Share This Post
Collecting Debts Owed to You from the Other States
Although there are collection laws that cover the entire United States, including the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA), each state may also have its own laws regarding debt collection . If you have a company that issues credit and often does business across state lines, when a customer defaults, you may struggle to collect the debts owed to you from other states. Massachusetts debt collection attorneys can help you collect the money you are owed.
Collection Firms in the Different States
Using Boston debt collection lawyers prevents you from dealing with several collection firms in different states. Instead, the attorney creates a cohesive and centralized collection system that will save you time, money, and resources. Keep in mind that an attorney is not a collection agency. This means that they are well-versed in the laws of many states, not just the laws of Massachusetts. A debt collection attorney does not get paid if they do not collect, so it is also in their best interest to follow the letter of the law.
Various State Laws
Many states follow the federal laws regarding debt collection, but others have passed their own laws related to collecting debts. For example, although Texas adheres to the federal law, there are special laws that limit what a debt collector can do, including threatening to garnish wages. Texas law only allows the garnishment of wages for child support, back taxes, and defaulted student loans. In Massachusetts, anyone who makes less than 50 times greater the hourly minimum wage may not have their wages garnished. Anyone who makes more than that could have 15 percent of their wages garnished. These are just two examples of the importance of using a Massachusetts debt collection attorney.
Initial Collection Process
When a bill is a past due, the first step in the collection process is usually letters or phone calls to try to collect the debt. The delinquency is usually reported to credit reporting agencies as well. There are limits to how often a debt collector can call you at home and, if you inform the collector you cannot receive calls at work, they are no longer allowed to contact you there. This means that a debtor can ignore phone calls or letters, keeping you from getting the money you are owed.
Additional Steps to Collect
As a Massachusetts debt collection attorney, we are not a collection agency. This means that we have a deeper understanding of the laws in every state that allows us to collect what is owed to you. Often the next step in collecting a debt is to file a civil lawsuit against the debtor. Although it is possible for you to file a lawsuit on your own in small claims court, if the debtor lives in another state, you may not know what forms are necessary and it could be difficult for you to attend any court hearings. The legal process can be complicated which is why it is best to let an attorney from Boston file small claims cases for you.
One of the most important parts of collecting once a judgment has been issued is to identify what assets the person who owes you may have. If they are in another state, identifying those assets can be difficult. As a specialist in debt collection Massachusetts companies trust, we will search for bank accounts, property, vehicles, and any other asset that may be seized to pay you what you are owed using the laws of the state in which they live.
One of the best parts about this service is that we don’t receive payment unless we collect what you are owed. This gives us the incentive to succeed. Often, traditional debt collectors will accept low settlement amounts, especially if they have purchased the debt from you for a small amount that is owed. Because we keep a percentage of what we collect, we are less likely to accept small settlements as the more we collect for you, the more we will make as well. We can work out a fee schedule that works best for you, even offering a non-contingent fee for a reduced collection percentage. If you have a high volume of collections, we can even agree on a set percentage. We will provide you with a written fee agreement so there are no surprises.
We are successful at our nationwide collection efforts because we don’t simply accept any case. It is our belief that when we accept a case, we have an obligation to follow through. Our contingency fee process gives us the same interest in collecting a debt as you have. We understand that the sooner you can get a past due account off of your books, the sooner you can pay your bills or use those funds to generate more business. It is also important to understand that, as attorneys, we are aggressive. The debtor receives a letter with a set deadline to pay the balance. If the balance is not paid by the deadline, we will take legal action. If the debtor offers a settlement, we will inform you of the offer and you can make the determination of whether to accept it or not.
If you are a business owner and find yourself owed money by someone who is in another state, contact our office today to arrange for a no-obligation consultation to see how we can help you. Arrange for your consultation by calling 1-844-MASSLAW or by filling out the online form today.