Why Debt Collection Attorneys are More Successful Than Collection Agencies

Why Debt Collection Attorneys are More Successful Than Collection Agencies

If you work in a field where payments aren’t always received in full for the services you render, you’ve likely had to deal with clients who don’t follow through with paying their bills. But the revenue you receive is crucial to the success of your business and finding a way to make your clients pay is a necessity.

There are a few paths you can take to deal with these situations when they arise. You can try sending out a letter yourself requesting payment, you can hire a collection agency to take over the account, or you can hire a collection attorney to secure your payments. Many business owners choose not to take on the process of debt collection themselves because the process itself is a daunting undertaking and they simply don’t have the resources available to handle it in-house. Using a collection agency or attorney is not only a simpler process but letting an expert collect your debts can actually get you your money faster.

Most businesses turn to collection agencies when they need debts collected, but collection attornies can be even more effective at getting you your money.

Collection Agencies
A collection agency is what most people think of when considering their debt collection needs. These agencies use automated phone systems and computer programs to contact debtors and urge them to pay off their debts. As a third party, they’ll typically charge you when a debt is collected and will either charge a flat fee or a percentage of the debt owed.

Collection Attorneys
Collection attorneys specialize in debt collections. In addition to calling debtors and sending letters, attorneys have the power to take legal action against debtors and file a debt collection lawsuit. They have a dedicated team at their firm to handle your case who are experts in their field.

The Big Difference
A collection agency can’t sue a client. Collection agencies do have the power to file credit reports, make phone calls, and deliver written correspondence, but that’s often not enough to prompt people to pay their debts. These agencies also aren’t allowed to pretend they are attorneys or to pretend they have one on staff if they don’t. Because of this, people feel as though they can ignore these agencies and continue not to pay their bills.

So when a client continues not to pay their bill, there’s little a collection agency can actually do to escalate the situation and force the debtor into paying what they owe. A collection attorney can take more steps. Since they are an attorney, there are no laws barring them from telling debtors that legal action is imminent if they do not pay their debts.

In most cases, a collection agency is taking the same steps to get your money that you can take yourself. While it simplifies the process for you, it doesn’t mean that an agency is going to be able to succeed in the task any better than you would.

If the debt collection agency can’t recover your money and needs to turn the case over to an attorney, they’ll often charge an additional fee so that they are still making a profit off of your account. This means that in addition to the original expenses, you’ll be out even more money. There is no guarantee that a collection agency will be able to get you your money.

Many times, collection agencies utilize agents who only speak to people when an automated system calls them and will follow a pre-written script for the conversation that follows. Collection attorneys take a much more specialized and dedicated approach to debt collection. Attorneys will have an entire team dedicated to your case and pursuing your debt until it’s collected.

Attorneys may begin the process in a similar way that an agency would. But when phone calls and letters fail to make the debtor pay, attorneys are equipped to take the case to court. When debt collection cases reach court, there is often a default judgment against the debtor. Your attorney can take further legal action like garnishing the debtor’s wages or taking profits from business income.

Get Your Money Faster
When you’re attempting to collect a debt, you probably want your money as soon as possible. Debt collection agencies can often end up holding accounts for years without successfully collecting any payments. Agencies have to pay a significant fee to collection attorneys when they hand a case over, so they’re unlikely to do so until they have no other options.

A collection attorney can get your debtors to pay quicker because they can take legal action. Attorneys will never have to sell your account to a higher power because they can take the necessary action themselves.

The Bottom Line
People who owe significant amounts of money are often well aware of the fact that collection agencies have limited power over what they can do to collect a debt. They won’t feel compelled to pay no matter how many phone calls or letters are received. But a collection attorney can take legal action if a debtor continues not to pay – ensuring that you get your money as quickly as possible. If you have debtors who refuse to pay their bills, a Massachusetts debt collection attorney can build a case and represent you in court.