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Experts Speak

Factors That Make Attorneys Effective at Collecting Debts

No matter what business you’re in, if you sell a service or product, you’re going to run across customers that don’t pay. It’s probably the worst part about running your own company, except for actually collecting the debt, which can be much worse. You didn’t go into business to be a debt collector, and debt collection agencies can be less than effective. But, if you hire an experienced debt collection attorney, like those at Prudent Law, you’ll be surprised at how much of what you’re owed you can recover. Here’s why.

People Are Naturally Intimidated by Attorneys

Debt collection attorneys don’t have to be threatening or intimidating to collect what other companies or customers owe you. People don’t like getting letters from attorneys and, quite frankly, it scares them. They don’t have the same reaction to a debt collection agency, whose letters may go ignored for months.

Sometimes, a single letter from a lawyer reminding the customer of their legal obligation to pay and the consequences of not paying is all it takes to get the job done. Moreover, an attorney has the ability to follow through on everything they put into the letter, from filing a legal claim to pursuing it in court. Debt collection agencies don’t always have the power to do this. Even if they have attorneys on retainer, not getting one involved immediately will only prolong the process.

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Debt Collection Attorneys Personalize the Service

A debt collection agency will send out form letters, make boilerplate collection calls, and try to collect as much debt en masse as they possibly can. This is not the approach a debt collection attorney will take, as they understand that personalizing the process to the person or company they’re trying to collect from, they’ll get a better response.

For instance, there may be a reason a company isn’t paying. An agency won’t even try to determine why they’re not paying and come up with a solution so they will pay. An attorney will analyze every aspect of the company to figure out the best way to approach their situation. Often, this can result in prompt debt collection without damaging the relationship.

Attorneys Have More Collection Tools at Their Disposal

There are certain legal tools available only to attorneys that they can use to forcibly collect a debt, if necessary. For example, they can use wage garnishments, bank levies, forbearance agreements, property foreclosures, and other legal remedies to get the company or customer to pay. Debt collection agencies simply don’t have these tools available to them until they escalate the issue to an attorney, which again, drags the process out. 

These tools extend to legal leverages such as subpoenas and contempt of court to force a debtor to appear before a judge to explain why they haven’t paid you. Collection agencies have to stop well short of these legal solutions unless they escalate your debts to a lawyer. Getting a debt collection attorney involved from the start can expedite the entire process and have a better chance at recovering everything you’re owed.

Attorneys Have More Experience

As you know, debt collection is not easy and collection agencies have massive employee turnover because it’s so difficult. In fact, in 2016, the employee turnover rate in the industry was between 75% and 100%. You probably won’t have the same person working on your account from one month to the next and the customers know that.

A debt collection attorney, on the other hand, is not only experienced in collecting a debt because they’ve done it so many times, but they will also be there with you from start to finish. You can rest easy knowing your debt is in their hands and that they will do everything possible to get you paid.

Conclusion

If you’re owed money by customers or other companies, don’t give up and just write it off because you don’t want to deal with a debt collection agency. Hire a debt collection attorney and get the amount you’re owed.

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by Sushree Swagatika

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