Business Debt Collection Rights

Troubled small to medium-sized companies increasingly face the reality of having to deal with business debt collectors.  These people fulfill an important function for creditors.  But as in any other area of human endeavor, there is the good and the bad.  Unfortunately, a few seem to think that they can get results by being abusive and obnoxious.  business-debt-collection-rights

What exactly are your business debt collection rights? What can and cannot business debt collectors do?

If your business is coming under collection pressure, you have some legal protections from harrassment.  But business debt does not fall within the provisions of the Fair Debt Collection Practices Act.   This legislation protects consumers – not businesses – from being unduly hassled by debt collectors.

You have the right to ask the collector to provide you with documented proof of the debt being assigned to the collector by your creditor and also particulars of the actual demand that’s being made.

Once you have received this, you can start communicating with the collector.

A mistake made by many business people is in believing that a collector has absolute power over them and that they can immediately freeze their bank account or sent in the sheriff to remove their assets.  Nothing could be further from the truth.  A collector has no ability to do anything other than attempt to persuade you to pay them.

Collectors are motivated to get paid because they receive a percentage of the money you give them.  And this can be up to 50% for debts that are six-months over-due.  No wonder why some of them are so aggressive.  They have quotas and car payments to make.  They might threaten and cajole about sending the account to an attorney.  But they lose out, big time, if they do this.  The big money is made in collecting directly from your business.

If you don’t pay the collector, the creditor may assign the account to an attorney, who can eventually file suit.  After a suit has been filed, you still have legal rights to delay the case.  Depending on the size of the debt and whether or not you feel that the creditor was unjustified in all or part of its demand, you can file an Answer.  In some juristictions you can effectively delay eventual resolution for a year or more.

At any point along the way, whether with the creditor, collector or attorney, you have the ability to submit a settlement proposal and get successful resolution to meet your needs.  It’s usually best to do this before the matter gets to court.  But debt disputes can be settled at any stage, including after  judgment has been awarded to the plaintiff/creditor.

While the collection industry has to reign in the excesses of rogue business debt collectors, the better ones are actually persuasive and mild in their approach.  They realize that they have to understand the true situation faced by the business.  And that it can be counter-productive to practice harrassment and abuse.

It helps greatly to have a buffer between collectors and attorneys when you are doing everything in your power to stay focused in order to generate revenues and stay in business.  You also need to be able to cut business debt settlement deals that will help your company to survive – not speed its demise.  Of course we can handle this entire process for you here at Biz911.com

We have satisfied hundreds of clients since 1995, helping them to resolve their business debt and revenue problems and getting them back in the black.

If you haven’t already done so be sure to request a copy of our FREE Report called, “How To Get Relief For Your Cash Strapped Business!”

To get a copy of your FREE Business Debt Report, simply enter your name and email in the form to the right of this post.

Or, if you want to speak to someone immediately, please call us at 888-701-7888.

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