Business Debt Collection Agency – Protects Your Image
If you employ a reliable and professional business debt collection agency, you can retrieve unsecured debts from consumers with no risk to your corporate image. After all, creditors need to follow certain debt collection laws regarding harassing and when they can contact delinquent debtors. These laws protect the consumer from becoming a liability for a collection agency. These laws prevent collection agencies from calling a consumer repeatedly, threatening them, or contacting the consumer by phone with repeated calls.
Debt collection laws also prohibit collection agencies from attempting to obtain money from consumers for debts that they cannot collect, such as for debts incurred by an individual, company, or corporation. If these agencies are caught harassing consumers by phone for debts they cannot collect, they can be sued by the creditor, which could result in huge financial losses for the collection agency.
Collection agencies are also prohibited from using legal obligations to collect debts from consumers. This includes using any type of collection agreement or contract, including a collection contract or service agreement. Even if a debt is not in writing, this type of agreement is illegal and violates many debt collections laws.
If a debt collector tries to contact a consumer without legal permission or the consent of the consumer’s creditors, the collection agency could be held liable. Even if the collection agency has attempted to contact a consumer with the permission of the consumer’s creditors, the collection agency could still be found liable and could face severe legal repercussions. In addition to being found liable, collection agencies are required by federal law to stop collecting a debt once it is revealed that a creditor has filed a lawsuit against the collection agency.
If the collection agency does not comply with these laws, they could be held legally liable for any damages caused by debt collection activities. If a creditor files a lawsuit, the collection agency will have to provide evidence of why the consumer owes the money and whether or not a court ordered settlement was available. They may be ordered to pay back any outstanding money the consumer owes to the creditors. If a court ordered settlement is not paid, the collection agency may face serious consequences, including fines and even jail time.
In order to make sure you have the most professional debt collection agency for small business near me consider hiring a business debt collection agency. You can get a professional to handle your collection needs and keep your image as a good corporate citizen.