In the business of debt collection, there are numerous legal complexities involved. Laws change from state to state and it’s the better debt collection agency that hires attorneys to do their due diligence. Some debt collection agencies are formed by attorneys, and these ones tend to be more prepared for the arduous task before them.
A debt collection attorney familiarizes themselves with the legal technicalities of trying to recover funds legally. For example, bad check laws vary from state to state as do the consequences for writing said bad checks. These differentiations need to be clearly understood before chasing a bad debt.
Bad debt collection agencies don’t understand the legal ramifications of debt collection. From the time window acceptable for making collection phone calls to what kind of contact can be made, there are certain statutes in place in every state that need to be followed. Particularly if a debt collection agency is hired in one state to pursue a company’s debtors in another state, it is essential to know the laws of both states.
A debt collection attorney must also be cognizant of what options are available to them. Are they only allowed to file with credit agencies about a bad debt? Or are they permitted to file wage garnishments? Can they pursue other forms of legal action, like filing lawsuits to collect significant amounts of funds? The ins and outs of debt collection are intricate and care needs to be taken when addressing these kinds of options.
If the debt collection agency hires its own debt collection attorney, chances are, they’ll be a more effective organization for it. Avoiding prospective pitfalls in an already stressful field can only make the process a little easier for both the client and the agency, and even the debtor. If the debtor is scared and can speak to the debt collection attorney, he or she may be able to provide assistance and insight to someone who may have had nowhere else to turn. Although the goal of the debt collection attorney is to get money owed, a debt collection agency might be more successful in the long run with one on staff.
Nobody likes to harangue people for money. It’s an regrettable consequence of difficult economic times. But a debt collection agency that has a special debt collection attorney on staff will be far better equipped to handle legal intricacies than one that doesn’t. It’s much better to be as prepared as possible when dealing with peoples’ livelihoods, for the sake of both the client and the debtor.
Rapid Recovery Solution is an attorney basedspecializing in consumer and . contact them now for more information and for your FREE quote!