If you ask 10 Californian business people if they have the right to cancel a contract within 3 days of signing a contract with another businessman, I am willing to bet you 9 out of 10 will say “OF COURSE YOU CAN – DEFINITELY!” That is perhaps one of the most widely believed pieces of […]
What is a Foti Message Within FDCPA Compliance
The Fair Debt Collection Practices Act (“FDCPA”) is a federal law intended to protect consumers from unscrupulous or harassing debt collection practices. The FDCPA was enacted in 1978, before the Internet, or even cell phones. Therefore, especially with regards to technology, the FDCPA can be less than clear. This article will discuss the rather surprising […]
Contract Damages in Collection Lawsuits
A delinquent account forces a number of costs onto the creditor. Employees spend time calling and writing the debtor attempting to collect. The creditor may be forced into delinquency on some of its bills, or fail to meet client demands. Then the creditor places the delinquent account with a debt collection law firm and may […]
Why Use a Credit Application
1) Protection From Bad Debt At the inception of a new business relationship, it may be difficult to imagine that this exciting new client will one day become a frustrating debtor. However, all debtors start out as customers. It is crucial to protect yourself from the beginning, and it is easy to do so with […]
Certificate of Insurance – Do You Ask for This?
This article is reprinted with permission from CreditBytes. The scenario: Your company has a customer that has consistently ranked in your top 20 for the past 5+years, which accounts for a significant portion of your company’s annual sales. Recently, the customer has placed another significant order along the lines of what they’ve been submitting regularly […]
When a Client Becomes a Debtor
Tools and Pitfalls When Collecting Delinquent Bills When a client becomes delinquent on its bill, but there’s still some hope the situation will be rectified short of writing off the account and placing it for collection, there are several tools available to a creditor to pressure the client to pay. Attaching Interest on a Debt […]
Should Salespeople be Involved in Collections?
This was posed to me as a topic recently and it raised my eyebrows after I had my initial knee-jerk reaction of wondering why anyone would want a non-professional involved in the collection process. However, deeper thought about it made me realize the sales force indeed has a role in ensuring delinquent accounts are paid […]
How to Choose a Debt Collection Law Firm
This is a very relevant question, which prompts a good bullet list of ideas and questions for you to use in the selection process of a debt collection law firm. Is Your Lawyer Qualified? Check your state’s Bar Association to ensure the lawyer is properly admitted to practice law in your state and to verify […]
The Best Debt Collectors Don’t Harass the Debtor
There I am at a party or in some other social setting and inevitably we get to the question, “Dave, what do you do for a living.” When I reveal I’ve spent a lifetime collecting debts – even on an international level, on come the snickers, raised eyebrows (like they just got confronted with the […]
Days Sales Outstanding
I recently mentioned the “DSO” statistic at a meeting of sales managers and was not surprised to see many blank faces staring at me in return – they had no clue what the statistic is or what impact it has on their business, even though most of them were also owners of their businesses. Most […]