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.

Bankruptcy And Debt Relief

With consumer debt at an all time high, owing money can seem overwhelming. Many people have looked into the internet and have seen advertisements touting debt relief as a quick fix. Enticing as these ads may seem, it is important to be on the lookout for the validity of the claim.

Many of these promise a quick fix, but that quick fix may be bankruptcy. Yes, bankruptcy is one way to address your financial issues, but in most cases it should be a last resort. The fact that you claim bankruptcy stays on your credit report for ten years which means that your chances of getting credit, jobs, a place to live or insurance are significantly lowered.

It’s a good idea to think about other alternatives before claiming bankruptcy. Have a talk with your creditors. Sometimes a re-payment plan can be worked out that is modified or can be paid in installments. Credit counseling services can work with you and your creditors to make debt repayment plans.

When you are considering a second mortgage, be careful. These loans require your home as collateral. Bankruptcy can stop foreclosures, debt collection activities and it may get rid of unsecured debts. Exemptions are provided that let you keep certain assets. However, personal bankruptcy does not usually take away child support, fines, taxes, alimony and in a few cases student loans.

It will not usually let you keep your property if your creditor has a security lien or mortgage that has not been paid. A relatively recent change in bankruptcy laws creates certain tasks that you must complete before you can even file for bankruptcy, no matter what type of bankruptcy. First, you have to get credit counseling from an organization approved by the government within six months before filling.

Also in some cases you must pass a test that requires you to confirm that your income doesn’t exceed a certain amount.

Mallory Megan works for a debt collection company. Also she composes stories on business, finance, consumer spending and collection agencies.

Know Your Customer: Good Business Tips

Running a business can be hard. A lot of the time it is necessary to hire a debt collection agency for help collecting money that is owed. However, if companies take a position of prevention, they may not require using the assistance of a third party collections agency. Knowing the client or customer can be extremely useful for filtering out potential problems.

First, a business should determine the full legal name of the customer that it plans to do business with. Find out the type of business structure. Is it a corporation or a partnership? The names, addresses and titles of the principal members should be collected.

It is key to find out the federal employer tax identification number. The telephone number, ship to address, name, fax number and email address of the main contact should be established as well. Also, the bill to address, fax number and telephone number of the accounts payable contact is a useful piece of information to know. Individuals authorized to submit orders should be listed.

Inquire about the bank references. What is the name of the bank? The branch address, fax and telephone numbers, account types, account numbers and dates opened can be useful information. The name of the bank representative should be collected also.

Finally, the terms and conditions of sale should be acknowledged and accepted by the client\’s signature. The customer\’s signature, printed name, date of signing and title should be collected, and always have the company\’s lawyer look over any documents before use.

Be aware of the customer\’s credit history and keep decent communication through phone calls or personal visits. Keep an up to date delivery of goods and services, and up to date records and accounts receivable information. Mail out memos and letters to remind the client about the money owed and keep them up to date.

Join an industry credit group and participate actively. It is crucial to know the laws in the state that the company is in regarding collections and business proposals. To protect the company, it is crucial to collect references. Bank references, including the bank name, branch, account type, account number and trade references are important to know. Collect three trade references at least that include the name, address, telephone number and email addresses.

Mallory McGuinness is employed by a debt collection company. Also she writes stories about finance and business, consumer spending and debt collection.