Commercial Debt Collection Attorney
Save time. Save headaches. Collecting a commercial debt is technical and can require wading through a large number of applicable laws and technical processes. Whether collecting a debt for the sale of goods, a lease agreement, or for services rendered, the process often involves multiple, competing interests and can require as much technical knowledge as it does grit and determination.
For most businesses, that reality simply makes collecting commercial debt too time-consuming and logistically difficult. That’s where Joshua P. Friedman and Associates enter the picture, and with our highly experienced, knowledgeable, and dedicated team handling your collection effort, you can rest easy knowing that your debt will be recovered while you focus on building your business and developing new client relationships.
What Does Consumer Debt Collections Involve?
Consumer debt collection involves recovering money individuals owe for personal, family, or household purposes. It can include debts like:
- Credit card balances
- Medical bills
- Personal loans
- Household bills (gas, water, electric, internet, etc.)
Learn more about commercial and consumer debt collection differences – click here to explore our detailed guide.
Our Focus In Commercial Debt Collections
Our first goal in any commercial debt collection process is always an amicable resolution. In our many years of experience in the collection process, we have found that giving debtors a final chance to pay before resorting to other measures is usually best for all interested parties. Should a debtor choose not to take advantage of that generosity, we are fully equipped and ready to exhaust all legal avenues to collect your debt.
Our team of experienced commercial debt collectors is knowledgeable of all relevant, applicable laws and processes for collecting any debt of any size. We are familiar with UCC guidelines and our ability to combine in-depth legal research and asset-liability analysis means that we can quickly and accurately analyze your case to determine if a lawsuit is the best method to collect. Upon determining the proper course of action, our team can construct a plan for collecting your debts that takes into account your need to collect while remembering that any legal action only lengthens the process and costs more money.
Common Challenges And Solutions In Consumer Debt Collection
Consumer debt collection can present several challenges, such as:
- Unresponsive debtors
- Disputes over the debt’s validity
- Strict legal regulations
We can address these issues through a strategic approach. That approach includes thorough debtor research, effective communication strategies, and adherence to legal requirements. We prioritize understanding each debtor’s situation to negotiate feasible repayment plans while ensuring compliance with all applicable laws.
Laws And Regulations That Govern Consumer Debt Collections
Several key laws govern consumer debt collection to protect consumers from unfair practices:
- Fair Debt Collection Practices Act (FDCPA): Forbids anyone collecting debt from utilizing abusive, unfair, or deceptive practices. It restricts how and when collectors can contact debtors.
- California’s Rosenthal Act: Similar to the FDCPA, this state law further regulates debt collection practices within California, providing additional consumer protections against harassment and abuse.
- Fair Credit Reporting Act (FCRA): This law ensures consumer information’s accuracy, fairness, and privacy in credit reporting. It regulates how debt collection activities can impact a consumer’s credit report.
We ensure compliance with these laws by training our team on legal requirements. We also regularly review and update our practices to ensure they comply with all these laws.
Speak To An Attorney About Your Options
While every case is different and no single remedy for commercial debt collection will work for each individual client, we are confident that together, we can find a solution for collecting any and all outstanding debts.
We encourage you to contact our offices online or call 310-278-8600 to discuss your case and learn about any options you may have going forward in your commercial debt collection process.
Frequently Asked Questions
Below are answers to common questions about commercial debt collections. Understanding these distinctions can help you make the best choice for your business.
What are the legal methods available for collecting consumer debt in California?
Legal methods for collecting consumer debt in California include:
- Sending demand letters
- Negotiating repayment plans
- Filing a lawsuit
- Obtaining a court judgment to garnish wages
- Levying bank accounts
These methods must comply with federal and state laws like the FDCPA and the Rosenthal Act.
Can a creditor legally collect on a debt charged off in California?
Yes, a creditor can legally attempt to collect on a debt that has been charged off in California. A charge-off is an accounting action by the creditor that marks debt collection as unlikely. However, it does not eliminate the debtor’s obligation to pay. Creditors and collection attorneys can still pursue the money owed.
What are the statutes of limitations for different types of consumer debt in California?
What is the difference between a collection agency and a collection attorney?
A collection agency is a company hired to collect debts on behalf of creditors. A collection attorney is a lawyer who provides legal representation and can take legal action to recover debts. For more information, visit our Debt Collection Attorney vs. Debt Collection Agency page.
To learn more about the difference between a debt collection agency vs. a debt collection attorney, click here.
Why should I use a commercial debt collection attorney instead of a collection agency?
Using a commercial debt collection attorney provides several benefits over a collection agency:
- Legal authority: Attorneys can take formal legal action if needed, including filing lawsuits and obtaining court judgments. This authority is crucial for enforcing payment when debtors are uncooperative or when collection efforts by nonlegal means have failed.
- Specialized knowledge: Attorneys have in-depth knowledge of laws relevant to commercial collections, including the UCC and other industry-specific regulations. This helps ensure that all actions comply with legal standards and are tailored to the case’s specifics.
- Strategic approach: An attorney can develop a detailed strategy based on a thorough analysis of the case. This includes deciding whether litigation is necessary or if other legal remedies are more appropriate, and how best to approach negotiation or settlement.
- Risk management: Attorneys help mitigate legal risks by making sure that all collection activities are conducted within the bounds of the law, reducing the chance of legal complications or counterclaims that could arise from improper collection practices.
- Effective negotiation: Attorneys are skilled negotiators who can leverage their legal skills to secure favorable terms or settlements, often achieving better results than collection agencies that may lack the same level of legal acumen.
Collection agencies typically employ nonlegal methods, such as contacting debtors by phone or mail, which may not be effective for more complex or high-value debts.