How To Collect Debt

The fact of the matter is, the more time that passes between the time the payment was unpaid and the time the customer is contacted, the less likely you are to be given any sort of payment. If you’re serious about making a profit, there are three ways to handle collection on past debt; in house efforts, hiring a collection agency, or taking legal action.

Collecting the debt by yourself: If the debt is new or small, you’ll most likely start by trying to collect the debt yourself before hiring a collection agency or a lawyer. The most efficient way to start the process of collecting an unsettled debt is by calling the debtor. Many nonpaying customers can talk a great talk on the phone, but then never deliver. If the business is local, aspire to make an appointment with their finance manager to talk face to face.

Another yielding way to motivate clientele to make a payment is by applying a 10 day demand letter. Some collection agencies offer a free 10 day demand letter service that includes postage and mailing of a demand letter sent on official collection agency letterhead. Many times, this is enough to get your customer to part with their payment.

Hire a Collection Agency: Many small businesses don’t initially think of hiring a collection agency to collect overdue debt, but of the outsourced solutions, a collection agency is usually the most cost effective and gets the best results. With a collection agency, you don’t pay until they collect the debt, meaning that the collection agency is highly driven to find a way to get the customer to pay. Because they don’t get paid unless you do, a collection agency tends to work fast and much more efficient when working on a contingency basis.

Today’s new collection agencies don’t use scare tactics or bully customers. Besides, not all clients who are behind on payments are deadbeats. When you choose a collection agency, make sure one of its goals is to maintain extreme professionalism and one that fallows the FDCPA diligently.

Taking the legal road: Another idea to collecting a debt is to take legal action whether by taking the debtor to small claims court or by hiring a lawyer to pursue the debtor.

Rapid Recovery Solution is a national collection agency.

Feds Arrest 2 In Buffalo For Debt Collection Scam

The U.S. Attorney’s office submitted a criminal complaint Friday in U.S. District Court charging Timothy E. Arent and Neil G. Wieczkowski, both of Buffalo, N.Y., with mail fraud and conspiracy to commit mail fraud. Arent is also charged with bankruptcy fraud. The charge of mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The conspiracy and bankruptcy fraud charges each carry a maximum penalty of five years in prison and fine of $250,000.

Assistant U.S. Attorney MaryEllen Kresse aforementioned the complaint asserts that, from September 2005 through the present, Arent and Wieczkowski were engaged in a deceptive debt collection scheme in which they intimidated monetary payments from their victims by means of false pretenses, false impersonation and false representations. The complaint states that the victims were individuals who at one time or another owed some type of debt that had gone into collection status.

According to the office, Arent and Wieczkowski deceitfully told their victims that the victims had failed to respond to summonses, which would result in their imminent arrest. It is further alleged that Arent and Wieczkowski told the victims that the only way they could avoid apprehension and detention by law enforcement was to make substantial monetary payments, usually in a matter of hours. The complaint also charges that the defendants tried to avoid detection by changing the names of their businesses up to 18 times, and by using mail drops and “virtual offices.” Deposits into accounts used by the defendants’ businesses during the scheme were more than $8 million.

The complaint also alleges that Arent filed for Chapter 7 bankruptcy relief in 2005, and that, during the proceedings, Arent fraudulently withheld information from the Bankruptcy Court. The complaint alleges that Arent failed to disclose to the Bankruptcy Court that he had bought a 4,700 square-foot residence in Buffalo worth $500,000 before the bankruptcy, and that, after filing for bankruptcy, he was actively engaged in debt collection work through two corporate entities. Arent’s debts, as well as two civil judgments that had been filed against him concerning his pre-bankruptcy debt collection practices, were discharged by the bankruptcy court in 2006.

Arent and Wieczkowski appeared before Judge Scott Friday afternoon. Ms. Kresse moved for pretrial detention. Judge Scott granted the motion pending a detention hearing scheduled for October 6, 2009 at 2:00 pm EST.

Rapid Recovery Solution is a New York collection agency.

Ten Tips To Effective Cold Calling

Cold calling. Just the name can send chills up your spine. There are effective ways for sales professionals to warm up to cold calling, says John Monderine, President of Rapid Recovery Solution, Inc.. He shares 10 tips guaranteed to take the chill off of cold calling.

1. Define the grade of selling, your selling cycle and the basics of prospecting. Understand your selling cycle and the basis of selling. Know that 90% of your cold call must be spent interviewing your prospect.

2. Use ratios versus numbers. Instead of tacking on more calls to your day, work on bettering the ratio of people that you reach. Call executives in the mornings, during lunch or in the evenings. Work on what you say to your prospects to increase the ratio. “Stand up when you’re talking,” suggests Monderine. “Smile when you speak.”

3. Generate leads and turn them into prospects. “If someone won’t speak with you, they are not a prospect,” says Monderine. “A lead becomes a prospect once they agree to speak with you.”

4. Prepare for effective cold calling. Have your information organized and your product well defined before you make the initial calls.

5. Get past the buffers and protectors. If you call before hours or on Saturdays you are more likely to get past the gatekeepers and directly to the prospect’s voice mail.

6. Use a great opening script. First, greet your prospect by name. Second, identify yourself. Third, make a credibility statement regarding your company, products or services. Fourth, use a reference or allude to a reference. For example, you might say: We work with companies such as Verizon and Sprint. Fifth, state the reason for your call. Here’s an example: Im calling today to make an introductory appointment with you. Id like to see what your company is doing now and if using some of our services would make sense for you.

7. Create the necessary level of comfort. Provide your prospect with the logic and foundation for a conversation. Using a reference helps create comfort.

8. Make the arrangements. Ask for the appointment.

9. Understand and overcome objections and adverse responses. Be prepared for the usual objections or responses by coming up with responses of your own. Answer an objection with a question. For example, if they say: We aren’t interested at this time. You can respond by asking: Well, what are you doing for _____ right now?

10. Follow through. Schedule your appointment, stick to your schedule and execute.

60 Seconds: To get through to an executive or find the name of a decision maker, call the company’s human resources or sales department and ask for their help.

Rapid Recovery Solution is a commercial debt collection agency.

Laws That Can Help During Tax Season

In the present day’s recession the changes seem massive. Just last year a number of tax laws were written to bail us out of dire situations. These are a few new tax laws that you should know about.

The first deals with new car sales and tax deductions. If you purchased a brand new vehicle, including a car, motorcycle, light truck or motor home, on or after February 16th 2009 and by December 31st 2009, any excise or sales tax paid may be seen as a deduction.

In 2010 and 2009 in addition the American Opportunity Credit replaces the Hope Education credit. This new credit is worth $2,500 per student, this is based off the first $4,000 of qualifying educational expenses.

Homeowners that make energy efficient improvements to their existing homes can claim a credit of 30 percent of the cost of all of the upgrades, up to $1,500. This includes things such as adding insulation, energy efficient exterior windows and energy efficient air conditioning and heating systems.

Last year was rough for a number of workers, and layoffs hit record levels. However, unemployment compensation is considered taxable income. But now, the first $2,400 in benefits is excluded from income.

Because of the Bicycle Commuter Act, cyclists will receive reimbursement of workplace transportation costs into a tax favored account and bikers can utilize the cash to put towards purchase of a bicycle, helmet, bike lock, bike parking fees and general bike maintenance.

Finally, if you pay your income tax by credit or debit card, you can deduct the convenience fee that will be charged for the transaction. The card fee, as well as any other IRS approved miscellaneous deductions must exceed 2 percent of your adjusted gross income before they will count. Although this measure limits the value of this break for many, filers with substantial expenses to claim should be sure to add the card fee.

Rapid Recovery Solution is a third party debt collection company. Grab a totally unique version of this article from the Uber Article Directory

Respecting Privacy

It is imperitive that debt collectors respect your privacy. According to the Fair Debt Collection Practice Act, collection agencies cannot exchange information about debtors. They can’t send out a list of people who owe money to its creditor subscribers. They cannot advertise a debt for sale, or compile a list of debtors to its creditor subscribers.

They cannot advertise a debt for the use of sale, or make a list of debtors for sale to others. They are prohibited from leaving messages with third parties asking the debtor to call them. The exterior of envelopes sent by collections agents cannot indicate the purpose of the letter in any way. Postcards are never allowed.

A collector is permitted to send mail in care of another person only if you reside at that address or if you get your mail at that address. If you share your address with others the mail should be labeled “personal” or private. The letter essentially can’t give any appearance alluding to the fact that it is a collections bill.

A debt collector that knows your name and phone number and thus can contact you yourself is not permitted to contact your neighbors or family members. If they cannot locate you and they do call your family members or neighbors, the collector must identify themselves by name but not tell the third party that they are a debt collector.

They can’t tell others you owe money or speak to them about account details. They cannot contact the person more than once, can’t leave information about a the money on another person’s voicemail and they have to disclose the name of the collection agency but only if asked.

If you are being contacted by a collector looking for your former roommate, relative or neighbor, the Fair Debt Collection Practice Act says a debt collector can only contact you to determine the location of the person who owes the money. Only if the collector believes you have new information can they contact you again. If a collector contacts you repeatedly about a third party that can be considered harassment and you can file a complaint.

Mallory McGuinness-Hickey is an employee of Rapid Recovery Solution and writes articles on debt collection and finances.

Collection Agencies 101

If the person in debt agrees to pay, the bill collector will record this commitment and will check up later to make sure that the payment was made. If a debtor does not pay, the collector will draw up a statement about their delinquency for the credit department of whatever company they are working for. In extreme cases, debt collectors may request repossession, hand over the account to a lawyer or disconnect service.

Debt collectors have to be careful to follow the Federal and State laws that apply because people’s financial problems can be sensitive issue. The Federal Trade Commission states that a collections agent must positively identify the person who owes the bill before they are able to tell the debtor that the purpose of the call is to collect debt.

The bill collector will then issue a statement, sometimes known as a “mini-Miranda” that lets the customer know that they are in fact a collector.

Additionally, debt collectors must abide by the state laws that dictate how they must proceed. A lot of companies use electronic systems now to help bill collectors remember all of the laws and regulations regarding each call.

Collectors use computers and an assortment of automated systems in their jobs. Companies will keep track of their accounts by using computers, and collectors are able to keep track of collection attempts in the past and other information in notes on the computer. As with most call centers, collectors use headsets in lieu of regular phones. Automatic dialing allows bill collectors to work efficiently and quickly and with no chance of dialing the wrong number. Typically, in house bill and account collectors work in an office environment, people who work for a third party agency may work in a call center type environment.

The work has the capacity to be stressful; people get confrontational when they are asked about their debts. The best collectors have to face rejection regularly, but still be prepared to make their next call in a positive tone of voice. Luckily for them, a number of debtors appreciate help in resolving their debts.

Mallory Megan works for a debt collection agency. Also she composes stories on business, finance, consumer spending and collection agencies. Get a totally unique version of this article from our article submission service

Protect Yourself Against Debt Collection Scams

The government is stepping up as debt collection scams rise. In recent news, Buffalo New York has been home to a number of unlawful debt collection practices, and authorities have arrested at least twelve people. Although the vast majority of collection agencies are legitimate and good for the economy, there has been a rising amount of deceptive and illegal practices.

In Buffalo, collections agents have been caught calling up people that owe money and posing as law enforcement. They have threatened to send people that owe money into jail, or even take child custody away from them. But it doesn’t stop there.

A civil case recently imposed a $675,000 penalty, the most ever fined for a debt collection company, for deceptive and illegal practices. This includes lying to consumers and badgering them, disclosing their debt to third parties, and cashing in on post dated checks early. These tactics were accompanied by deceptive claims from agents saying they were lawyers or other figures of authority.

In addition to refusing to reveal the address or phone number of the “company” these agents even went as far as to call individuals who did not owe any money at all and attempted to collect from them. Despite claims that it was individual workers acting fraudulently, the Federal Trade Commission went after the business owners and won a case that imposed the biggest penalty ever for debt collection agencies.

To skirt around the issue of being a victim to fraudulent debt collection agencies, it is crucial that you know your rights. A debt collection company is never permitted to seize a debtor’s assets, bank accounts, or paychecks. They are unable get a debtor fired from their occupation, and cann’t make any kind of public disclosures concerning the debt, and they can definitely never threaten or engage in violent acts.

For more information, refer to the Fair Debt Collection Practices Act, which outlines the rules and regulations of debt collection.

Mallory Megan is employed by a collections agency that works with a debt collection lawyer. Also, she does stories on business, finance, consumer spending and collections agencies. Get a totally unique version of this article from our article submission service