When you are dealing with business debt collection, it is obvious that you might find yourself out of depth. For businesses, even after maintaining pristine paperwork and ensuring proper financial steps, debts can become inevitable. And in such cases, you need to find out how you can manage the business debts and how you can handle the debt collectors.
Business Debt Collection FAQ
It is normal that you have not complete knowledge about business debt collection and how agencies like Nelson, Cooper and Ortiz LLC work. So, when you are getting the call or the email, you might feel nervous and at a loss about what your next step should be. But getting to know the answers to the frequently asked questions regarding business debt collection can help you out and clear your doubts. Take a look.
Can Debt Collectors Call Me at Any Time?
No. The debt collectors are only supposed to call on business days and around business hours. Also, when you are getting calls from debt collectors, you have the option to tell them to stop calling and ensure that they don’t disturb you every day. You can send an email or send a letter where you clearly state at what time you want them to call or if you don’t want them to call you. If you are sending a letter, make sure that you are paying for the return receipt. Also, keep a copy of the letter for yourself.
Are Debt Collectors Lawyers?
No, debt collectors are not involved with law enforcement. They are representatives of third party debt collection agencies that are operating as aid for the company that you owe money to. They are trusted with the account and they are trying to get the money from you for their clients. However, debt collectors, in situations when they don’t get the money, can contact the lawyers to file litigation to get the money back.
Can Debt Collectors Pressurize You?
No, they cannot. Fair Debt Collection Practice Act or FDCPA prevents the debt collectors from harassing you. They cannot pressurize you directly or indirectly. They cannot use abusive language or cannot repeatedly call you. They also cannot tell you that you will be arrested and any legal action will be taken against you. They also cannot reveal your debt information publicly. This includes not posting about the business debts on social media as well. Also, as during the pandemic the state and the federal government have offered many interim benefits, as a debtor you might be entitled to some new rights. And the debt collectors must not cross the line and threaten you.
What Information the Debt Collector is Supposed to Give You?
When a debt collector is calling you, you need to ask for a few details before you start panicking or thinking about the debt. The details will include:
- Which agency they are calling from
- Which company they are calling on behalf
- What is the amount of the debt
- When was the last date of paying the debt
Once you get the initial call and the debt collector states all of these facts, you need to ask for validation of the debt. This will prove that they are authentic. Also, you will get some more time in hand to make sure your end of the story is right.
Can the Debt Collector Contact My Other Business Associates?
No, they cannot. It is completely illegal to talk about the debt with someone other than the debtor. It also means that the debt collector is making the debt information public which is an offense. You can learn more about the debt collection policies by state in this detailed guide
Should I Go for Settlement?
In your case, maybe your situation is genuine and that is preventing you from paying off the debt. So, talk to the collector from the big or small business collection agencyand find out how you can arrive at a settlement where you can pay in installments.
How Can You Find the Debt Collection Agency?
Now, after knowing the FAQ, you are a business owner, who wants to hire a business debt collection agency, you need to read on about it. The sight of unpaid invoices on the table must be becoming too much for you and that is why you need to address this issue immediately. Now, hiring an agency is definitely more beneficial than getting new staff recruited at your company for handling the debts. The third party agencies are often more efficient to take care of this tasks than in-house team.
So, how can you find the best business debt collection agency for your business? For that, you need to look for the following points.
In your city, there must be hundreds of debt collection agencies that are offering the service. But which one will be best suited for you, only you will understand. Hence, you need to conduct your research properly. Make sure that you are getting information about the past cases handled, success rate and the operation system of the agency you are zeroing on.
Don’t Sell It Off
Your debts should be paid back. You don’t want to let go of the money clearly. But there can be agencies that might try to buy the debts from you and then pay you a minimum amount. If the agency is trying to do so, then it is more likely that you will be facing loss. The agency will recover the debt and then they will get the profit of the full payment while you already have received a minimum price for the debt.
Check What Technology They Use
Your debtor might skip town or completely cut ties off. In a situation like this, the collection agency should use their state-of-the-art technology and find out the debtor to collect the money. Hence, you need to make sure that you hire the agency that deploys the best technology for getting the job done.
So, now as you know about these FAQs of debt collection and how you can hire the best debt collection agency, don’t forget them. Also, make sure you are paying the debts on time to avoid all of these issues.