The Massachusetts Division of Banks’ regulations forbids collection law firms from using unfair debt collection methods. The rules apply to buyers of outstanding debt who use service providers, including lawyers, to collect debt on their behalf and original lenders, including their attorneys. G.L. c. 93A, the Massachusetts Consumer Protection Act, is violated when the rules are broken.
Types of Debt Collection Services Offered
Commercial Debt Collection
Debts owed from one business to another are called commercial debts and collected. This is frequently a debt owed to the supplier by the buyer for goods or services never paid for. Failure to pay commercial invoices can severely harm a company’s cash flow, prohibit them from paying their vendors, and even force them to suspend production due to the much higher amounts at stake. Additionally, the process of recovering commercial debt frequently involves multiple businesses. Business owners frequently concentrate on being paid quickly to avoid pursuing a debtor.
Many companies give customers a predetermined time window to pay for their goods or services. This may range from 30 to 120 days. However, it occasionally may be shorter. After that period has passed, the creditor has a few choices:
- Transfer the obligation to a third party for collection.
- To a commercial debt collector, sell the debt.
- Sue, the company to collect overdue debts.
A Boston lawyer who accepts a case for collections works on a fixed fee basis and aims to get paid as soon as possible. Suppose your client files for bankruptcy, and the lawyer registers a lien against the client’s assets in the county courts where the client resides to protect your debt. We gather financial data about your client. If they have been unemployed, we might opt to hold off on trying to collect the loan until their financial condition improves. Our attorneys may be able to get a judgment against your client.
A commercial debt collection attorney pursues your uncooperative customer to recover the money you are owed, plus interest and legal costs. By outsourcing debt collection, you can enhance your cash flow and focus on other business ventures.
Personal Debt Collection
Debt collection can be a laborious procedure in Quincy. No matter how much money is involved. Not receiving payment from someone who owes you money on time can be rather inconvenient. The pursuit of those who owe you money might be fruitless and time-consuming. Beyond that, things might become ugly, and tempers could flare. Additionally, you could break the law when emotions are involved. Personal debt recovery services make it easy to get your money back.
The benefits of working with a law firm over an agency are numerous.
You should first anticipate receiving sound legal counsel from lawyers. Remember that a collection agent cannot counsel you on legal issues. You need to know much more than your available options before deciding. It is essential to have a professional explain to you the advantages and disadvantages of each option.
Business Debt Collection
Perhaps the most crucial requirement for every organization is cash flow. It sustains your life. You can no longer fulfill your obligations when the money stops pouring in. It’s likely that if you own a business in Boston, you have dealt with the very real problem of past-due accounts. Bill collection is not one of the things you perform extraordinarily well when running a business or making money. No collection firm puts forth more effort to get your money quickly. Our job is to get your past-due accounts paid.
What we do and how we do it distinguishes our legal debt collection method from that of debt collections law firms in Quincy. Our collection lawyers in the Boston area, throughout Quincy, Massachusetts, and beyond nearly solely concentrate on recovering commercial debt and collecting company debt. When you have outstanding accounts, our aggressive, persistent, efficient, and ethical B2B collections attorneys can assist small, medium, and large businesses like yours with debt collection.
A law firm typically handles the collection of commercial debt. A law firm is much better than a collecting agency in many ways. They are experts in the law field and know how to get things done by utilizing the legal system. Collection agencies do not handle court cases and have a predetermined negotiation strategy.
Additionally, they lack any legal background. A law firm knows necessary to file a lawsuit on your behalf or represent you in court. You cannot do this on your own without risking being sued by the individuals you are suing. An attorney for debt collection may file a lawsuit on your behalf, but only if you are unable to. Additionally, most of the work must be done by attorneys because they only understand what is required for a case to proceed in court.