Writing a Demand Letter

How do you craft a demand letter to your debtor?

It may vary depending on the situation, but here are a few pointers you can always count on:

Demand letters should be personal; that is, they should be directed to a specific person and personally signed. Whenever possible, identify a person in the debtor’s company who has the authority to pay you, and send your letter directly to that person; sending letters to the wrong people doesn’t get you anywhere. If your demand letter looks like a form letter or isn’t directed to a real person, it will be treated like a form letter (thrown in the garbage). “To whom it may concern”? If your debtor doesn’t want to pay, nobody’s concerned (except you).

Read more in our latest article.

Take Care of Debtor Communication with Michigan Debt Collection Services

When you use our Michigan-based debt collection services, you don’t have to worry about doing all the communication yourself. We take care of it for you! To get started or ask questions, call (248) 645-2440 or submit a contact form here. We look forward to hearing from you!

Intro to Communicating with Debtors

How do you remind a debtor to pay without making them angry?

Effective communication with debtors is hard work. It involves both the art of persuasion and a creative imagination. Think about it: who really wants to pay a debt? Obstinate debtors are a tough audience, yet your job is to persuade them to pay up. So how do you draw your debtor’s attention to your past-due bill and create the desired sense of urgency?

Your demand letter should convey in the clearest possible way that the bill must be paid. The initial demand letter should come across as a friendly reminder so you maintain customer goodwill, and at the same time help you get paid. Remember to make it easy for your debtor to reach you. Include the name and phone number or email address of a contact person at your company so any questions or comments can be easily raised by the debtor and quickly addressed by your company.

Read more in our latest article.

Take Care of Debtor Communication with Michigan Debt Collection Services

When you use our Michigan-based debt collection services, you don’t have to worry about doing all the communication yourself. We take care of it for you! To get started or ask questions, call (248) 645-2440 or submit a contact form here. We look forward to hearing from you!

The Standard Behavior of Debt Collectors

Is it hard to find an ethical debt collector?

The answer is no, it’s actually not hard to find an ethical, responsible debt collector. Consumer laws such as the Fair Debt Collection Practices Act arose from the misconduct of a few irresponsible, abusive debt collectors, not the majority. These consumer laws have cut back abuses. Scrupulously following these laws, even when they don’t apply, can help ensure professionalism and avoid misunderstandings and other problems. 

Unless you negotiate specific file handling procedures, your collections professional operates in accordance with their own standards. When you desire a more restrictive standard of conduct, don’t hesitate to instruct your collector to follow your standards. For example, you may limit the number of demands that they make to a debtor before filing collection litigation.

You should be comfortable that your outside collectors are well-trained and professional, and will handle your customers (debtors) with dignity. None of those hallmarks of professionalism are incompatible with aggressive debt collection. The bottom line is that you want your collection professionals to follow a standard of ethics that’s as similar as possible to the ethical standards of your own business.

Read more about this in our latest article.

Have Confidence with Michigan Collection Companies

Are you in Michigan and anxious about hiring collection companies?

You don’t have to worry about unethical or unprofessional behavior occurring with the Muller Law Firm. If you need a second opinion, check out reviews from our happy clients. To get started or ask a question, call (248) 645-2440 or submit a contact form here. We look forward to hearing from you!

Working with a Collector: How Your Business is Responsible

Did you know that when you work with a collector, your business takes responsibility for their
behavior?

When you hire collection professionals and include them on your collection team, you assume responsibility for the professionals to be, indeed, professional and ethical in their services. But at the same time, you give up some of your control—perhaps a lot of your control—over the collection.

Beyond the possibility that your collector’s misdeeds may frustrate your ability to collect a debt or trigger a counterclaim, their actions are being taken in your name. The type of service you use to collect your debts will reflect on your business, and every time you place a claim with an outside collector, you put the reputation of your company on the line.

By nature, the collections business is adversarial. Debtors don’t like to pay debts, and nobody likes to be confronted with aggressive collection efforts. Not all collectors act ethically or legally, and those problem solver-type news segments love to showcase abusive collection tactics. Your company doesn’t want to find itself at the center of adverse publicity as a result of debt collection gone haywire.

Read more about this in our latest article.

Have Confidence with Michigan Collection Companies

Are you in Michigan and anxious about hiring collection companies?

You don’t have to worry about unethical or unprofessional behavior occurring with the Muller Law Firm. If you need a second opinion, check out reviews from our happy clients. To get started or ask a question, call (248) 645-2440 or submit a contact form here. We look forward to hearing from you!

Entering a Contract with Your Collector

What kinds of things do you need to agree on with a collections professional?

You want to make sure you have written contracts with your collections professionals. You may enter into contracts on a claim-by-claim basis, or you may sign a contract that defines an overall relationship with your professional, perhaps to be renewed annually. Your contract should include provisions detailing what services you’re using and what they cost so that both you and your professional know exactly where you stand before your relationship begins.

The collection industry is highly competitive, and you can expect competitive rates. You may agree to pay professionals by the service, by the hour, or on a contingency basis, where their fee is a percentage of the amount they recover.

Read more in our latest article.

Need Debt Collection Help in Michigan?

Our firm has you covered!

If you’re frustrated with a lack of action from your debtor, our lawyers can help you with debt collection in Michigan. If you have questions about any part of the collection process, or if you’re ready to place a claim, call us at (248) 645-2440 or submit a contact form here.

The Basics of Contingency Fees

What is a contingency fee?

When you enter a contract with a debt collection professional, there may be a contingency fee agreement. A contingency fee is money that a lawyer only gets if your case is won. A contingency fee agreement should describe:

• When and how amounts recovered are to be remitted: For example, your agreement may require that payments by check be remitted when the debtor’s check clears the bank, or, for a certified check, immediately upon receipt. If the service is collecting multiple accounts, you may choose to schedule payments of remittances (e.g. biweekly or monthly) rather than separate payments for each remittance.
• Costs chargeable to you: If the debt collector charges costs in addition to the contingency fee, the contract should describe what costs may be charged and provide a proper accounting to you. For cases that go to court, expect to pay certain litigation costs like filing fees, deposition fees, and subpoena and witness fees.
• How remittances will be paid: Will your service pay you by electronic transfer, or by ordinary checks delivered by mail or overnight courier?

Before you hire a collections professional, figure out what services you actually need and what each service costs. You can make adjustments as you proceed, but you can avoid unnecessary sticker shock by paying attention to these details before you sign on the dotted line.

Read more in our latest article.

Need Debt Collection Help in Michigan?

Our firm has you covered!

If you’re frustrated with a lack of action from your debtor, our lawyers can help you with debt collection in Michigan. If you have questions about any part of the collection process, or if you’re ready to place a claim, call us at (248) 645-2440 or submit a contact form here.

When in Doubt, Follow the FDCPA

What is the FDCPA, and how can it help you as a debt collector?

Even if you’re not a third-party debt collector, following all the requirements of the Fair Debt Collections Practices Act (FDCPA) can help you avoid violating state laws, some of which impose similar restrictions on all debt collectors.

Commercial debts are not subject to the FDCPA, so generally you’re not restricted by those laws while collecting against commercial debtors. You must still be careful though, because sometimes it’s not immediately clear which debts are commercial and which are for personal or household use. Also, the trend among states is to extend protection against debt collection to all debtors, regardless of the nature of the debt.

It’s wise to follow the FDCPA requirements even when collecting commercial debts. Although following the FDCPA can protect you if you mistakenly believe a personal debt is commercial or when state law is broader than federal law, you’re doing more than following the adage of “better safe than sorry.” For the most part, the provisions of the FDCPA are consistent with good collections practices. They help define and justify collections procedures that can keep your operations both professional and ethical.

Read more in this month’s article.

Get Help from Michigan Debt Collection Services

Have questions about collecting debt, or ready to file a claim? Whatever part of the process you’re at, reach out our Michigan debt collection services at (248) 645-2440 or submit a contact form here.