Having your account transferred to a collections agency does not signify the "death" of one’s business. Financial analysts understand that there are mitigating circumstances that may cause a company to be late in its payments. That said, many executives take the hit rather seriously and consequently ignore the realities of the situation. This includes not knowing or understanding their rights. Reputable collections agencies remind their clients on both sides that they strictly abide by mandated laws. There are laws that limit what debt collectors can say or do.
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The Fair Debt Collection Practices Act (FDCPA) defines the limitations on what every debt collector can do when collecting particular types of debt. The federal law also describes how debt collection is reported in credit reports all with specific state protection policies. The FDCPA encompasses the debt collection of mortgages, credit cards, medical debts, and other debts that for personal, family, or household purposes.
There are many stipulations recorded in the FDCPA, but all of these policies are based on the foundation of protecting consumers from debt collection companies that use abusive, unfair, or deceptive practices to collect debt. While the FDCPA does not cover business debts, company owners should know that unlawful or abusive acts of business debt collection agencies such as calling at irregular hours or practicing rude behavior are still considered unlawful. For these cases, entrepreneurs can speak with a legal professional to see what actions can be taken. It is highly recommended though to talk to the collections agency first before considering any legal action. Usually, the company will handle its representatives personally. However, if there is indeed a discrepancy between the company and the collections agency, it may be best to seek a mediator. It is also suggested to keep a record of all correspondence as proof of evidence.
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One of the reasons Brennan & Clark Collection Agency is a leading collections group is their transparency in all of its actions. For more on business debt collections, visit this blog.
