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.

The Importance of Customer Details

Why is it important to know your customer in detail?

When you extend credit, the type of legal entity you’re extending credit to is key to determining how much credit to grant. From a collection standpoint, there’s a huge difference between lending to an individual, sole proprietorship, corporation, or limited liability company. Many business entities, including corporations, provide a significant shield against collections, allowing their owners or shareholders to avoid any personal responsibility for their unpaid debts.

When you evaluate credit applicants, always require a formal credit application. The information your customer provides on its application makes it clear who the applicant is and the nature of the legal entity involved, which, along with other vital information from the credit application, allows you to properly evaluate the prospect. If the customer refuses to take the time to fill out your credit application from, your credit policy should require you or your designee to contact the customer by phone or in person to obtain that information. You can complete the application form yourself and then have the customer verify, sign, and return the form or acknowledge its accuracy in writing. Even an email acknowledgement is fine.

Learn More with Michigan Collection Services

Don’t be afraid to talk to a collections lawyer! The Muller Law Firm can answer questions about any part of the collections process. If you need help with debt collections located in Michigan, call (248) 645-2440 or submit a contact form here.

Know Before You Lend

What does your credit lending process look like?

Before extending credit, you should know what type of legal “entity” your customer has chosen. Identifying your customer is just as important as knowing how long the customer has been in business, how much credit they’re requesting, who they’re purchasing from (“trade references”), and who they’re banking with. Generally speaking, with the notable exception of sole proprietorships (where the business and owner are one and the same), a legal entity may:

1. Have separate assets owned in its name
2. Sue and be sued in its own entity name
3. Insulate its owners from personal liability (except for the general partners of a regular or limited partnership)

Find out the differences in the legal entities you’re selling to so you avoid any misunderstandings as to who owes you the payment. Then make sure you’re extending credit to an entity you actually want to have credit terms.

Learn More with Michigan Collection Services

Don’t be afraid to talk to a collections lawyer! The Muller Law Firm can answer questions about any part of the collections process. If you need help with debt collections located in Michigan, call (248) 645-2440 or submit a contact form here.

Need a Reputable Attorney to Represent You?

Established in 1961 by John F. Muller, Sr., we continue to insist on total quality as the guiding principle of our business. We constantly review and update our procedures as we seek new ways of working for our clients.

We’ve tracked down overdue accounts, winning many settlements for our clients along the way. We handle your case with the professional attention it deserves and we’re well prepared to use all our options to collect your overdue debts.

Debt Collection in Michigan: Get Started Today!

When you hire one of our attorneys to take your case on debt recovery in Michigan, we’ll ease your stress by developing a strategy that works best for your unique case. An in-depth analysis and investigation of the facts will help us determine your options. Call us at 248-645-2440 for a free initial consultation and strategy meeting!

What is the Debt Recovery Process?

• Alternative Dispute Resolution
• Case evaluation
• Arbitration
• Mediation
• Dispute resolution
• Counterclaim Defense
• Aggressive defense of counterclaim actions
• Affirmative defense strategies and discovery
• Collect on Debt 
• Garnishments 
• Repossessions

Take the First Step! Contact an Attorney for Debt Recovery in Michigan Today!

If you need the help of an attorney for debt recovery in Michigan your first step is easy! Fill out the information form on our “Contact Us” page, or give us a call at 248-645-2440, to ask questions and figure out your next steps. We offer a free consultation and strategy meeting, no fees unless you win! Don’t let the money owed to you go away – get started today! We look forward to hearing from you.