.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Creating a Written Debt Collection Policy Part 1 of 3

The debt collection process, especially when you need to involve a debt collection attorney, is greatly streamlined when our clients have a clear Debt Collection Policy.

We offer here some guidelines to help you to create your own debt collection policy manual.


Policies are in place to improve clarity and limit confusion. This means that debt collection policies can be an effective tool that holds value. Collecting a debt is not something that is done in uniform fashion, which means that a written policy has the ability to remove subjectivity. All credit decisions that are made will be based on policy that has been thought out and approved by all parties involved. This makes the job of a debt collection attorney in Florida much easier. Policy simply allows for protocol to be followed and gives guidelines.

Why a Written Policy is Best

A written policy is the only way for debt collection procedure to stay structured and not change over time. This means that continuity will stay in place no matter what happens within your business structure. This is due to the fact that staff will change, but procedure will remain unaffected. Now all decisions in reference to debt will be consistent and fair, because no biases will be used during the decision making process. Collecting a debt should be a uniform procedure that does not vary greatly. All customers being treated equally in relation to debt is the ideal outcome that a written policy helps to achieve.

Up To Date Policies Are Most Effective

When it comes to a written policy on debt collection, it is important for updates to occur regularly. The way that debt is collected changes over time slightly, so policy will not stay exactly the same forever. Minor changes that are made regularly will allow for the most effective debt collection results. It is also important to keep all employees up to date on all changes to procedure to ensure that all parties are on the same page. This will limit confusion and possible mistakes.
What Should a Written Policy Contain?
The type of information that should be included in your debt collection policy varies, but there are a few guidelines to follow. You should make it clear the type of credit application that is required and if a personal guarantee is applicable. It should also include information regarding financial statements and if these are a requirement. The terms of sale and extended dating procedures should also be outlined to remove any confusion that may exist in reference to these topics. A written policy is the best way to make sure that debt collection is most effective.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your finances in your 60's

Now it starts.  The Golden Years.  These are the years you worked for.  Your kids are off and totally self sufficient.  You have some financial security because you kept up the discipline of saving.  All the experience of the years behind you are now leveraged with some choices about working or not, and leisure time.   You may still have another 20 to 30 years ahead to rely on your savings.. this is not the time to sit back and rest on your laurels.

Cautions

1. Be aware of overspending in early retirement, budget with caution.
2. Swear off credit cards and any new debt.
3. This is not the last chapter, its the first chapter in a new book, that's a continuation of a series you have really enjoyed.  There's still lots of opportunity to grow your wealth, lots of need to continue to exercise discipline, and lots of time to enjoy the rewards of a life well spent.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your finances in your 50's

Typically, people tend to hit their stride in their 50's.  The mad dash to the top has leveled out.  The youthful exuberance in spending has been tempered.  The kids have started to move on with their lives.  This is a time when temptations run high to give yourself those "luxuries" that were forsaken for the kids ballet lessons,  the minivan, and summer camps.   Too often, couples falter just short of the finish line during this time.  All the discipline that got you to where you are gets relaxed.  Keep focussed, your retirement years are just barely ahead of you.  You will need those savings.

Cautions

1. Don't quit prematurely, your savings need to cary you through your retirement for another 2 or 3 decades.
2. If you decide to branch out on your own, entrepreneurial style, this tends to be safe years to do it in with the experience and knowledge you have gained, but be sure to have a safety net, at least a year of living expenses and lots of insurance.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your finances in your Forties

Your forties tend to be very difficult years, filled with large expense "spikes" as the kids grow into teenagers, and prepare for college.   Expense spikes tend to unfortunately be funded with credit cards and lines of credit tied to houses.  Balances are often not paid off, to make room for the additional payments that this borrowing pattern creates.

Cautions

1. Buy a smaller house to reduce not only your mortgage, but utilities and the cost of maintaining the home.  Keep your real estate budget to not more than 3 times your annual salary.
2. Use salary increases for savings.  Last year you made it, if you got a 3% raise, bank it, invest it, continue to live at last years standard of living because there's going to be a lot of unexpected expenses demanding attention from that savings pot you have been building.
3. Insurance is critical, make sure you have enough insurance to cover the holes in the financial bucket caused by unexpected illness, and death in the family.  

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your finances in your 30's

Thirties.. usually the 3 big M - "Marriage" "Mini You's" "Mortgage"

The typical wedding,  starts at $25,000 - WOW.

For middle America, each child will cost a whopping  $241,080 for their first 18 years - NOT including collect  (U.S. Department of Agriculture).

These years mark the first of the "all grown up" expenses, and can be extremely expensive.  They tend to also be marked by rapidly growing income, which breeds a tendency towards spending beyond your means.

Cautions.

1. Listen to advise from loan advisors so that you focus not only on today's expenses, but the real long term expenses of your mortgage.
2. No matter how tempting, try to be conservative about your wedding expenses, its about your life together, not paying for one day for the rest of your life.
3. Keep saving, remember those good habits from your 20's, now you are starting to earn good money, that discipline is going to start really paying off.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Managing your Finances in your 20's

For most, an exciting decade.   You are probably working and making real money for the first time in your life  You have money, but likely not responsibility.  There's money in your pockets, but not a life experience of the discipline on how to manage it.

Your biggest expense, if you went, is college.  Congratulations in addition to your first money, the first debt is now pressing down.

In all likelihood.. there's a shiny set of wheels, better known as your first car.

Finance Cautions

Watch out for student loans.  These are debts you will cary for ever, not usually dischargeable even in bankruptcy.  Do all you can to save money on college expenses, explore every scholarship, shop interest rates.  Keep a part time job, live off campus, whatever it takes.   Many leave college with 8 figure debt, in an uncertain job market.

Start good habits early.  Start now when your obligations and responsibilities are small to put 15% of your income into some form of savings or investment.  This is a habbit that can follow you for life.  Starting saving early, and relyling on compounding interest can make you wealthy, regardless of your career path.

Go easy on your first car - the new cars can loose 20% and more in value the day you drive them off the lot.

There will be companies working very hard to get you to sign up for credit.  They want you to sign up because you will end up indebted to them for life.  Resist the urge to splurge.  Shop your credit for low interest rates and fees.  Now is not the time to play now, and pay later, because you have a lot of later left, and interest fees will continue to grow.

Debt Management and Spending through the generations - Part 1

As debt collection attorneys in Florida, its out job to make sure that when a business or individual owes our clients money, it gets paid.

We see many people in harsh financial circumstances that could have been avoided with some advanced planning.

We ran into a great article that discusses spending  and age and things to look out for at various times of our lives, and would like to share that with you.

http://gulfnews.com/gn-focus/personal-loans/spending-tracker-map-your-financial-footprint-1.1314952

The article suggest that first, we get control of what our financial house looks like.

Journal 2 months of spending - and break the spending into sections like food, entertainment, housing, etc.

• Create a list of fixed bills  - things like power, water, rent or mortgage
• Compare the two lists and determine if your spending habits, match your expense requirements.

• Create an emergency fund equal to 3 to 6 months of expenses to help you through unexpected events.  Most Americans can't survive a 2 week interruption in income, every step you take towards 3 to 6 months puts you ahead of the crowd.
• Your loans should be no more than a third of your income.
• If you are of child bearing years, make sure your insurance includes maternity.
• Don't be afraid of personal loans to help you buy assets the will increase in value, like a home.
• They suggest debt stacking, make bare minimum payments on all your credit cards, except one - the smallest one.   Pay the smallest one off with as large of payments as you can.  Then go down the stack with the money you saved by paying off the first, tackle the next.

Getting the most from Debt Collection Efforts

Given current legislative conditions, an anemic economy, coupled with debt collection becoming more critical to maintain cash flow for businesses, Debt Collection Attorneys, like Florida Debt Collectors Marcadis Singer, are faced with more work, and fewer qualified agents to collect them.

A recent study buy Ninzi-Connect software found that over 40% of all calls handled by agents are bad numbers, busy signal and unanswered calls.  When a collector actually connects with a debtor, the same study found that the call was productive approximately 50% of the time.   That means 30% of all collections calls are actually productive.

One approach is to hire and train as many agents as possible, in the fervent hope that the new hires will break even on their training expense as soon as they are put behind a phone.  If that happens, pray that the collector isn't snatched up by  a more aggressive agency.

Throwing bodies, especially bodies that might be transient, is just not the right answer.  This "old school" approach to debt collections is ineffective, and does not lead to high quality professionals collecting debt for the law firm.

Improved training and scripts, however, do add incremental value to the hiring and deployment of collection professionals in a law practice.  The ins and outs of todays litigious environment need to be taught, practiced, role played in order to be effective.  This leads to a slower start up, but a more productive and professional collection agent, however it is not a panacea.

Automation also leads to incremental gain.  The built in delays in call answering using automated systems however, greatly diminish the efficacy of tools like automated call systems.   We prefer to not use tools like autodialers.  While they do lead to more calls per hour per collector, debtors and collectors alike begin their conversation at a disadvantage.

More effective in improving the productivity of the collections process is intelligent scheduling, calling the right people at times that are statistically more productive through data-mining past results buried in the collections software database.

A blend of intelligent collections, calling the right people, at the right time, with well trained collectors, working from a flexible but well crafted script are the key to optimizing collections calls.

Simply blind calling at times when no one is home, in the hope of finding a debtor may have worked in the old days when throwing labor at a project produced a proportionate gain in collections, just no longer makes the grade.

Today's smart collections professionals working for debt collections attorneys rely on good training, flexible intelligent scripts, and optimized timing based on a thorough knowledge of the years of data history within the firm.

Our industry is changing, getting smarter, becoming more profesional, and squeezing the old heavy handed poorly trained guard out of existance.

We welcome  you to talk with Marcadis Singer PA, and experience the difference smart collections make in the ROI of your collections efforts.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Bankruptcy Delusions

We ran across an excellent article regarding the state of bankruptcy in today's political climate.http://www.mondaq.com/unitedstates/x/301900/Insolvency+Bankruptcy/Debtors+Delusions+of+Bankruptcy

The essence of the article is that unlike decades ago, when anyone that was upside down in their debt could easily file using a DIY kit and be relieved of their debts, today, bankruptcy is truly about relieving those that meet certain criteria.  Today, the courts are far more skewed towards "if you have the ability you have to make the effort".

The article goes on to point out that many bankruptcy filings have been so spurious that they "have simply been remarkable wastes of time for our judiciary and generated unnecessary legal fees that needed to be paid to creditors."  In a debtors rights based legal system, bankruptcy court actually gives creditors a legal forum to deal with recalcitrant debtors.  

This tends to cause a "backfire" for debtors attempting to abuse the bankruptcy court to get out of debts that they may be able to actually pay.There are several excellent case studies in the article that are long, and not appropriate for the blog forum here.  If you are considering bankruptcy as the "easy way out" and working with an attorney that is walking you down that path, the final words of advise are very clear, and should be heeded by the debtor.

"Finally, it should be noted that debtors cannot avoid the consequences of the bad advice of their lawyers. The Supreme Court has held that "each party is deemed bound by the acts of his lawyer-agent and is considered to have 'notice of all facts, notice of which can be charged upon the attorney."In other words, if a client gets bad advise from an attorney when seeking a bankruptcy that they really don't need, there is no telling the courts "but my attorney said..."  "The remedy for bad legal advice lies in malpractice litigation against the offending lawyer." Cannon-Stokes v. Potter, 453 F.3d 446, 449 (7th Cir. 2006); see also In re Gow Ming Chao, No. 11-38131, 2011 Bankr. LEXIS 4543, at *24-25 (Bankr. S.D.N.Y. Nov. 21, 2011)"

There is no question that bankruptcy has a noble place in every civilized legal system.  Gone forever are the days of debtors prison and indebted servitude.  However as the pendulum swings on what is acceptable and not acceptable, bankruptcy now finds its place appropriately as a forum to ensure that if a creditor can be paid, they will be paid, and if a debtor truly is destitute and without means of saving themselves, they will get their due relief.

Damage Claims for BP Oil Spill filing deadline moves

Many of us along the Gulf Coast were impacted by the BP Deepwater Horizon Oil Spill, and have filed claims.

The deadline for claims under the court supervised settlement program has moved out, and is no longer April 22, 2014.

The details of the "deadline" are such that it is a moving target.   The Deadline is 6 months from the last possible legislative action, and once again, the action finds itself in Appeals Court, indefinitely extending deadlines.

This does not mean that you should sit on your hands, and enjoy the extension to file a claim.   There is a Settlement Agreement Provisions (Section 21.3) that states if the circuit or supreme court decertifies the case, anyone filed before that time, will be paid.

Procrastinators beware, there is an "en banc" petition pending with the 5th Circuit Court for just that.  Is it likely?   That's not relevant, if it happens, any claim filed after that date would not be paid, any claim filed before that date is secured.

Best to get your claims in, and not look for a reprieve.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

New Location for Pea Ridge County Courthouse

Life in Florida is certainly not all about the big cities.  Some have "Florida Myopia" thinking the state is Miami, Orlando,Tampa.. and maybe some of the cities up north.  We are please to report that Santa Rosa is the second to last of the counties as you travel North West in Florida about to leave the state.  It is beautiful, and relatively unspoiled Florida at its finest.

When you are a debt collection attorney in Florida, you get to experience all the areas that the state has to offer, especially one of the more beautiful counties, Santa Rosa County, with County Seat in Milton.

The Santa Rosa County Commissioners have moved ahead in the process of locating a new county courthouse,, and it appears a 22 acre site on US 90 in Pea Ridge will be the site.

The site is officially off the market waiting on final decision from the County commissioners.

Good Luck to our friends in Milton, congratulations on moving ahead on the long overdue new courthouse.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

St. Petersburg Debt Collection Attorneys present, the 5 ways to destroy your credit.  Take care of your credit, and hopefully you will never have to hear from us.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Economic Confidence

Read all about it... Step Right up.... Read All About it...

Yes the gallup poll is in, measuring confidence in the largest cities in America.

http://www.gallup.com/poll/168053/san-jose-tie-highest-economic-confidence.aspx#2

Florida made that list several times.

http://www.gallup.com/poll/168053/san-jose-tie-highest-economic-confidence.aspx#2

Miami - Ft. Lauderdale - Pompano Beach is the 6th most confident major Metropolitan area in their confidence in the future of their economy.

The greater Orlando Area scored 12th.

Tampa, St. Petersburg, Clearwater were down low at 45, 

Jacksonville Florida showed the least confidence in their economy at dead last, 50, for the second year in a row.

South Florida is bursting  at the seams in the Florida Economy, and it is quite a normal pattern for South Florida to start, and the rest of the state follow.  

It' great to see Ft. Lauderdale, Miami so confident.  Being a Tampa Based Debt Collection Attorney, we hate to see our home town near the bottom of any list.

For those of us in the doldrums, this is a study about confidence, about people's opinion, it is not about economic indicators, and actual economic situations.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

Handling Late Payments

Q: My business cash flow is being affected by customers failing to pay on time or making partial payments. What can I do to collect on the money that is still owed to me?

A: This is an issue that is becoming more and more prevalent in these tough economic times. Sales are the life blood of every business, and that often means extending credit to make those crucial sales. If the money is not paid back in a timely fashion, cash flow problems can arise. If you find that your business is having these types of issues, you need to take a serious look at your existing credit policies. That may mean implementing a collection procedure designed to collect monies that are owed.

Before implementing any kind of plan, you need to take a close look at your accounts receivable. It is time to see which accounts are current, which might be paid with a little bit of poking and prodding, and which are ready to go into the written off pile. The account due that fall into the latter category can be put in the hands of a collection agency in an effort to recoup what you are owed, leaving you free to pursue those that can be handled in-house. You need to start working on those potentially collectible accounts as soon as possible, but also need to ensure that any action you take is done in compliance with the Fair Debt Collection Practices Act. Full information on said act can be found at the Federal Trade Commission website at http://business.ftc.gov/credit-and-finance/debt-collection

While it may be difficult to contact customers regarding unpaid debts, it is a necessary evil. It does not matter how good a customer they have been in the past or how you think it will affect future business, the reality is that you have a right to be paid what is owed. A personal phone call is often the best way to resolve such issues. It may well turn out that circumstances other than negligence are to blame for the arrears. Some may be experiencing a temporary cash flow problem, while technical issues could be to blame for others. Once the situation has been explained, you can then create a payment plan that is equitable to you both, making it clear to the client that they will only be able to order on a COD basis until the past due amount is paid in full. Should the terms of that agreement not be met, you will then need to call in a collection agency.

Many of your potential issues can avoided if you put a clear credit sales policy in place. That means having a definite idea of which customers are in fact eligible for credit and how long they have to repay it. You may also consider offering discounts to those customers who pay early. If choosing that option, you should also put in place late charges for those who do not pay on time, although you will have to have a clear knowledge of the laws that dictate how much can reasonably be charged. For more information on charges such as that, take a moment to speak to Marcadis, Singer, PA.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245