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1)
Have your clients sign a
contract for service
a.
Include verbiage stating
failure to pay will result in attorney fees and or collection fees
b.
This will hold up in a
court of law that the client was aware of services and understands
their financial obligations to you
c.
This protects the work you
do or the service that you provide
2) The
faster a claim is actively collected the better
a.
The debt is fresh in a
persons mind and they are more apt to pay
b.
Statute of limitations is
current so litigation can proceed if necessary
c.
Suggested time frame for
collections is 90-120 days after debt incurred
3) The
more information on a debtor the better.
a.
name, address, city,
state, zip
b.
social security #
c.
driver’s license
d.
place of employment
e.
emergency contact
Business
information for Business debtors
i.
FEIN #
ii.
Payment division
iii.
Management or owner
information
iv.
Address, fax, phone,
email, website
4) Proper
collection companies and or law firms will run asset checks to
inform their clients whether or not the debtor is viable for suit
a. if the debtor
already has 3 or more judgments the file would not be suit worthy in
most cases due to the take a # and stand in line for wage
garnishment or drawdown on payment
b. free credit
reporting on debtors is a great perk of utilizing a collection
company or collections law firm. Most people will eventually want
to make a major purchase and the debt will have to be cleared up
before making the purchase.
5) Experience
and references are two key aspects to look for when looking for a
collections company
6) Are
my claims bonded if going for litigation?
a.
This is a question to
ask. It will protect the client if there is negligence on the
attorney’s point and protect the claim.
b.
What steps will be taken
in the litigation process?
c.
Will it cost more money
for suit?
d.
Will I get my money back
for court costs if litigation is successful?
7) Always
ask questions. If you don't ask you will not know what is going on
with your file.
8) Request
status on your files to insure accountability of the collection
company you are using. They should be able to provide this
information to you.
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