While federal law protects individuals who obtain consumer debts, businesses have limited safeguards regarding debt collection. Some states have corporate debt collection laws relating to licensing requirements and statutes of limitation. However, the core guidelines to collect commercial debts properly are found in the code of ethics that applies to certified members of renowned associations. […]
In an interconnected global marketplace, freelancers and business owners often grapple with the intricate challenge of international debt collection. Retrieving overdue payments from clients and customers across borders can be complex, demanding a nuanced understanding of the processes and laws involved. Whether you want to know more about deciphering the stages of debt retrieval, staying […]
Business process outsourcing (BPO) is a growing concept. It first began in the manufacturing industry, and now all kinds of businesses choose to outsource various functions and tasks. As technology advances and businesses become more competitive, outsourcing mundane tasks allows leaders to channel resources to core functions. Your company can capitalize on business process outsourcing […]
Consumers and businesses have several protections regarding debt. These protections keep collection agencies from aggressively pursuing debts or using unethical practices. One of those protections is the Fair Debt Collection Practices Act (FDCPA). The FDCPA limits what collectors can do and say to consumers. It also allows consumers to validate a debt. The Commercial Collection […]
Debt collection is a critical part of running a business. Many businesses run on credit, so they need a strategy to collect customer payments. In most cases, the debt collection process is clear to the customer from the onset of the agreement. However, that doesn’t guarantee that every customer will pay on time. Your business […]
Debt collection and debt recovery, or loan collection vs. loan recovery, sound similar but are two different processes. Debt collection is when a business uses in-house resources to collect client debt. Debt recovery is when a company enlists a third-party agency to complete the process. You may have experience with both in your business — […]
Old debt can come out of nowhere. You may even forget someone owes you money until you revisit your books. Before you make plans to collect on your debt, it’s best to find out how long debt is valid, how long your company can try and collect a debt, and your state laws regarding the […]
Many businesses have an accounts receivable policy that details when and how much should be billed and when the amount should be collected. Though an essential policy, not every company executes this policy effectively. If your business has monthly revenue tied up due to overdue invoices, you may be facing some common issues related to […]
In recent years, the Federal Trade Commission has been clamping down on illegal collections. Consumers reported losing almost $8.8 billion to fraud in 2022, and impostor scams ranked at the top of that list. Though no one wants to become part of this statistic, it can be challenging to tell genuine debt collectors from fake ones […]
Debt collection can be a time-consuming and often frustrating process, leaving you and your team exhausted. While it’s common for companies to struggle with collecting debts, this doesn’t have to be the norm. With a collection agency, you can hand that responsibility over to someone else. Third-party collection firms handle the burden of collecting payments […]
