It isn’t always easy to get customers and clients to pay the money they owe. Sometimes it is just a small miscommunication that can easily be remedied. Other times there are more difficult circumstances that make repayment a real challenge. Either way, a business owner needs a clear understanding of the Fair Debt Collection Practices Act to ensure that he or she is not penalized in any way for trying to collect a debt.
Contact Times
There are certain times of day that are acceptable to contact customers that owe money. Calls cannot be made before 8 am or after 9 pm. In order to avoid a problem, it makes sense to try and make contact during regular business hours. Because a lot of people are at work during this time, it is possible to contact them at their place of business. However, once a person says—orally or in writing—that he or she does not want any phone calls at work, it is no longer acceptable to use that contact point.
Written Notice
Once a business begins financial debt recovery in New Jersey, it is important to make initial contact. After that, a business needs to send out a written notice that validates that claim of debt, including the exact amount of money owed. It is also important that a business provide information to a customer on how to proceed if he or she feels that they don’t actually owe the money. If this information is missing, a company could be forfeiting its opportunity to collect on the debt.
Ceasing Contact
It is possible for customers to send a notice to a business asking for verification of the debt. This could include an invoice or receipt that would show the amount that was owed. Once this letter is sent, a business needs to stop contacting the persons until the proper paperwork has been sent with proof of the debt. Once this letter has been sent, it is possible to begin to contact the customer again.
Collection Behaviors
There are a host of things that a business cannot say when attempting to collect a debt. For example, an employee can’t use obscene language or threaten to garnish wages (unless a company legally has the ability to follow through with that particular garnish threat). There is a fine line between contacting a customer and insisting that he or she pay their bill, and harassment. Because this line is often blurred and can even be confusing, many businesses turn their past due debts over to a professional specializing in financial debt recovery in New Jersey.
For many businesses, because of all the rules and guidelines, it makes more sense to turn the entire process over to a professional. A debt collection agency understands things like the Fair Debt Collection Practices Act and can work within the limitations to come to the best possible resolution. Professionals can also take it to the next level and continue to pursue debt collection through the court system.