Navigating the turbulent waters of credit collection takes not just legal knowledge but true compassion for a client’s needs. Our attorneys steer each case with care, pairing shrewd strategy shaped by decades of experience with an understanding ear. We don’t merely gather debts – we craft solutions, whether resolving disputes, brokering win-win compromises, or obtaining judgments with finesse. Through transparent communication and responsive counsel, we empower businesses to profitably reclaim the revenue they are owed. With monthly updates on the legal landscape and your accounts, we illuminate the path so you can avoid pitfalls as your invoices get paid. More than hired guns, we are your partners. Our motivation matches yours – we only succeed when you do. This month and every month, our expertise helps smooth the way so you can spend less time worrying about debts.
There is a common misconception among many consumers that attorneys who engage in credit collection activities are considered “debt collectors” who fall under the regulations and restrictions outlined in the Fair Credit Collection Practices Act (FDCPA). However, this is simply not true. Attorneys who collect debts through legal means on behalf of their creditor clients are explicitly excluded from the definition of “credit collector” under the FDCPA.
The FDCPA is a federal law that governs third-party credit collectors, those companies that purchase defaulted consumer credit accounts for extremely low prices and then utilize various aggressive tactics to try and collect. This often involves repeated harassing phone calls, threats to family members, false statements about legal actions, and other concerning practices. It is these types of external credit buyers and collectors that the FDCPA aims to regulate and restrict. Law firms and attorneys, on the other hand, are typically hired by banks, lenders, and other original creditors to legally collect debts owed to themselves or their companies. They send official demand letters on law firm letterhead pursuing legal collection remedies, rather than bombarding debtors with verbal harassment. Recognizing this key difference, the FDCPA explicitly states that any attorney “collecting debts on behalf of and in the name of a client” cannot be defined as a “debt collector” under the law.
So, while specialized credit collection law firms do technically collect overdue debts, they do so by providing professional legal services to assist their creditor clients. This includes sending legal notices informing debtors of the right to dispute the credit, negotiating alternative repayment options when appropriate, and legally enforcing debts through means such as wage garnishment, bank levies, or property liens. At times formal lawsuits may be filed. But again, these are all legal credit collection practices pursued through the court system, not harassing late-night phone calls. The FDCPA understands this key distinction between professional legal work and exploitative credit buying. In summary, reputable law firms collecting debts are worlds apart from traditional “credit collectors,” and thus are not bound by any FDCPA regulations dictating how third-party credit collectors pursue payments from consumers.
The Differences Between Debt Collection Attorneys and Credit Collectors
Debt collection attorneys are licensed lawyers who use legal expertise and litigation to obtain repayment of delinquent debts. Unlike third-party credit collectors who attempt to collect by contacting and negotiating directly with consumers, attorneys rely primarily on legal avenues. This can include activities like sending official demand letters on law firm letterhead, filing lawsuits and court motions against debtors, or leveraging courts for wage garnishment or property liens. The attorney’s legal knowledge and authority aim to compel payment in compliance with consumer protection laws.
On the other hand, credit collectors typically have more limited tools available to secure repayment of overdue debts. While they can be aggressive in contacting and attempting to negotiate with consumers, they lack abilities to pursue legal filings. Their lower overheads also allow them to provide collection services often at a lower cost compared to attorneys. Credit collectors mainly leverage techniques like letters, phone calls, and negotiation rather than court leverage to resolve cases of nonpayment.
Recovering unpaid debts often requires legal action for optimal results. Our experienced collection attorneys specialize in ethically leveraging consumer protection laws and the power of courts to retrieve difficult delinquent accounts. We tailor customized legal strategies including strategic demand letters, lawsuits negotiating around state regulations, legally garnishing wages, and placing limited liens when needed – all while preserving community reputation. Though initially more costly than in-house efforts, our success rates make engaging competent legal counsel a wise investment when substantial debts seem unlikely to get resolved otherwise. If direct negotiation has yielded little, partnering with our dedicated attorneys can map an effective road forward combining proven legal methods with ethical practices for the best chance at recovery.