Debt collectors utilize a wide variety of debt recovery methods, from letters and telephone calls to garnishment and asset seizure. Debt collectors must follow federal and state laws that limit the actions they can take during the debt recovery process. While collection agents have the right to garnish your tax refund, they cannot intercept it directly from the Internal Revenue Service or your state government before you receives it.
This case study is a good example of how you can use the Late Payment legislation to claim interest, compensation and costs to cover your internal and external costs when pursuing unpaid invoices. It also highlights that the Late Payment legislation can be a strong negotiation tool to ensure full collection of all your unpaid invoices. In this particular case, an additional £2,000 in compensation was recovered on top of the debt of £27,000 for our client. This covered all their legal & internal costs of recovery.
If you are behind on your bills or have an error on your credit reports, you might have a debt in collections. Having debt in collections can cause major damage to your credit scores and even create costly legal issues. If you think you might have a debt in collections and aren't sure what to do, here's what you need to know.
As a creditor, there are always legal options available to collect on your debt. However, depending on the circumstances, these methods can be timely and costly. An alternative is to try and negotiate with the debtor to settle the matter.
Negotiation has many benefits. It saves on time and costs, it is a less aggressive approach and therefore can save on the emotional stress of a legal process, and negotiation typically encourages a quicker resolution.
This article will broadly explore some strategies for negotiating including:
Strategies for negotiating and successfully negotiating a payment plan.
Accounts receivable is the most important department in any business, as sales are not sales until payment is received. Late payments not only affect your cash flow, but can also prevent you from paying your own bills on time.
This article looks at ways you can encourage your customers to pay on time, how you can make it easier for them and when you should draw a line and call in the professionals..
10 tips on getting your customers to pay their bills
There will always be customers who do not pay on time, but there are things you can do to encourage the majority to pay you closer to the due date. The following are ten simple ways to reduce the time between issuing the invoice and receiving payment..
Knowing what debt collectors cannot do to collect a debt from you may help you deal with and protect you from their approaches to debt collection.
The Fair Debt Collection Practices Act (FDCPA) is the federal law that governs debt collection for personal, household, and family debts like your mortgage and car loan, other personal loans, your credit card debts, past-due utility bills, past-due student loans, medical and insurance debts, condo fees, unpaid legal judgments against you, and bounced checks. The FDCPA applies to outside debt collectors, but not to a creditor’s own in-house debt collectors (meaning debt collectors who are employees of a creditor).
Let's travel in time back to August of 338 B.C., when the fabled Athenian orator and statesman Demosthenes was a foot soldier at Chaeronea, the scene of one of the most famous battles in history between the Athenians and the Macedonians. The Macedonians carried the day, and 3,000 Athenians died. Demosthenes retreated early in the fight and was severely reprimanded for fleeing the battlefield. Defending himself against critics, Demosthenes retorted: "The man who runs away may fight again." Over the centuries this line has been translated to finally read "He who fights and runs away will live to fight another day."