DEBT COLLECTION TECHNIQUES PART TWO

DEBT COLLECTION TECHNIQUES PART TWO

It is proven that a collection notice from the collection attorney results in more effective collection than one that comes from the company itself.  It tells the customer you are serious about collecting on the debt and have solicited help to do so.  The “fear factor” associated with a ding on their credit report from a collection attorney might just do the trick to force them into paying.

Benefits in a collection attorney also are that they know the laws associated with debt collection and are less likely to falter in this aspect.  They have also learned over the years to handle debt collection calmly and do not have a personal involvement with the customer.  They also have the ability to track down clients in ways that are not available to the business who provided the product or service.  

Overall though companies would have less bad debt if they had a clear cut plan prior to accumulating bad debt thru a debt management policy.  Companies who clearly define credit policies and criteria have fewer bad debts.  This is tedious in the preparation stages but can pay off greatly in the end. For more debt collection techniques contact your Tampa/Saint Petersburg Debt Collection Attorney.

DEBT COLLECTION TECHNIQUES PART ONE

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

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

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.

TYPES OF COLLECTION ATTORNEYS PART ONE

TYPES OF COLLECTION ATTORNEYS PART ONE

Collection attorneys begin the process of negotiation with debtors to help collect on money that is owed to a creditor.  While they are not popular with the debtors, they provide an invaluable service to the company hiring them.  The fees charged for their services are much less than what a company would spend having an employee attempt to collect on bad debt.

For companies that wish to hire a collection attorney there are several types for them to select from.  Depending on the type of debt that is owed, and the type of collection that is needed will help solicit the type of collection attorney that is hired.  Collection is an art of negotiation, and creditors want to find the type that best fits their needs.

Debt Collection Attorney

Debt Collection Attorney

From time to time life throws us circumstances that may cause us to miss paying a bill on time, or even not paying it at all.  Once these bills have been with the owed party for an extended amount of time unpaid most companies will solicit the help of a collection attorney to collect the debt for them.  

The amount of time you have before an account is turned over to a collection attorney can vary from as little as 3 months to 24 months or more.  You will definitely know when it has been turned over as the collection attorneys will start calling you about the money owed to the creditor.  Collection attorneys can collect on all kinds of debt.  Money that you owe a bank, apartment complex, credit cards, medical bills.    

Collection attorneys have access to information that will help them in tracking down the debtor.  If they can’t find your address, or have had statements returned they can use reverse phone directories, or may even access city records or use a service such as Net Detective.  Once you have been contacted the collection attorney will want you to pay the debt in full.  If you can’t they will at minimum want you to setup a payment plan.  This can either be weekly, bi-weekly or monthly.  You will also then owe them a fee as well.  The collection attorneys will attempt in every means possible to collect on the debt for the creditor, or if they have sold them the debt collect on the debt they purchased.  

You do have the option to contact the original creditor which you owe and explain to them the situation and see if you can make arrangements with them to avoid further fees.  Many will agree especially if you can make a payment immediately.  

You should check your credit profile often to ensure that your credit record does not include duplicate reports.  It is your legal right to have duplicate reports of the same account removed should they occur.  You have the legal right to protect your credit report and make sure that any collection activities are reported correctly against you.

BAD DEBT RECOVERY

Debt Recovery

Contact Florida Debt Attorney Marcadis Singer  PA 

Bad debt actually has two steps to its collection.  First bad debt must be identified, and then recovered.  

While it sounds easy identifying bad debt is not always as simple as it may sound.  Although the earlier it is identified the easier in most cases it is to collect.  Bad debt can be identified earlier in the process but watching for the following signs.

The customer fails right off the bat to pay per the agreed terms.  A customer that makes unrealistic complaints about a service or a product normally will hold back, or never make the payment.  Some customers will ask for continuous extensions on the payment due dates.  Phone calls or letters are ignored by the debtor.  Also those customers that always pay late, will eventually in most cases turn to bad debt.  

Once the bad debt is identified, the recovery process can begin.  For some companies they may first attempt to collect the debt in house, to try to maintain a good relationship with the customer.  If you do this and have good documentation to prove the debt in many cases the customer may make good on the debt and make recovery easy.

For a constant or chronic defaulting customer the in house collection efforts don’t always work.  In this case debt collection attorneys have the ability to enforce efforts to collect and use the legal boundaries provided to collect for you.  These attorneys also will be more successful for your collections when you provide them all the necessary data to help in the collection process.  Marcadis Singer PA has the knowledge to utilize all techniques available to them for collection of the identified bad debt.