If a customer owes your local business money, it's hard not to feel angry, like you want to do anything possible to get your money back. But the days of going all out to collect on a debt over. The Fair Debt Collection Practices Act, designed to protect consumers from harassment or intimidation, sets firm limits on what you can do to collect a debt from a consumer. The federal debt collections law even prohibits practices that were once standard, and that you might not consider harassment at all.
Besides, as a local business, you have an even more powerful reason to be especially careful about legal debt collection issues. You have something much more valuable at stake than a lawsuit: your business's reputation in the community.
Legal Debt Collection Best Practices
There are plenty of articles on the web that lay out in plain English what the Fair Debt Collections Practices Act says you can and cannot do. Just to give you some idea of the law's requirements, here are some of the biggest:
* No telling any third party about the debt (except collection bureaus, collection agencies, or the debtor's attorney).
* No calling on the telephone 9 pm - 8 am, or calling repeatedly in a way that is annoying.
* No postcards or envelopes that mention the debt.
* No threats to take actions you cannot or will not really take, such as seizing property, in the case of an unsecured debt.
* No misrepresenting yourself (e.g., "Hi! This is the Publisher's Clearinghouse Sweepstakes. May I speak to John?").
* No paying down the debt with payments the customer has directed be applied to other debts
Tips and Tricks for Legal Debt Collections
With all these limits on what you can do to collect a debt, what can you do legally?
* Speak with the debtor personally on the telephone; most likely he or she wants to pay but is in over his or her head. Begin by asking what circumstance has kept him or her from paying. Offer to set up a repayment plan.
* You should both send letters and make telephone calls. Many people will only respond to one or the other.
Document every part of the collections process. Take notes for each call and keep a copy of each letter. If the debt does ever go to court, you will have proof you acted legally.
* Look into reporting the debt to credit bureaus. If you can, and are willing to do it, you can tell the debtor that not paying will impact his credit rating.
* Best tip of all: hand over the job to a dedicated collection agency. Small business debt collection services start at as little as $20 per debt. The fight to get paid is a fight no business should have to involve itself in.
Unfortunately, debt collections are a part of business. Just make sure that for your local business debt collection law is followed to the letter, or legal proceedings may become part of your business, too.
If you want to learn collection laws, then visit collection laws for the latest information on debt collection laws and collection agency regulation.
disinfecting cleaning services Winnetka ..Most businesses accept checks as form of payment for goods... Read More
How do we keep track of our business deals?If you... Read More
As a practitioner and student of Small Business Marketing, I... Read More
There is a rather famous true story called "Acres of... Read More
Auto detailers are often asked to clean boats and detail... Read More
Why do you need an account plan?When you first decide... Read More
It is not surprising that some people may perceive Six... Read More
In these days of insecurity and uncertain futures, the tendency... Read More
I love lists. I make them for everything. And I'm... Read More
In general, all of us know how to accomplish the... Read More
Q: I have outgrown my home office and need to... Read More
Let me get right to the point. The single most... Read More
A solopreneur I know disappears from my radar screen for... Read More
Many businesses offer small business franchise opportunities. There are many... Read More
Recently one of my customers told me the chaos swirling... Read More
What's your job profitability? I meet with business owners every... Read More
1. TargetYou are not all things to all people. Decide... Read More
Does your small business have a banking and credit card... Read More
Whether you are an Entrepreneur or Business Professional there are... Read More
Whether it has been thrust upon you by external market... Read More
Here are some useful tips on what to consider before... Read More
This morning, I went to take a short walk outside.... Read More
First, we need to define the different kinds of skip... Read More
Sexual Harassment is a disturbing part of employment life in... Read More
Everyday, customers and business owners are bombarded with billboards, logos,... Read More
last minute cleaning help Highland Park ..Pressure washing companies must look for customers in the retail... Read More
A career coach could be simply defined your job seeking... Read More
Never underestimate the power of perception! Perception plays a major... Read More
Introduction: This article is written as a general discussion on... Read More
If you're anything like me then you dislike with a... Read More
Starting the blind cleaning business is one of the best... Read More
If you are the boss and you think your job... Read More
Where do you find the right people for a business... Read More
No matter how small your small business is, it is... Read More
There is a continual trend we are seeing which I... Read More
-- The One Pager Shortcut Series --An effective and compelling... Read More
If you run a pressure washer business you need complete... Read More
Should you buy a business opportunity or Franchise if you... Read More
Top 3 Ways to Maximize Your Small Business Server Consulting... Read More
What would happen if you decided to take an extended... Read More
If you've been considering incorporating your small business, you've probably... Read More
Passion. Passion alone can make your business successful. As an... Read More
You make the decision to go into business and for... Read More
The difference between rates and wages is not always clear... Read More
It is not surprising that some people may perceive Six... Read More
Your business is only as good as the number of... Read More
Franchising Corporations need to maintain an iron fist when it... Read More
You've heard it before; we're living in an information age.... Read More
1. TargetYou are not all things to all people. Decide... Read More
There is much competition in the mobile auto detailing business.... Read More
Small Business |