Considering the options with an elusive debtor
Jan 27, 2012 Mike Garretson
As a financial institution or business struggling to obtain debts from clients, frustration builds and hope may seem lost. However, there are alternatives to simply giving up and you should understand your legal rights and options when dealing with an elusive debtor. Patience
Obtain the credit reports of your debtor and find out what type of expenditures they've made in recent weeks and months. Following the consumer spending boom of this past holiday season, Bank of America reported that credit card accounts during the fourth quarter of 2011 were opened at a 53-percent higher rate than the same period the year prior.
If your client has made luxurious purchases recently while refusing to pay debts to you on time, then you have the right to place a bad credit report to their credit agency. This process may take time to resolve, so have patience and understand that eventually you will get your payments. Debt collection agency
If you've come to the end of your wits and have expended all your energy in trying to obtain debts from a particular client or business, then you should consider acquiring the services of a debt collection agency. A debt collection agency can be sought for debts of any sum – whether you have one debtor who owes you $25,000 or 25,000 debtors who owe you $1, a collection agency will do all it can to legally obtain those debts. With experience and professionalism, a debt collection agency will be able to better handle the frustrating process of receiving payments from uncooperative debtors. Be careful with your inexperience
While you may be an aggressive and persuasive individual, you should be careful when you try to obtain debts without a detailed understanding of the Fair Debt Collection Practices Act. Any behavior that a consumer views as abusive can result in steep fines from the Federal government and even if you eventually obtain their debt, you will do incalculable harm to your company's reputability. If your patience doesn't last and your tempered state starts to fizzle, seek a debt collection agency and let the professionals deal with a practice that comes naturally to them. At all costs, avoid any behavior that may get you and your company into trouble with the law - you may up end up owing the authorities more money than you receive from your debtor.
Obtain the credit reports of your debtor and find out what type of expenditures they've made in recent weeks and months. Following the consumer spending boom of this past holiday season, Bank of America reported that credit card accounts during the fourth quarter of 2011 were opened at a 53-percent higher rate than the same period the year prior.
If your client has made luxurious purchases recently while refusing to pay debts to you on time, then you have the right to place a bad credit report to their credit agency. This process may take time to resolve, so have patience and understand that eventually you will get your payments. Debt collection agency
If you've come to the end of your wits and have expended all your energy in trying to obtain debts from a particular client or business, then you should consider acquiring the services of a debt collection agency. A debt collection agency can be sought for debts of any sum – whether you have one debtor who owes you $25,000 or 25,000 debtors who owe you $1, a collection agency will do all it can to legally obtain those debts. With experience and professionalism, a debt collection agency will be able to better handle the frustrating process of receiving payments from uncooperative debtors. Be careful with your inexperience
While you may be an aggressive and persuasive individual, you should be careful when you try to obtain debts without a detailed understanding of the Fair Debt Collection Practices Act. Any behavior that a consumer views as abusive can result in steep fines from the Federal government and even if you eventually obtain their debt, you will do incalculable harm to your company's reputability. If your patience doesn't last and your tempered state starts to fizzle, seek a debt collection agency and let the professionals deal with a practice that comes naturally to them. At all costs, avoid any behavior that may get you and your company into trouble with the law - you may up end up owing the authorities more money than you receive from your debtor.
