The Fair Debt Collection Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for credit cards and other charge accounts. - (see Fair Debt Collection Practices Act Consumer Facts)
Debt Collection Agencies are often used to collect past-due bills and outstanding debts. While this can sometimes yield positive results, it is relatively expensive (often 20%-30% or more of the monies collected!) and there are often quicker and more effective methods to making sure client bills are being paid within a reasonable time period.
First, communication is essential! When an invoice becomes only a couple of days old, it's wise to place a personal and friendly phone call to the customer simply stating that you noticed his bill just went past the due date and you were just wondering when you could expect payment.
It is important, throughout the debt collection process, to obtain some committment from the customer - no matter how small, and then try to hold him to his committments. So, if the customer, for any reason is unable to pay-off the entire debt at once, there are two things to do:
WHAT IF I STILL CAN'T COLLECT THE DEBT?
It's always a good idea to start by giving the customer the benefit of the doubt - after all, things sometimes do get delayed, or even lost in the mail. However, if the customer either refuses to make acceptable arrangements, or clearly is not living up to the committments he makes in terms of alternate payment arrangements, the best way to collect the debt is to get it out of your hands (so you can focus back on other, more valuable tasks), and into the hands of a Debt Collection Attorney that has the ability to take legal action on your behalf, such as filing a lawsuit, or even garnish wages, if necessary.
You can get quick and easy access to Top Debt Collection Lawyers in your area offering sound legal help and assistance for simply by completing the form at the top of this page.