More FAQs

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Q. HOW SOON CAN YOU COLLECT FOR ME? 

A. Some cases are collected within the first 30 days and others are never collected. In general, most successful collections become apparent soon after our collectors begin dunning the debtor. Other times, the debtor pays immediately after the lawsuit is served, and generally we know if the collection will be easy, even if contested, within the first 120 days. While sometimes it is possible to delay in court for months to years, most collection cases are easy to win and harder to collect than regular court cases. That means that, even in a contested case, we can have a good projection for you rapidly. 

Q. WILL YOU COMPROMISE MY CLAIM? 

A. Only you can approve a compromise! We will do our best to get all of your money and we won't compromise your claim without your consent. If we get any written offer, we will communicate it to you for your decision. If we get any legitimate oral offer, we will also communicate it to you for your decision. Ultimately any settlement or compromise will be your decision. 

Q. DO YOU TAKE PAYMENTS? 

A. We always demand full immediate payment. Very frequently the threat of litigation or the filing of proceedings with the court gets the debtor to pay all of the debt immediately. In some circumstances, payments may be the only way to collect all of your money. If it becomes apparent that a debtor must make payments, or that we can get your money faster with voluntary payments than by waiting to fight in court, we will recommend a structure for the recovery of your money in such a way that you get it or we have the immediate right to seize assets and interrupt income stream. Remember, it will be your decision to accept time payments.

Frequently Asked Collection Questions (Part 1)

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Q. IS YOUR LAW FIRM AND AGENCY BONDED, INSURED AND LICENSED?

A. The law firm is licensed to practice law in the state of GA and TN. We also have collection agency licenses in all states that require attorneys to be licensed as a collection agency. The Law Offices of Ross Gelfand, LLC has a $3,000,000 aggregate errors and omissions policy through Minnesota Lawyers Mutual -Policy #8199-03. We also have a $500,000 fidelity bond and a $1,000,000 business liability policy through Hartford Insurance --policy #20 SBA TQ2184.

Q. WHAT IS YOUR SUCCESS RATE?

A. Our most frequent question is "Will you be able to collect my money?" Everyone wants someone who can say "YES". We believe that if anyone can collect, we can. Because our business is debt collection and we are a national law firm, we collect more money, more often than most other third parties! Furthermore, our state of the art software as well as our highly trained collectors and paralegals make our success ratio higher. Our success rate depends on many things and even before we investigate and attempt your case, we can get a good idea of collection prospects. Certain cases, for example, are highly collectable while others have a low collection percentage.

High probability of collection success is often indicated by:

1. very recent debt; and/or 

2. lavish life style of an individual debtor; and/or 

3. operating businesses; and/or 

4. excellent credit history; and/or 

5. occupational or professional licenses of debtors; and 

6. generally stable history; and/or 

7. supportive family; and/or 8. strong financial statement or substantial asset ownership; and/or 

9. history of reliance on obtaining credit; and/or 

10. debts under $75,000.

A lower probability of collection occurs in cases that are:

1. very old; and/or 

2. against corporations that are out of business; and/or 

3. against outright thieves, like those in jail or who are being chased by law enforcement; and/or 

4. against those who have or will be filing for bankruptcy protection; and/or 

5. against those people whose lifestyle tends to indicate no assets now or in the future, such as alcoholics, drug abusers, chronic gamblers, those chronically on welfare, the terminally ill; and/or 

6. huge debts; and/or 

7. large IRS tax liens.

Debt Collection and Social Media

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No one can dispute that the economy is heavily reliant on the debt collection industry. The economy won’t be in the pink if many businesses won’t hinge on the repayment of credit to pay for facilities, salaries, taxes, and other expenses. That’s why when times get harder, debt collectors become more aggressive in pursuing debtors. These days, creditors and collectors turn to the new means of reaching debtors—through Social Media. 

What really is Social Media?

As Wikipedia puts it, “Social Media refers to the use of web-based and mobile technologies to turn communication into an interactive dialogue.” Social networking sites such as Facebook, Twitter and LinkedIn commonly identify Social Media. However, other forms such as blogs, podcasts, pictures, videos, and social bookmarking also fall under the broad umbrella of Social Media.  

According to a report by Pew Internet & American Life Project, 65% of adult users are into social networking sites. Because of the high penetration rate, the drive of falling back on social media is too intense to ignore. 

But what can debt collectors really do in social media?

There are actually three reasons you may consider before taking the plunge into social media: to locate, communicate, and even accept payments from consumers.  A simple search on these platforms could yield vital information such as the current location and employment details of the debtor. The use of the “Big Three” in social media such as Facebook, Twitter and LinkedIn depends on the type of debt. Facebook appeals more to the younger segment, while LinkedIn is the working class’ hangout.

Downbeat consumers

Not everyone agrees that consumers should be reached through social media. Consumers and consumer protection groups alike are wary about the increasing number of collectors who turn to social media. 

However, nothing can really stop you from using social media in your collection efforts, not even the Fair Debt Collection Practices Act which was passed in 1978. Making false statements and harassment are forbidden though. You cannot just claim to be someone else when connecting to consumers online. Just don’t cross the line.

In line with this, the Federal Trade Commission is soon to release guidelines that will tell you about the dos and don’ts when it comes to the use of social media. On the other hand, The Association of Credit and Collection Professionals has already outlined the blueprint for Modernizing Debt Collection that proposes the removal of barriers to effective communications between consumers and debt collectors. 

More than just collections

Using more tools is essential for the debt collection industry. But more than successfully collecting what businesses rightfully own, social media use can be your own way of making PR work. Quite a few times you would find a bunch of negative tweets on Twitter. Although you don’t really need to engage consumers, responding to one or two of their questions or bad comments can really make a difference. 

Reaching consumers through social media will also make communication more effective. It will allow consumers to know the accurate details about their debts and their options directly and fast. This could even help both parties reach agreements without having to go through tedious and more costly settlements.