International Debt – A Growing Area of Collections

Today’s marketplace is becoming increasingly global.  With the rise of the Internet, it is possible for businesses to operate virtually everywhere.  This is a profitable turn of events, but it can also mean that a business is left with payments owed by consumers in other countries.  As each nation has its own laws, it can be tricky or time-consuming to collect on the debt of customers in other countries.

If a business has significant international debt, it may be a good idea to bring in a collection firm.  The attorneys in a collection firm may be better equipped to collect on international debt because they can easily access and better understand the law specific to each country in which the debtor resides.  An attorney may also have more time to work within the time zone differences inherent in dealing with debtors overseas – assuring that attempts to contact the debtor do not violate that country’s collection laws. 

A collection firm is also more likely to have the resources to deal with the foreign language issues that come up in dealing with international debt.  It is often the case that the business owner does not have the staff or resources to spend time reaching debtors in Asia or Europe or Africa.  Even once the debtor is reached, understanding must be achieved. 

It may be necessary to actually file suit against the debtor, as the customer is unlikely to take informal collection efforts as seriously as legal action.  In this case, it is essential to have an experienced lawyer, who is informed about diverse international collection laws, handle the case.  A collection firm that handles international debt is likely to be well versed and very busy, as it is not a huge area of practice in the US.  It would be wise for a business to utilize a proper collections attorney for collecting on international debt, creating the best possible settlement on the debt.

Is The Consumer Finance Bureau Becoming Draconian Like In Its Attempts To Audit And Control Collection Firms?

The Consumer Financial Protection Bureau is in charge of overseeing banking practices so that consumers are protected from abusive tactics.  It was created in 2010 as one of the parts of the 2010 Consumer Protection Act, and while most people will agree that the consumer must be protected against abuses it needs to be asked if the bureau is actually overreaching in an attempt to audit collection agencies.

Last January 2013, CFPB declared that any party with greater than $10 million in annual revenue from consumer debt collection activities will be subject to the Bureau's audit. The 3 major categories of debt collection included under the rule are:  (1) firms that buy defaulted debt and collect the proceeds for themselves; (2) firms that charge fees for collecting defaulted debt owned by another company; and (3) debt collection attorneys that collect through litigation.  This is the first time that the federal government will supervise collection attorneys.  Because of this, the CFPB will start overseeing about 175 debt collection agencies, representing more than half of the debt collection industry's annual receipts.

Why Collection Firms Are Targeted

Collection agencies and firms seem to be targeted a lot more because it is up to consumers to complain about practices.  Since no one likes to be called about a payment (even when they know they owe the money), it is more likely that they will complain to the Consumer Financial Protection Bureau.  That means that the more complaints, even when they are not justified, make it more likely that a firm will be paid closer attention to.

Is It Fair?

While there are some collection agencies which have made mistakes and in some cases even overstep the things they can and cannot do, most firms are responsible in their practices.  Collection firm owners and workers will be happy to see an abusive firm go off the market, but unfortunately a lot of the good players in the industry are also suffering the consequences.  Some will be happy to make the industry look bad which means the firms have to pay a fine plus legal fees even when the complaint seems to be a little unjustified.

What Firms Can Do

The one thing that the best firms have been doing is to ensure that their personnel have the latest in training so that they can stay updated with the latest changes in the industry.  The bureau can propose changes in the laws at any time and if adopted the firm must comply from day one.  

How to Use Automation and Virtual Collection Systems to Reduce Costs and be Profitable

The economic problems of the past 5 years have been significant, resulting in the double-edged sword of increased collections opportunities AND increased difficulty in collecting on those accounts.  In order to compensate for increased accounts and increased need to cut on expenses, collections firms are learning to make use of the benefits that automation and virtual collection systems can bring. 

The term ‘virtual collections’ generally refers to applications that include:

1. Electronic payment options
2. Automated negotiation features
3. Interactive collection communications (ICC), such as the Internet, e-mail, text messaging, and interactive voice response systems (IVRs)

Through the use of an automated collection system, it’s easy to offer delinquent customers the opportunity to agree to an individually tailored settlement any time of day or night, 7 days a week.  These automated systems allow collection firms and collection attorneys to collect on debts immediately online and use real-time credit scores to help determine the customer’s ability to pay on a debt.  Such information can be vital in providing a suitable automated negotiation that will be mutually beneficial to both the collector and the delinquent customer. 

You’ll find that the payment initiation procedures vary, depending on the virtual collections system used.  Some virtual collections systems will be limited to electronic bill pay, while other will add more extensive features allowing debt negotiations.  The types of payment channels will differ, as well, with some collecting mainly via credit or debit cards and ACH payment, and others offering additional features such as PayPal and other online payment portals.  These additional payment initiation features can help with your collection efforts, as many delinquent customers make money on the side through eBay or Craigslist and are often paid for these transactions through PayPal. 

The greatest benefit to virtual collections systems, however, lies in their ability to provide advance reporting and analytics regarding collection accounts.  This, combined with the feature of real-time credit report information, help collection agencies determine the extent to which their delinquent accounts should be pursued based on the customer’s most up-to-date credit information.  

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The Importance of Varied Collection Tactics

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It isn’t enough to simply hire a collection agency that doesn’t use underhanded tactics to attempt to pressure debtors into paying- you need to hire a firm that utilizes a variety of different tactics to increase the chances of acquiring the money owed to you. Tactical variety is important for a number of different reasons.

First, it can be more difficult for a debtor to lodge a legal complaint against a collection agency that uses a variety of low-pressure tactics than a collection agency that hammers them repeatedly with the same tactic. For example, a collection agency that calls their debtors multiple times a day is a much clearer candidate than a collection agency that occasionally calls, occasionally sends a letter, and occasionally makes a personal appearance.

If an agent repeatedly calls a debtor and that debtor never picks up the phone or calls the agent back, it’s clear the phone doesn’t offer a viable form of communication. As such, any agent who persists in calling proves they are simply attempting to pressure their debtors and isn’t attempting to discover a legitimate communication channel with them.

On the other hand, an agent who uses multiple communication channels is more clearly searching for a way to speak with their debtor about their outstanding account. As long as an agent uses a varied set of collection tactics within the bounds of the law, they inhabit a far more legally defensible position.

Varied collection tactics are also more effective than a single tactic, used repeatedly, because varied tactics are more difficult to defend against. A debtor who solely receives repeated phone calls from a collection agent needs to do nothing more than ignore those calls to wall themselves off from taking responsibility for their debts. An agent who uses multiple tactics has a considerably greater chance of getting through their debtor’s defenses and actually making contact. 

Even More Reasons to Work with a Responsible Collection Firm

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There are plenty of reasons why choosing to work with a responsible collection firm is a wise decision. Not only are responsible collection tactics less distasteful than the “thug tactics” employed by many collection agencies, but relatively respectful collection tactics are more likely to produce favorable outcomes with your debtors as well. There’s a third, even more important and even more practical reason to choose a collection agency that does NOT utilize inappropriate tactics- there are laws against the most common debt collection harassment tactics.

At a very base level a collection professional needs to be polite and respectful to the debtors they speak with. Collection agents aren’t allowed to bully or otherwise act in an excessively rude manner to the debtors on their lists. While a collection professional isn’t likely to be reported if they speak in a manner a debtor considers “rude” or “disrespectful,”such a manner will hurt your case if your debtor’s account goes to court.

One of the most common forms of harassing behavior utilized by debt collectors is a continuous string of phone calls at inappropriate times. Now, there’s nothing wrong, illegal or immoral about calling a debtor about the money they owe. But legally speaking a collection agent can only make these calls during a range of hours that have been clearly defined according to state and federal law. The laws dictating when a collection agency can call a debtor differ from state to state, and if an agent repeatedly makes calls during prohibited hours they can be sued for harassment.

Harassing behavior does more than simply lower the chances you will collect from your debtors- it gives your debtors legal ammunition to use against you. 

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.

The Ripe Time to Turn Over Collections

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As a creditor it can be difficult to know when it is the right time to turn an account over to collections. Even though your collections efforts may not be coming to fruition, you may have several reasons for not wanting to turn an account over to a collections agent right away. You may not want to spend the extra money on outside collections, or you may simply want to have faith that your clients will eventually pay the debt you are owed. However, at some point you have to face reality and know that a collections agent is required.

But how do you know when the time is ripe to turn over an account to a collections agent? There are several key factors that can help you determine this. First, consider the response you have had from your client. If your client has completely ignored all contact regarding the matter for several months, you need to enlist the aid of a collections agent.

Another thing to consider is how much time your company is spending trying to collect the debt. Time is money. It may be more cost effective in the long run to hire someone to collect the debt for you.

Finally, there are many times during the year that is the best time to turn an account over to collections, because there is a possibility of an influx of money. If your client is a student, there is a good chance that they receive loans and other funds around the end of December and the end of August. These are good times to try to collect on the debt.

Another great time for anyone to collect on a debt is during tax season. People often begin filing their taxes as early as February if they know they will be receiving a refund. Starting the collections process in February and going on strong through May or June will guarantee that you catch your client with their tax refund in hand. At this point, if they do not pay the debt, you know they have no intentions of doing so.

In the end, any time can be the ripe time to turn an account over to a collections agent. It all depends on your resources and your company’s policies on how long a debt can remain unpaid before you take action. Most certainly any debt more than six months old should be sent to a collections agent. These agents can often have the means to collect on a debt that you yourself cannot obtain. 

Small Business Collections - How Collection Efforts can Benefit Small Businesses

There are all types of debt collection claims that can be handled by the office of Ross Gelfand. If you have a small business, sometimes these are the most difficult types of collections to be reimbursed on. With today’s economy, it is harder to collect unpaid balances, but at the office of Ross Gelfand has found a way to make it easier by offering services for commercial, rental, medical, and skip tracing services. What the help of their office they can help small businesses collect the money that is owed to them. They have a team of experts waiting to answer any type of questions that you may have. 

Unfortunately, most small business will one day have a situation with collections. At first, you may not realize how much revenue you may be losing every day. The law office of Ross Gelfand has done a remarkable job recovering some of the lost currency. They offer many different types of services. They can help you handle a vast variety of small business situations and business collections services. They can handle everything from a commercial lease to a contract on the building. Sometimes the most difficult situations may be insurance subrogation but this office will always rise to the occasion, and succeed to help you get the benefits you have deserved. They provide telecommunications and high technology on your behalf to get you the best return possible within your legal rights. 

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By having the ability to collect some revenue on your behalf your small business can start to thrive. Your small business will be likely to succeed even more because you can reinvest your own hard earned money back into your business. There has never been a more dedicated law firm, then Ross Gelfand to help the small company. It may be just a few dollars here and there, but those few dollars add up. With today’s economy, every little bit helps, and before you realize the money that is owed to you the figure could be in the thousands. Ross Gelfand has the experience and the knowledge to help you collect everything that is owed to you. The law offices of Ross Gelfand work within the legal guidelines of several different states. They will do all the necessary paperwork, phone calls, and follow-up on your behalf so that you, as a small business owner, will have one less thing to worry about.

The Pre-Judgment Phase of Debt Collections – How Law Firm’s Efforts Obtain Better Results

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There are numerous steps a small-business owner can utilize in collecting money owed. A small company owner may start out with letters of notification, and follow up with phone calls to the person who owes the debt. A small business owner may get a response from the debtor and they may pay their debt. Unfortunately, sometimes a business owner may need to hire an outstanding law firm such as the Law Office of Ross Gelfand. Putting a law firm to work for you makes perfect sense. It will increase your leverage and show that you mean business in collecting the money owed to you. 

At the Law Office of Ross Gelfand, they understand today’s economy and that everyone is just trying to get by financially. When the small-business owner has no other alternative, they can hire Ross Gelfand to take pursue the uncollected balance. If they have tried everything possible to collect the debt from the individual and nothing has worked, they may seek a pre-judgment phase of the debt collection process. What that means is that a letter is sent out to the one who has not paid their balance on behalf of the business stating the fact that in a certain amount of days, if the balance is not paid, then the Law Office of Ross Gelfand has no other choice but to seek a pre-judgment in an attempt to get the individual which owes the money to pay the balance. If all else fails then there will be a set judgment against the debtor to recover the amount of money that is owed to the company. 

The Law office of Ross Gelfand is outstanding when it comes to the pre-judgment phase of the debt collection process. They understand with today’s financially trying times. At the law office of Ross Gelfand after everything has been tried: the statements, phone calls, and letters, they will move to the judgment phase of debt collection process on the behalf of the small business owner to start the process of garnishing wages. They understand the struggles of the small business owner, and have the unique ability to handle this type of situation in a professional manner. Any small business owner who has an outstanding amount of debt that needs to be collected should take a look at the law office of Ross Gelfand.

Collection Management and Debt Solution

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Many financial institutions seek the assistance of an experienced debt collection agent to enhance their debt portfolio. The debt collection agencies are specifically hired by lending institutions to acquire the money owed to them. Collection laws are executed by professional law firms that provide companies with the legal securities and protection needed to establish an effective collection campaign.

Any financial organization that endures debt or collection issues has the opportunity to utilize collection attorney affiliates to effectively recover large bills that have gone unpaid. A network of bonded and licensed collection attorneys offer a friendly service that not only recovers your debt, but also improves profitability. Your need to communicate with the debtors can be achieved through the involvement of highly skilled collection law offices within thirty days. Specifically, the debt collectors take pride in utilizing a unique approach that renders a debt solution in a timely and inexpensive manner.

The friendly collection law experts are always available to assist you with your commercial and retail debt collection needs. Licensed and professional debt collection attorneys provide services for well- established corporations to private individuals. The law firm patiently answers your questions, while simultaneously composing a powerful argument to manage your case. More so, the knowledgeable attorneys provide efficient services that accommodate each client’s needs. There is an array of services, which also includes medical and Skip Tracing.

The commercial account receivables include commercial lease accounts, binding contracts, telecommunications, open accounts, high technology, and insurance subrogation. The collection law offices also encompass a retail collectors department that specializes in consumer debt problems. Retail collections may include insurance subrogation, auto deficiency, credit card, and unsecured loans. A law collection management team will work on medical dilemmas, to include self- pay, contract compliance, PPO appeals, silent PPO’s, and HMO reimbursements. The Skip Tracing process is an aggressive and effective strategy used for tracking debtors. In order to successfully collect money owed to you, you must first locate the subject. Despite attempts to relocate or disconnect phones, the Skip Tracking debt solution tool is equipped to locate any debtors across the globe.

Utilizing the services of highly skilled collection attorneys has considerable advantages. A debt collecting law firm proves to be very effective in collecting aged receivables; delivering a high recovery rate. They have the resources necessary to successfully fulfill its client’s needs.

The Law Offices of Ross Gelfand, LLC provides quality services at reasonable prices. The attorneys and their affiliates are both friendly and knowledgeable. They have a unique approach to providing reliable and efficient services. Contact these highly qualified attorneys at www.collectionfirm.net to experience your ultimate debt solution.