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When it comes to trying to recover unpaid accounts from your debtors, the myriad of debt collection laws can sometimes feel as though they're getting in the way. Obviously your main goal is to try and encourage as many late-paying account holders as possible to pay their debts and help keep your business cash flow strong. Communicating With Your Customers - Do you know the guidelines and rules when it comes to communicating with your late-paying customers? The Fair Debt Collection Practices Act protects and regulates the kinds of communications allowed between creditors and debtors. Basically this means that the hours in which you're allowed to contact debtors are limited, so you need to be sure you make your calls during the allowed times. You may also find that there are strictures placed on where you're able to contact customers regarding payment of their outstanding debts. Should you reach a third party in your attempts to reach the original debtor, there are also restrictions on what you share with that third party. You're only allowed to ask the best way to reach the actual debtor. Disputes About Debt Ownership - There may be situations when a debtor may deny owning the debt in question, or that they owe you any money. When this happens, you will need to provide written verification and proof of the alleged debt. Correct Information - It is important that you give accurate and truthful information to your debtor. This means you cant imply that you'll involve law enforcement to arrest them, nor can you give the false impression that you may have legal representation working on your business. You are also under obligation not to falsely imply that you have any government agent chasing after them. You're allowed to give only accurate information concerning the debt, and all of your collection strategies must be in accordance of debt collection agency laws at all times. Should you violate these laws, you could be sued by your debtor(s). They could also collect up to 1 percent of the collector's net worth. It is very important that your business clearly understand the debt collection laws as related to your collection methods. Collection agency laws extend beyond simply getting customers to pay their delinquent debts. You may also need to learn how the changes to the Fair Debt Collection Act may relate to customer access to credit reporting information. They may wish to verify the information listed on their credit report, so you need to be sure the information you provide is always accurate. Business owners that don't adhere to these laws may face some steep fines and they may even find that the debt owed to them could be discharged. Sometimes debt collection can be a difficult process, but as long as you understand the debt collection laws or the collection agency laws and how they can affect which actions you need to take to recoup money owed to you then you may find its not as difficult as it sounds. Knowing what legal actions you can take can also help you with creating and building successful debt collection strategies, wherein you are able to properly communicate with your debtor and recover the debts owed to you .LINK if money is own to you..
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