As a business owner, something you don’t like to deal with is the collection of past-due debts. When customers don’t pay, it can put a strain on your own finances and may affect your business.
If you want to collect, it’s important that you know the right laws and regulations before trying to do so. If you are too lenient on your customers, it’s true that your business could be negatively affected. If you’re too harsh, then customers may refuse to pay, and you may not see any of the money that you were looking for. Additionally, being too aggressive may lead to other trouble with the law.
Debt collectors face many complaints from consumers each year. You don’t want your business to be associated with negativity, so the way you try to collect debts is important. Many business owners decide to work with specific attorneys and collection agencies so that those parties can seek settlements or payments rather than having to do that legwork on their own.
If you need to collect past-due debts, working with your attorney is a smart choice. They are familiar with the Fair Debt Collection Practice Act, and they will be able to help you understand how a debt can or cannot be collected.
If you do decide to collect a debt yourself, some basic rules to consider include:
- Calling at reasonable hours
- Being polite, not harassing
- Being honest about how much is owed
You may want to speak with your attorney before attempting to collect a debt on your own, so you don’t accidentally violate the law and put your company at risk.