When you have a business to run, it is common to have a little bit of outstanding debt from clients. However, what do you do when the debt is excessive and is having an adverse effect on your business? This is where your business needs to have an experienced debt collection attorney in Springfield, who will be able to collect all of the debt that is owed to you. However, prior to speaking to the debt collection attorney, there are a few things that you need to understand about debt collection and the way a business and debtor are affected by it.
Because of the pandemic, your debt collection efforts may need to be adjusted in order to accommodate those who became infected by the virus. Your debt collection efforts may also be affected if a debtor had died from the virus. When you get a hold of a debt collection attorney, they will be able to advise you on what course of action is best to take.
What Debt Collection Is
Once your business has sorted out the debt that it needs to collect, you need to know how to go about collecting it. There are many ways you can accomplish this. You can make the effort to collect yourself by sending collection notices, hiring a debt collection agency, or hiring a debt collection attorney.
You need to keep in mind that if you hire a debt collection attorney, they will be able to go after the debtor and collect the debt a lot faster than if you did it yourself or had a debt collection agency do it.
The Debt Collection Process
The debt collection process may differ between companies that are making the effort to collect. The type of debt also matters in how the collection will proceed, such as a student loan or medical bills. You will need to make phone calls or send letters through the mail to make contact with the debtor. You also need to be aware of any statute of limitation that may affect the debt.
By having a debt collection attorney make attempts to contact the debtor, they will use the information that you have on file concerning the debtor, such as phone number, email, or home address. Depending on the circumstances, your debt collection lawyer may even obtain access to a debtor´s bank accounts to determine if payments can be made. If the debtor is currently employed, your attorney could make collection efforts through wage garnishment.
The Fair Debt Collection Practices Act
As a business, you need to understand that a consumer has certain rights under the Fair Debt Collection Practices Act. This means you and your business can no longer threaten a consumer based on nonpayment.
This is why it is important to get a hold of an experienced lawyer in Boston or Springfield, Massachusetts.
Your lawyer will be able to assist you in filing a formal lawsuit in court after all collection efforts have been attempted. After you contact us, our experienced team of debt collection attornies will ensure that the collection process is adhered to so that no violations of the FDCPA are made.
Handling Your Debt Collection
Once you begin the debt collection process, there are a few steps that you need to take to ensure that debt gets paid.
By being compassionate and expressing compassion your business is able to understand a debtor. You will also know how to proceed with debt once you hear the circumstances that they are going through. Once you have an understanding, a debt repayment plan can be negotiated around it.
Attempt to make your collection efforts as unique as possible. That means you may need to show a bit of creativity. You should also provide several options so that a customer will remain satisfied. By negotiating a payment plan, you should be aware that a consumer may have become ill, have an injury, or may have lost their job.
Ensure Collection Attempts are Professional
Besides remaining compassionate, it is important to remain as professional as possible while making a debt collection attempt. While making your attempts, ensure that they know you are flexible with the debt but avoid the details for nonpayment. You want to remain as nonthreatening as possible.If you begin to sound threatening, then you may inadvertently make debt collection violations. This may ultimately end with your becoming the one that gets sued.
Make Clear Communications
By making clear communication, you are able to maintain openness with a debtor. By remaining open about the expectations, your debtor will feel more comfortable in paying the debt they owe you. Make sure they are kept in the loop and not left guessing about the debt repayment. You can also have a policy put in place regarding payments. The customer needs to clearly understand all terms and fees and agree to them all. No matter how you communicate, you need to understand that the message is going to be received. What matters is the manner in which your communication is presented as it will determine the speed at which payment is made.
Using collection tactics on a debt, such as the above are great ways that will get the debtor to pay. The methods can also even create a lasting working relationship that lasts well into the future.