Last updated 5 days ago
If you have a client or customer who is late on a payment but are wary of ruining professional relationships, you’re not alone. And yet it is critical, especially considering the current economic climate, that you set a precedent for fair and timely compensation.
Read through the following to learn when it is appropriate to hire a collections agency.
The 90-Day Rule
Generally speaking, if an account is ninety or more days delinquent, you should consider contacting a collection agency. By this time, you’ve likely sent out multiple statements and invoices with either no response or an inadequate response from the debtor. To avoid expending any more of your financial or billing department’s time and effort, place the account with a collections agency.
Signs of Debtor Delinquency
Businesses should beware of the following debtor behaviors, all of which indicate an unwillingness or incapacity to provide the compensation owed.
- Delay Tactics—These include requests for more copies of the invoices you’ve already supplied, promises to pay with no follow-up, and refusal to work out a realistic payment schedule.
- Relocation With No Notification—If a client or customer relocates without notifying you, or their telephone has been disconnected, it is unlikely that they intend to pay what they owe you.
- Complaints After Payment Date Has Passed—If a client or customer introduces new complaints regarding the product or service you have provided long after the payment due date, it is also unlikely that you will be collecting payment without the help of professionals.
If you have more questions about when to place an account in the hands of a collection agency, call Accounts Retrievable System at (516) 308-9273. We can discuss the particulars of your situation, and provide recommendations based on our knowledge of debtor behavior and standard business practices.
Last updated 6 days ago
There are several regulations that govern the practice of debt collection. The Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) are two of the federal acts that are used to regulate debt collection. In addition, states and cities often have additional laws for the governance of debt collection. Working with a debt collection company that is in compliance with all regulations is important for the success of your debt retrieval.
- Employ Ethical Debt Collection Methods
Many of the regulations that are in place to govern the collection of debt set standards for ethical debt collection methods. These regulations forbid the harassment and abuse of debtors. By choosing a compliant debt collection company, you can ensure that the individuals and groups that owe you money are treated fairly and ethically by debt collectors.
Public opinion is important, especially if you are a business owner. Working with a debt collection company which is not in compliance with local and federal regulations may cause friends, business partners, or customers to develop a negative opinion of you or your company. This can cause your company to lose business and negatively affect your profits. Make sure that your personal business standards are upheld by choosing a compliant debt collection agency.
- Successfully Collect Debts
If you work with a debt collection company who is not compliant with all regulations, then you may run into complaints from debtors or trouble regarding your debt collection. In addition, compliant debt collection companies are aware of the documentation and forms required when contacting debtors about the amounts that they owe. Placing your accounts with a compliant debt collector ensures that no complaints or misrepresentations will halt the collection of the money that you are owed.
Accounts Retrievable System is in compliance with all local, state, and federal debt collection regulations. To learn more about the services provided by Accounts Retrievable System, call us today at (516) 308-9273.
Last updated 13 days ago
If you are a business owner, then you may have encountered clients or customers who have failed to make payments. Unpaid debts deprive your company of funds that could be used to improve business and make it difficult to make your own payments to employees and creditors. A debt collection agency can help you claim your debt and seek repayment. Different financial records from your dealings with the accounts receivable are necessary for the successful collection of debt.
If the debtor that you would like to collect from signed a contract with your business, then make sure that you provide a copy of the contract to the debt collection agency. Generally, contracts should contain the terms of agreement regarding payments. If you made a verbal agreement with the debtor, then try to remember what was discussed and provide notes or a transcript for the collecting agency.
Balance statements show the amount of money that is still owed to your company. Statements also document the payments, if any, that have been made towards the debt. It is essential that your debt collection agency is provided with a balance statement, as this is proof of the amount of money that you are owed. Balance statements should also show any fees that have been added to the unpaid balance. Statements from your business and from your business’ bank can both be helpful.
Business invoices that show the services or products that were provided to the debtor by your company are also helpful for debt collection. These invoices document the amount that the account receivable was initially charged and prove that goods or services were provided that have yet to be paid for.
Claiming debts can be difficult without professional expertise. If you are interested in collecting unpaid debt, then the experts at Accounts Retrievable System can assist you. To learn more about our services or the business documents that you should provide for debt collection, call us today at (516) 308-9273.
Last updated 15 days ago
Unpaid debts can hinder the financial success of individuals and businesses. If you have employed a number of debt collection methods but have yet to receive payment, then wage garnishment may be the best solution for receiving the money that you are owed.
- How Wage Garnishment Works
When a person is in debt, a court can order that a certain amount of money be taken from each of that person’s paychecks. Wage garnishment is often used after other debt collection methods, such as phone calls and letters, fail to elicit a response or payments from the debtor. If the debtor fails to make payments, then a creditor, collection agency, or business may take the case to court and sue the individual for the amount owed. If the suing party wins but the payments are still not made, then the court may issue a Writ of Garnishment. This writ is sent to the debtor’s employer, who will then withhold the specified amount from each paycheck and send it to the creditor to whom it is owed.
- Why Garnish Wages for Unpaid Debts
While wage garnishment is often a last resort for collecting debt, it is an ideal method of obtaining the required payments. As long as the debtor is employed and makes more money than is required for the cost of living, then he or she cannot continue to avoid paying the debt. In addition, the company that the debtor works for is obligated to garnish the wages and cannot discharge the employee because of wage garnishment. If the person who owes money is not employed but does receive personal earnings, such as those provided by pensions and retirement programs, then funds may also be garnished from those earnings.
If you need to collect unpaid debt, then Accounts Retrievable System can employ the necessary measures to help you obtain the money that you are owed. To learn more about debt collection and wage garnishment, call us today at (516) 308-9273.
Last updated 19 days ago
If you or your business are owed money by someone who refuses to pay, then a debt collection agency can help you receive the money that you are owed. At Accounts Retrievable System, we charge no fees until your unpaid debts are collected. If we cannot successfully collect the money, then we do not charge any fees at all. Here is some information about the fees that are charged upon the successful collection of debts.
If your business needs to collect money from another business, then this would be handled by our commercial collection division. The charge for commercial collection is 29% of the collected amount before litigation or 39% of collections if a lawsuit is pursued.
- Consumer or Retail Collection
For debt that is owed by a consumer who has failed to pay his or her bills, 34% of the collected amount is charged if no litigation occurs. After litigation, 44% of the collections are charged.
If you have gone to court and received a debt collection judgment, then there may be costs associated with the execution of that judgment, such as sheriff’s fees. After these costs have been deducted from the collected amount, 33% of the collection is charged.
- Child Support or Spousal Maintenance Collection
Often, cases involving collections for child support or spousal maintenance after a divorce also require execution fees to move forward. For these cases, we charge 33% of the net collections after the deduction of execution fees.
Cases involving international claims involve costs that are unique to the country in which the debt is being collected. The rates for these claims are provided for authorization by the client before the collection process begins. After the debt is collected, 39% of the collected amount is charged.
At Accounts Retrievable System, we do not charge upfront fees and never begin litigation without a client’s approval. However, those clients who choose to pursue lawsuits are responsible for advanced court costs. To learn more about debt collection, call Accounts Retrievable System today at (516) 308-9273.
