4 Questions About Debt Collection
As a premier debt collection agency located in Seattle, Washington, Clients A.R.M. receives a lot of questions about debt collection. These questions often shows us the common misconceptions that business owners have about debt collection. That’s why we decided to put together this reference guide about the misconceptions about debt collection.
Can I Call a Delinquent Customer Anytime?
The short answer is no. You cannot try to collect your debt at just any time of the day or night. The Fair Debt Collections Practices Act states that you cannot try to collect on a debt at inconvenient times. What’s an inconvenient time? Generally, an inconvenient time is any time before 8:00 AM or after 9:00 PM unless you have the debtor’s permission. Also, you can’t call debtors at work if they ask you not to call their job.
Can I Contact Friends or Family of the Delinquent Customer?
Another misconception that business owners have is that they believe that they can call the friends or family of their delinquent customer. If, during the course of debt collection, you find out that the customer has an attorney, you must contact the attorney about the debt. Yes, you can call family or friends of the customer, but you are limited as to the information that you can give out or that you can say. Debt collection efforts are often limited to calling each person just one time.
Do I Have to Provide Verification of the Debt?
If the delinquent customer requests it, you must send a written validation notice that lets the person know how much they owe you. This notice must be sent within five days of request. It must also list your company name and contact information. You should also include instructions on what this person should do if they do not believe that they owe you the money.
What Happens if I Break the Law?
Unfortunately, not all business owners are well versed in debt collection law. If you plan on doing your own debt collection, we urge you to become intimately familiar with the laws related to debt collection. If you break these laws, you could face legal consequences and costly fines that run into the thousands of dollars.
Getting Expert Help With Your Debt Collection
Clients A.R.M. knows that debt collection can be a scary proposition for small business owners. There are many laws to follow. It’s also time consuming. Fortunately, you can get expert help with your debt collection needs. Located in Seattle, Washington, Clients A.R.M. is licensed as a debt collection agency in several states. We provide more than 30 years of experience and work with your delinquent clients to help you get paid. If you’re ready to find out how Clients A.R.M. can help you with your debt collection needs, contact us for your free review. There’s no obligation. We will explain exactly how we can help your business get the money that is owed.