Recovering your debts can be frustrating and time-consuming, especially if you don’t do it correctly or know how to do it. That’s why our skilled lawyers at Massachusetts Debt Collection Attorneys offer diverse services to help you retrieve your debts efficiently, successfully, ethically, and in less time.
Our services
Understanding the lawful landscape
Recovering your company’s money is essential. While recovering your debts, your rights also need to be protected. Our law firm ensures you comply with the Fair Debt Collections Practice Act to avoid bumping into unlawful debt practices.
Deliberate negotiations
Our lawyers gather sufficient information concerning the debt and debtor and devise strategic negotiation strategies. We aim for amicable and favorable payment through open, effective communication and setting attractive settlement plans.
Pre-lawsuit and post-lawsuit negotiations
We explore all available options before lawsuits whenever possible. We also help you swiftly navigate the litigation in the small claims court.
Ethical representation
We exercise the highest ethical standards throughout the process.
Understanding the rules of collection in Massachusetts
As an attorney, familiarizing yourself with the rules is critical. If you need to know how the landscape works, follow the right path. The four most important things to keep in mind are;
The Fair Debt Practice Act
Every debtor has a right to fair treatment when asked to pay their dues. The law prohibits collection agencies from exercising the following activities on their clients;
1) Calling clients at their homes more than twice about the same loan seven days a week and more than twice about the same loan in 30 days.
2) Failing to identify yourself during a phone call.
3) Shouting, threatening, harassing debtors.
4) Calling them past working hours, 6 a.m. and 9 p.m.
5) Calling your clients when they’ve not requested a call.
Exempted items
After the judgment, most creditor agencies like to go after the debtor’s items to recover their loans. This is especially the case for items with high costs. Did you know there are exemptions on certain items?
Wage garnishment borderline.
The most a judgment creditor can garnish from a borrower’s wages is 15% of the gross salary. Federal law also allows this amount to be translated to 25% of his disposable income.
Statute of limitations
The statute of limitations varies. It’s six years for consumer-related dues like credit cards and 20 years for judgments.
Negotiation strategies by attorneys used to achieve favorable outcomes
Gather information
Imagine this. You want to go to Alaska for the first time. What’s the first thing you’ll do? You’ll research the climate there, what to wear, places to stay…
The same applies to a new borrower you’ve been tasked with as an intercessor attorney. It’s the first and the most crucial step before doing any negotiations. Gathering enough information about a borrower and the creditor forms the basis for making an informed and well-thought decision. Collect information like;
1) How long has this client serviced a loan with this credit company?
2) How long does this loan run for?
3) How much are they supposed to pay in each installment?
4) What is the client’s credit history?
5) When did he last pay?
6) What has he been doing to be able to service this loan?
After gathering answers to the above questions, look for a way to communicate with the debtor. It could be through a phone call. It could be through paying him a visit where he lives. It could be done by sending him an email.
Crafting attractive settlement plans
Let’s say you’ve successfully reached him through any of the above communication channels. Try persuading him to pay by offering attractive, irresistible settlement plans. The aim here is to get the dues paid in the most amicably. For example, you might find that this businessman has not been on his heels for two months, and the business collapsed, or it’s not generating much income. He proposed paying less than he initially paid until the company returned to where it was. You can even suggest doing a lump sum payment. After you’ve agreed with the borrower, communicate your decision to the credit company. Ask them about the progress of these arrear days after agreeing. Some debtors will honor their commitment and pay, but some will not. If the latter happens, pursue post-negotiations strategies.
Advice the credit company to draft a demand letter
A demand letter is written to a debtor asking him to clear his dues when he fails to honor his commitment to pay the outstanding arrears despite constant reminders or requests. It is legally acceptable to draft a written communication to a client whose account is 30 days in arrears and who doesn’t want to comply. The demand letter contains the client’s name, outstanding loan balance, interest rate, due date, the last date, and the consequences of not paying the dues. Most of the time, some debtors may be scared after reading the letter and reciprocate by paying their dues. Some will remain unreactive and decide to wait to take action even after reviving the letter. If that is the case, proceed to the next step.
Filing lawsuits
In Massachusetts, filing a lawsuit for loans less than $7000 requires using a small claims court. The debtor must appear in court, and a sanction or fine is imposed if he fails to show. Don’t forget to check the expiration date of the statute of limitations.
Holding open communication
Communication between the client and the lawyer is the foundation of a successful negotiation. As an attorney, openly communicating with your client or a debtor helps shed more light on the case. While having these conversations, try to understand where the challenge in clearing the dues might be coming from and advise appropriately.
Keep a record of the efforts
Creditors indirectly prefer employing the help of attorneys through agencies or a law firm to help them retrieve their debts when the debtor becomes uncooperative. They may also directly enlist the help of these attorneys. They often communicate with these debtors via reminders, phone calls, and even phone calls. The phone calls can help you decide the terms of the client’s character. Checking these records can give you an idea of how to deal with a debtor.
Be ethical
As an attorney, remember to be ethical throughout the process. Avoid harsh words, threats, and abusive language when dealing with clients. If you realize the debtor is hostile and wants to get physical, refrain or walk out.
What you get from Mass Collection attorneys
With over 60 years of experience handling more than 15,000 clients, our team is dedicated to driving positive results for your organization. Our skilled attorneys can help you maximize your recovery efforts with their firm knowledge and grasp of law negotiating skills while protecting rights. Reach out to us and book a free consultation.