The commercial collections process is subject to certain laws and an ethical commercial process is essential to staying in business. Yes, collections can be difficult and frustrating. However, it is important that you and your employees maintain an air of professionalism and obey collections laws. Otherwise, your business could be named as a defendant in a lawsuit that involves the government as a plaintiff. Here are some ways that you can ensure that your commercial collections process is above board.
Provide Requested Debt Verification
If a debtor requests verification of the debt, it is important you provide it. Indeed, in many instances, the collections process cannot continue until you provide the debtor with the requested documentation to verify the debt. Furthermore, it is important that you're looking to collect from the right business or person. When someone creates a legal business entity, it can protect the individual from debts that were incurred by the business. Therefore, it's important that you're able to prove that the debt is truly owed. An experienced commercial collections attorney can assist you with this.
No Threats, Vulgar Language, or Other Abusive Phone Tactics
Both federal and state laws define what you can and can't do during commercial collections. Some of the most common violations include making threats, using vulgar language, and employing abusive tactics. Intimidations can include, but are not limited to, implying you will have the debtor arrested or that you will sue, and threatening to sue (unless you plan on actually suing). Vulgar language includes name calling and using curse words. Abusive tactics can include calling outside of regulated hours, continuing to call after the debtor requested the calls to stop, and harassing the debtor or their family or in some way.
Always Act Professional
Make sure that you and your employees act in an ethical, professional manner when engaging in commercial collections. You should also make sure that any collections agency or lawyer that you hire to help you understands and abides by professional standards during the process.
To speak with a top collections attorney, contact Ronald P. Slates today.