5 Common Myths about Debt Collection
Myth #1: As a small business owner there is no way I can afford to pay an agency to collect my debts.
Many debt collection law firms earn most of their revenue from commissions on what they collect for their clients. The client pays the agency to collect, but the client still ends up with the majority of the funds. Most of these are accounts that would have never been paid without the knowledge and skills of a licensed debt collection agency.
Myth #2: Using a collection agency attorney will drive customers away.
This is a common threat used by people that feel they should not be responsible for their debt. Using a professional agency should never cost you business. Most consumers know they are subject to collection efforts if they fail to pay their bills on time. It is important to make sure the collection agency attorney you choose conducts business in an ethical manner.
Myth #3: If a debtor makes a small payment they cannot be sent to collections.
Some people believe that a payment as small as $1.00 will keep their account out of collections. This is only true if there is a signed agreement between the creditor and their customer stating that a $1.00 monthly payment would prevent the account from going to collections, and the payment is received on time. Past due balances can be turned over for collections even if payments are being made, regardless of frequency or amount, if there is no written agreement in place.
Myth #4: My staff sends letters and makes calls on past due accounts just like an agency, so I don’t need to pay someone else to collect my debts.
Are there consequences to your customers if they don’t pay? Is your staff experienced and knowledgeable about the laws regarding debt collection? With a debt collection attorney, there are consequences to ignoring letters and phone calls. We have the ability to report your accounts to all three major credit reporting agencies. Our collection attorneys are educated specifically on how the law works. We have years of experience in effective negotiation and communication techniques that will maximize collections.
Myth 5: I can’t do anything because the debt is too old.
The statute of limitations only limits the time frame in which legal action by a court (such as judgments) can be taken. Collection practices (such as phone calls, collection letters and listing on credit files) do not have to go through the court, and are not subject to the statute of limitations.
If you are ready to get your money, click here for more information about our services and talk to an experienced collection agency attorney today.
We can answer any questions you may have, dispel any myths that may have been preventing you from pursuing a debt that you have every right to pursue, and help you collect money that you’re due.