Collecting a debt can be extremely time consuming and frustrating. Allow L4SB to utilize their legal expertise to eliminate the headaches of debt collection.
In its simplest terms, debt collection is the process of pursuing payments of debts owed by individuals or businesses. When a customer doesn’t pay as promised, expected or contracted, it can represent a serious setback for the business. L4SB can help you in two important ways:
Spending working hours trying to collect debt can consume valuable resources, which can end up costing your business even more lost money.
The general process L4SB uses to collect a debt is as follows:
The second step oftentimes takes patience and compromise, but in the end, requires an agreement between the disputing parties on the resolution and often a “waiver and release” from future legal action. This second step is very important, because if you fail at reaching a compromise and negotiated settlement, your only other option may be a lawsuit (unless other forms of dispute resolution are available, such as mediation or arbitration).
Unfortunately for some businesses, if the debt is a “consumer debt,” your debt collection efforts are regulated and controlled by the Fair Debt Collection Practices Act (or FDCPA for short), or similar laws passed at the state-level. The FDCPA’s stated purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information’s accuracy. The FDCPA creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act. It is sometimes used in conjunction with the Fair Credit Reporting Act, and applies to third-party “debt collectors,” although many states have passed similar laws to regulate “original creditors.”
Businesses would be wise to abide by the requirements of the FDCPA, or the local state’s laws that mirror the FDCPA for “original creditors,” to avoid potential causes of action. Requirements include hours of contact, ceasing contact when requested, repeated contact, contact at place of employment, etc. L4SB can help you understand any legal requirements to debt collection, and can help you refine your processes as appropriate (to your particular business and your company’s particular type of customer).
An exception to this is “small claims court,” where amounts in controversy of less than $10,000 may be heard and it is easier to represent yourself because these courts have been specifically created for small claims and pro se representation (i.e. representing oneself).
Note, however, that seeking legal advice on the proper interpretation of a contract or otherwise discussing your legal options is a great option for the wise business owner.
Collecting a debt with L4SB puts experienced business lawyers on your side. We ensure your business is following the debt collecting laws in the state of your choosing, and we offer competent, sound legal advice to help you legally collect on a debt.
If you chose L4SB, it means you have licensed attorneys acting as your representation, unlike the other guys across the wire. This means your business benefits from attorney-client privilege, and you can rely on the advice and counsel of competent business lawyers to advise you in all phases and aspects of your business.