Tips for Collecting Debts
It can be hard to put pressure on a customer, especially someone you have known for awhile. After all, he or she may have just forgotten or may need some more time. If your business is going to last, however, you must be prepared to do what it takes to collect what you are owed. Unfortunately, broken contracts and outstanding debts are a very common part of doing business.
Collecting debts without angering or alienating clients can be a challenge, but it is also a skill you will need. To learn about legal debt collection strategies and other important business matters, call the Des Moines business lawyers of LaMarca Law Group, P.C. at (877) 327-2600.
Step by Step
Most people understandably feel angry, frustrated, or even insulted when a customer fails to repay a debt. Despite this, you will need to approach the problem calmly and rationally. A few important steps to take include:
- Familiarize yourself with the Fair Debt Collection Practices Act. It spells out what creditors can and cannot do while trying to collect on debts. If you fail to follow these guidelines, even unintentionally, you may actually have to pay the debtor after an expensive lawsuit.
- Contact the debtor, but do not harass him or her. Begin with a letter or invoice giving this person the benefit of the doubt; perhaps this is all a mistake. If that does not work, call him or her, again avoiding direct accusations. Remember, you cannot call multiple times in one day, call this person at work, or use a tone that may be considered threatening.
- Get a third party involved. If a few reminders do not work, you may need outside help both to get the money and protect yourself legally. You may want to pass the debt on to a collection agency, or take the debtor to small claims court. An experienced Des Moines debt collection attorney can tell you about all of your options.
Collecting on a debt is not always a comfortable experience, but a skilled lawyer will know how to make it happen as efficiently as possible.
The Des Moines business attorneys of LaMarca Law Group, P.C. have years of experience helping small business owners achieve success. Contact us today at (877) 327-2600.