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.
executive chauffeured services Bradford .. Madison to Airport car-- Beyond Cold Calling, "Warm" Calling and Sending E-mails --Many... Read More
I was floored! I couldn't believe what they were saying!... Read More
What are the best methods for keeping a good business... Read More
Most business owners know when they need an accountant, but... Read More
You know what makes me really happy? Drinking a Starbucks... Read More
Achieving real success should be the goal of any good... Read More
You're a small business owner with a hot new product... Read More
Aircraft Interiors of personal and corporate jets have hundreds of... Read More
We were more than excited. Our women's doubles tennis team... Read More
Just recently, I took a break and caught "The Return... Read More
What makes a business relationship?What really makes a business relationship?... Read More
A common hazard faced by new entrepreneurs is a lack... Read More
Q: Is the online world the best place to sell... Read More
Sometimes when you run a business you feel as lonely... Read More
It's obvious when a small business has accepted the fact... Read More
While driving through Pennsylvania farmland, you have probably noticed an... Read More
It is most fascinating to study how entrepreneurs spot opportunity... Read More
There is much competition in the mobile auto detailing business.... Read More
All cities have a purchasing office and/or a procurement officer.... Read More
Remember those drawings from science class of how a lever... Read More
I've got good news and bad news. The good news... Read More
When is the Chamber ideal for your business?Joining a Chamber... Read More
Do You Really Need a Toll-Free Number for Your Business?... Read More
Car wash businesses are unique to other businesses. In fact... Read More
Not sure how to start a small business? This guide... Read More
O'Hare Chicago prom limo ..If you're serious about wanting to start a business, the... Read More
A successful joint venture marketing effort is the goal of... Read More
If you intend to franchise your company you will need... Read More
There is much competition in the mobile auto detailing business.... Read More
Everyone loves a good story. Whether it's the story of... Read More
One thing I have noticed in my travels to different... Read More
Researching information for a recent business plan, I came across... Read More
Providing high quality customer service is a must for any... Read More
If you run a pressure washing company in a rural... Read More
Company mottos can easily be printed on a business card.Sometimes... Read More
As you may know, there are many ways to incorporate... Read More
Here are just a few ways to increase and diversify... Read More
Franchising is the fastest way to build small businesses, provide... Read More
To wash an airplane there are many items you will... Read More
So often small service businesses fail to exploit niches, which... Read More
Many new ventures are preoccupied with all the money they... Read More
Some of the very qualities that attract people to the... Read More
COLLABORATIVE NEGOTIATING:Collaborative negotiating is a win-win strategy that can focus... Read More
Starting your own e-commerce business can be quite the adventure.... Read More
It has been said that the only constant is change.... Read More
There are many potential niches for pressure washing companies that... Read More
During the 1980 presidential campaign, candidate Ronald Reagan vowed, if... Read More
Why does consistency in the message have an effect on... Read More
When is it a good thing to say no to... Read More
Am I the only one that does not have an... Read More
Small Business |