Friday, October 16, 2015

What You Need to Know About Commercial Debt Collection

If you are new to the world of debt collection, you probably have quite a few questions and quite a few things you don’t understand. First things first, you should know that when you hear the term
“debt collection,” that simply means the methods a company uses to recover debts from its clients after their accounts become delinquent.

Commercial debt collection, then, is the methods used to collect money that is owed by other businesses. You can pursue commercial debt collections on your own, or, as most businesses do, you can hire a debt collecting agency to do the job for you. You also have the option of hiring an in-office debt collection team.

The first step in the commercial debt collection process is typically to issue a notice of delinquency to the debtor. If that doesn’t work for getting an account paid up, the requests and demands for the money owed get more and more aggressive and strongly worded. If all else fails, debt collectors can even bring cases to court in order to collect on the money owed.

Debt collectors generally do not want to have to settle a debt through litigation, which is costly and time-consuming. It’s much better for everyone involved if the debt is recovered before things get to that point. As such, most debt collectors use a variety of methods to try and get the money they are owed, such as phone calls, in-person visits, and warning letters.

It is important, however, for all debt collectors to operate within the bounds of the law. Debt collectors are not allowed to harass debtors, nor are they allowed to make any kinds of threats or intimidate debtors. There are also certain times when they cannot call debtors, such as very late at night. If they do, they can face litigation themselves and give the business they are representing a bad name.

If you are going to handle your debt collections yourself, it is imperative that you do so within the bounds of the law. And, even if you hire an outside agency to handle debt collection for you, you need to make sure they are scrupulous and abide by what the law says!   #CommercialDebtCollection

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