Your company has a number of outstanding payments from customers. You are ready to take the matter in your own hands and convince these customers to pay what you owe them.
Before you pick up the phone, you should know that the debt collection in the debt collection is a delicate process. If you don’t know what you do, you can stumble into a serious mistake – or some of them.
Common mistakes that make companies in the DIY -Sinkasso
Credit: Ivan Samkov via Pexels
1. Violation of the law on fair debt collection practices (FDCPA)
If you are not careful with your debt collection, you can accidentally violate The law on fair debt collection practices (FDCPA). The FDCPA is a federal law that determines clear guidelines for how companies can interact with debtors. Violation of this law could bring your business with a fine or a lawsuit.
Violations of the FDCPA is an too everyday problem. The Annual report of the Consumer Financial Protection Bureau At FDCPA, the office explained around 109,900 debt collection from consumers in 2023 alone. The complaints covered violation Make frequent calls.
If you are not familiar with all the rules of the FDCPA, it is easy to accidentally break these rules.
2. Documents not kept
Paper stuff is very important when it comes to debt collection. If you have no evidence of payment inquiries and customer communication, your company is more susceptible to disputes about debts. You must have a clear paper path.
3 .. Use aggressive communication
Not being paid can be very frustrating, but you still have to be calm and professional if you contact customers who do not yet cover your payments.
You don’t want to make the mistake of using aggressive communication tactics, e.g. For example, to make frequent calls, leave angry voicemails or contact the customer’s employer in order to get a customer to pay his debts. There are two big reasons why this is a mistake. First, it is a violation of the FDCPA. Second, it is not effective.
If you are too aggressive with the collection, customers will probably solve their debts less. You may not react to your attempts to communicate and can still remove payment.
How professional debt collection funds can help companies
Avoid this joint collection error by contacting an experienced debt collection agency for help. Instead of trying the DIY approach, let the experts tackle the job for you.
Compliance with the collection regulations
You may not be aware of the regulations of the FDCPA, but a debt collection agency will know you and will follow you for a t -shirt. All collective efforts that an agency provides for your company will be legally compliant, which means that you can avoid consequences such as complaints and fines.
Effective recovery methods
Another good reason why you should turn Experts -debt recreation solutions Do agents know how to achieve results? Agents will know that they contact debtors, communicate the problem and pay the debts without damaging the excellent reputation of their company.
Access to the transfer of exaggerations
One of her customers seems to disappear into air after the lack of payment. Everything is not lost. A collection agency with a department for skip tracing department can help you find this “missing” customer and contact him for the debt collection.
Prevention of future debt problems
Some debt collection agencies offer preparation services. Your company could use these services to encourage customers to make payments on time and to avoid crime. Some preparation services include sending memories for the due dates of invoices and the arrangement of payment plans for customers who cannot cover a large flat amount.
Making a training error is not worth the risk. Set a collection agency to do the delicate work for you. Getting professional help is never a mistake.
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