Businesses have the right to seek payment on unpaid balances from consumers. However, commercial debt collection can be a complex process, and it may be necessary for a creditor to seek payment through more aggressive means. Before taking these steps, however, it is beneficial for a California creditor to pursue the option of amicable debt collection.
Examples of amicable resolutions
One way to settle an unpaid dent amicably is through a reasonable settlement. It is possible for a creditor to negotiate a lump-sum payment that is satisfactory, allowing both parties to move forward. This could be the most beneficial and practical way for a creditor to secure a payment in a relatively easy and cost-efficient manner.
Consumers are often as eager to resolve the debt as the creditor is to secure payment on it. The creditor has the right to hear an offer and determine if it is worth accepting. If it is low, negotiations could result in a satisfactory resolution. The alternative to amicable and out-of-court solutions can be seeking a judgment to compel payment or secure funds from a debtor that is unwilling to pay.
Financial interests first
Of course, creditors will want to protect their financial interests above all else. It may make more financial sense to accept or negotiate a settlement instead of pursuing more expensive legal options. To discover the most prudent option for the situation, it may help a California creditor to first discuss the individual situation with an experienced attorney.