Collection is sometimes a race: the priority of liens, or who reaches an account or tangible assets first, can make the difference between collecting a debt and being left out. Even when the debtor is solvent, placing pressure on the debtor is what it’s all about. Debtors stall, and litigation can take a year or […]
Is Your Debt Collector A Professional?
What makes a professional debt collector? From the timeliness and accuracy of reporting to collection strategy, there are many elements that determine the professionalism and success of your debt collector. Do you know who is collecting your bills? Elements of a Professional Debt Collector Reporting – Over the decades, I’ve had some clients tell me […]
What to Do When Your Debtor Goes Out of Business
When a company winds down and closes its doors, it can frequently leave creditors holding a bill. Your debtor goes out of business. Generally, California law grants wide deference to the protection provided by corporations to shareholders and directors, and grants similar immunity to new companies. It erects a wall against the former company’s creditors, […]
When Can a Contract Be Cancelled?
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 […]
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 […]
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 […]