It’s common for businesses to acquire quite a bit of debt when first starting out. When businesses take on debt it’s referred to as commercial debt. If you’ve gotten behind on your business debt payments, you’ve likely received calls from debt collection agencies. These calls can be stressful and send you into a panic, keep reading to learn everything you’ll need to know about how to handle commercial debt collection agencies and when you need to hire a skilled commercial collections attorney to represent you.
How Do Commercial Debt Collection Agencies Have the Right to Collect My Debt?
Debt collection companies are working on behalf of the creditor who loaned you the money. Debt collection is regulated by law and allows for creditors to either sell your debt to a collection agency or hire the agency to collect the debt on their behalf. Although the collection agencies have the right to collect the debt there are some protections offered to debtors. It’s important to know your rights and consulting with a debt collection attorney will ensure that you’re being treated fairly.
How Do Commercial Debt Collection Agencies Collect Debt?
It’s no secret that debt collection agencies are aggressive. If you’ve ever had outstanding debts, you’ve surely been victim to incessant phone calls regarding payment of your debt. That’s just one way collection agencies go about collecting on delinquent accounts.
You may also receive certified demand letters from the collection agency demanding payment. Most times, the collection agency’s initial correspondence with your business will come in the form of a demand letter. This will be a formal letter letting you know they are responsible for collecting on the debt. The letter will most likely provide you with information regarding the amount of your outstanding balance along with a due date.
If the collection agency has exhausted its efforts with trying to collect from your business, they may begin judicial proceedings to collect the debt in court. This is where having an experienced collections attorney on your side will be critical.
What Should I Know When Dealing with Commercial Debt Collection Agencies?
If you’re being contacted by a debt collection agency for commercial debts, it’s important to become organized. First, you will need to determine if their claim is valid. Search your records and make sure that the debt belongs to your business. If the debt doesn’t belong to your business, you can raise a dispute with the collection agency. However, if the debt does belong to your business and their claims are valid it will be best to pay the balance of the debt. Keep in mind that if you ignore the debt for too long you may be summoned to court. And remember you can always try to negotiate with the collection agency to pay a lower amount or have the debt paid for in manageable installments.
Receiving endless calls from debt collection agencies is an unnecessary stressor. If you’re being pursued by a commercial debt collection agency for unpaid debts, it’s important you become informed and know your rights. It’s always best to face collection agencies head-on to avoid more trouble down the road in court.