Getting a call from a debt collection agency can be a nerve-wracking experience. Debt collection agencies work with businesses with outstanding payments and invoices due, to help them collect what is owed to them.
It’s important for debtors to understand the position these businesses are in: In order to survive, let alone thrive, they need to be compensated for the products and services they offer to ensure they’re able to pay their own vendors and ensure their business’ financial security. Getting a call on their behalf from a third-party debt collection agency is just them trying to connect with you to settle your account so that all parties can move on.
Understanding how debt collectors operate, as well as your rights in the debt collection process, can help you prepare for interactions with them.
Here are 5 steps to deal with collection agencies, in a productive and pleasant manner.
Be Willing to Communicate
Communicating with debt collectors can make it considerably easier to resolve your debt. When you pick up the phone when they call, call first, and respond to letters and communications, you signal your willingness and desire to come to a positive resolution and will garner goodwill towards you.
Related: How To Work With A Debt Collection Agency
Organize Your Information
Before you decide on a course of action, you should organize every piece of information you have regarding the debt. Ask the debt recovery agency for all the information they have on your case, to ensure it really is your debt to settle and allows you to make an educated decision about how to handle it.
Know Your Rights
Collection activities are regulated by a number of federal and state laws. These laws outline the rights and responsibilities of both the creditor (the business trying to collect the debt) and the debtor (the party that owes the debt).
At the federal level, the Fair Debt Collection Practices Act (FDCPA) sets out rules for how consumer debt collectors can interact with debtors. While the FDCPA applies to personal, family, and household debts, and not to debts incurred by businesses, many states have their own debt collection laws that apply to commercial debts, and these laws may provide additional protections for debtors. In addition, many commercial debt collection agencies voluntarily act in accordance with the FDCPA regulations so that they can ensure their collection activities are as above board as possible.
In addition to these laws, there are also industry-specific regulations that may apply to commercial debt recovery and collection. For example, the healthcare industry is subject to the Health Insurance Portability and Accountability Act (HIPAA), which has provisions related to the collection of medical debts.
When looking at hiring a third-party collection agency, it is critical to ensure they are qualified and credentialed, including having the requisite collection licenses and bonds. Monetaria Group is led by a team of debt collection attorneys, which lets clients know all their debts and cases are being handled legally and competently, with no chance of trouble down the road.
Speak to your own network to ensure your rights are being respected.
Related: How To Hire A Debt Collection Agency
Proactively Work to Settle the Debt
If you wish to settle the debt and put this headache behind you, you can try offering the debt collector a sum that is lower than the original debt. Commercial debt collectors are often willing to negotiate if they feel you’re working and positively communicating with them. They also may be willing to set up a payment plan so you don’t have to pay the full amount right away.
Put the Debt Behind You
Once the debt is being handled and paid off, you can move on knowing that no one will bother you about it again. Working to handle debt doesn’t need to be an unpleasant experience, and shows you own your responsibilities as a respectable member of society.
We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on collections, to ensure your business gets paid.
If you have unpaid debts that need to be recovered, commercial debt collection may be a good option for your business. A commercial debt collection agency can help you with the process of recovering past-due accounts and provide guidance on best practices for managing accounts receivable.
Led by a team of experienced commercial debt collection attorneys, Monetaria Group has helped hundreds of businesses recover and collect their outstanding debts and payments. Schedule a FREE consultation with our expert team to see how we can help you recover your money today!