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.
Contacting Your Customers - Do you know what measures youre allowed to take when it comes to trying to contact your customers? The Fair Debt Collection Practices Act protects debtors from certain methods of collecting debt.
For example, there are limitations placed on the times during the day, as well as weekend, when you can contact debtors. There are also limits governing where you can and cannot contact delinquent customers about their past due accounts. Make sure you understand and operate within these legal prescriptions.
Should you reach a third party in your attempts to reach the original debtor, there are also restrictions on what you share with that third party. You're only allowed to ask the best way to reach the actual debtor.
Ownership Of Debt Disputes - There may be instances when a debtor will deny owning the debt, or that they owe your business any money. When this occurs, you are required to send written proof of this outstanding debt
Accurate and Truthful Information - It is imperative that you provide your debtor with accurate information. For instance, it is against the law for you to threaten or insinuate that you'll have debtors arrested. You also can't falsely represent that you have legal representation, when in fact, you do not. Nor can you imply that you have some governmental entity chasing after them.
Youre only able to give real information about the debt and your collection methods must abide by the debt collection agency laws at all times. Did you know that for violating the debt collection laws, your debtors could sue you for violation and potentially collect as much as 1 percent of the collectors 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 can be a difficult process, but if you understand and stay on top of the debt collection laws and collection agency laws, and how these govern the choices you can take legally to recover the monies owed to you, then you may discover it not so difficult at all.
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.
Contacting Your Customers - Do you know what measures youre allowed to take when it comes to trying to contact your customers? The Fair Debt Collection Practices Act protects debtors from certain methods of collecting debt.
For example, there are limitations placed on the times during the day, as well as weekend, when you can contact debtors. There are also limits governing where you can and cannot contact delinquent customers about their past due accounts. Make sure you understand and operate within these legal prescriptions.
Should you reach a third party in your attempts to reach the original debtor, there are also restrictions on what you share with that third party. You're only allowed to ask the best way to reach the actual debtor.
Ownership Of Debt Disputes - There may be instances when a debtor will deny owning the debt, or that they owe your business any money. When this occurs, you are required to send written proof of this outstanding debt
Accurate and Truthful Information - It is imperative that you provide your debtor with accurate information. For instance, it is against the law for you to threaten or insinuate that you'll have debtors arrested. You also can't falsely represent that you have legal representation, when in fact, you do not. Nor can you imply that you have some governmental entity chasing after them.
Youre only able to give real information about the debt and your collection methods must abide by the debt collection agency laws at all times. Did you know that for violating the debt collection laws, your debtors could sue you for violation and potentially collect as much as 1 percent of the collectors 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 can be a difficult process, but if you understand and stay on top of the debt collection laws and collection agency laws, and how these govern the choices you can take legally to recover the monies owed to you, then you may discover it not so difficult at all.
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 noted industry expert, business advisor and writer for over three decades on the subject of collection agencies. He offers more useful tools and resources on debt collection laws.
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