Questions to ask before hiring a debt collections attorney

Questions to ask before hiring a debt collections attorney

On Behalf of | May 6, 2020 | Consumer Debt Collection

Debt collection is easier said than done. At some point, companies will have to deal with clients who cannot afford to pay them or simply refuse to pay them. When these types of payment disputes arise, companies should consider using a collections attorney.

But before businesses make that call, they should ask themselves a few questions. Many have used collection agencies that ended up damaging their company’s brand and reputation because of the agency’s inappropriate and ineffective tactics.

Getting the right answers to these questions is crucial:

Are they certified and credible?

If a business is looking to hire a collections attorney, they should check that the attorney has the right credentials. For instance, if the attorney has certifications from ACA International – The Association of Credit and Collection Professionals or the California Association of Collectors, this can help establish their credibility. These certifications are hard to earn, so they show just how knowledgeable the attorney is.

Businesses should also make sure the attorney understands and strictly abides by the Fair Debt Collection Practices Act and California’s Rosenthal Act, especially if collecting consumer debts.

Are they licensed in the state they collect in?

Debt collectors do not have to be licensed in California. However, all debt collections attorneys must be licensed in California, thus giving the client extra security and protection. It is one of the many advantages of hiring a debt collections attorney instead of hiring a debt collection company.

What tactics will they use to collect the debt?

Your reputation is paramount, and you want to ensure the debt collections attorney doesn’t use collections methods that harm yours. You need someone who is professional, courteous, but firm. Talk to the debt collections attorney about the types of methods they use when collecting debts, and then work with them to devise a collections strategy you feel comfortable with.