Commercial Collections Blog

Is it Business or Personal?

Just like collection agencies, not all debts are created equal. Many factors determine what can be done regarding getting back any past due accounts receivables. The same qualities of debt will also determine what type of agency that can help you and what laws must be followed. The nature of the debt owed is one of the biggest qualities to consider, specifically, if the debt is consumer or commercial. Consumer debts include any service or money owed by an individual not tied to any business. These
debts can consist of medical debts, renters or general services rendered for personal use. Commercial accounts include any transaction between one business and another. To save your time and potential frustrations, knowing just what kind of debt you have, will make your search easier.
Consumer or Commercial Debt

Consumer or Commercial Debt

There are some companies that specialize solely in one debt type. Occasionally you may find an agency that can juggle a bit of both variety, but you want to find a company that focuses their strengths on one. There are a lot more laws and regulations specified for consumer collections. Finding a law abiding legitimate agency for consumer debts can be tricky. Research your top five choices with the Better Business Bureau and other trusted sources for reviews. You want to avoid any and all legal repercussions for breaking any consumer protection laws. The most well known and cited source of protection for the general populous is The Fair Debt Collection Practices Act (FDCPA). There are both federal, state and sometimes county specific laws and regulations that pertain to both consumer and commercial accounts. The FDCPA only relates to individuals and does not protect commercial businesses or agricultural purposes.

Location Location

Not only is the type of past due AR crucial to finding the right kind of collection agency, the state or even country in which your debt resides is significant. A collection company that is licensed and bonded is likely one of the most key important deciding factors in choosing the right fit for your needs. Licenses and bonds assure the clients that the agency is following all state specific guidelines in regards to debt collection practices. They also ensure that the company is held accountable for the business ethics and professionalism. These guidelines entail anything from added fees to proper and fair steps in the attempt of debt collecting. Some agencies will have offices all over the nation but do not be surprised if one central office handles all sales and collections workload. If your debt is in another country, check to see if the agency you are looking to hire is certified to collect internationally. The company will also inform you whether or not any collections can be performed since certain countries are off limits.

Time Will Tell

Past due AR can be anything from 30 days overdue to 2 years. Even if you have already written off the debt or assumed that your debtor will never pay, it never hurts to ask a reputable agency to see if the debt is collectible. Whether the past due AR is consumer or commercial, this factor will also be considered in the time frame. General federal laws regarding the age of the account as well as the state specific rules are essential and standard knowledge of any real collection agency. Some laws may deem that the debt has passed its timeframe for lawsuits, but that doesn’t necessarily mean that a collector can’t still attempt to obtain your money.

Regardless of what you think you may know about the collectability of any past due AR, you should never hesitate to reach out to a live person and ask them for help. You will find that at Burt and Associates, our sales team has a full and extensive knowledge of all debt varieties and are happy to answer any of you questions. Feel free to call us today at 1-877-740-7839 or visit us online

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