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.

Play by the Rules when Collecting Debt

What’s the best way to cover your bases when talking to a debtor?

When you work with consumer debtors, you should assume that the debtors are fully aware of their rights and are secretly looking for a way to sue you for violating those rights. Work from the expectation that your debtor is sophisticated:

• Assume that the debtor is keeping notes every bit as good as yours, maybe better. Assume that their records will include dates and times of any phone calls, whether you’re calling at inappropriate times or in a highly repetitive manner (for example, ten calls in a single day), and whether you’ve violated restrictions on communications with third parties, such as their employer.
• If the debtor requests verification of a debt, provide it. Supply the contracts, invoices, and statements underlying the debt. If they request them again, provide them again (and again, and again).
• Make sure that you provide accurate balances for debts. Don’t charge any unauthorized fees or interest rates beyond those permitted by your contract or state law.

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.

Outlining Entity Liability

Why is it important to understand what kind of entity you’re lending to?

In the last blog, we discussed five common legal entities you’ll come across when lending credit. Now, we’re going to outline the level of liability for each entity:

• Individual and personal guarantors: A person who applies for credit, or who signs a personal guaranty of payment for another entity, should be evaluated for credit purposes based upon their personal assets and income. In the event of default on the debt, they are personally liable.
• Proprietorships: The owner of a proprietorship is personally liable for any default on credit terms extended. A proprietor is the owner, and the business isn’t a separate legal entity.
• Partnerships: The owners of a general partnership are personally liable for money owed. Although the partnership entity is a legal entity that may stand alone financially, the general partners (owners) are personally liable to you.
• Corporations: When you sell to a corporation, only the corporation is liable for your debt. The shareholders only become personally liable if they sign a personal guaranty. Exercise extreme caution when extending credit to a corporation.
• Other Legal Entities: State laws allow for a wide variety of legal entities and, as you process credit applications, over time you’ll probably encounter most of them. You may encounter joint ventures, a cooperative venture between two or more legal entities, or the professional limited liability company (PLLC). To protect yourself, evaluate these entities in the same way you would evaluate a corporation.

Need Help from Michigan Collection Services?

No matter what entity you’re dealing with, if they’re not paying, we can help you collect. With our firm, you get a comprehensive package of Michigan-based collection services, including international debt and judgement collection. If you have questions or are ready to place a claim, call (248) 645-2440 or submit a contact form here.

Defining Legal Entities

What counts as a legal entity when lending money?

When it comes to credit lending, there are five common legal entities:

• Sole Proprietorship: A business owned and operated by an individual, without limited liability or any of the other features of a corporation.
• General Partnership: A business entity where the owners share personal liability for the debts and obligations of the business.
• Limited Partnership: A form of partnership with general partners, who manage the partnership and are personally liable for its debts, and silent partners, whose liability is limited to the value of their interest in the partnership.
• Corporation: An artificial entity or “legal person” that under normal circumstances shields its owners from liability for its debts. 
• Limited Liability Company (LLC): An entity similar to a corporation that ordinarily shields its owners (usually called members) from liability for the debts of their business.

In addition to the liabilities described for proprietors and general partners, personal liability may also arise in the context of other legal entities. For example, an individual may become liable by:

• Signing a personal guaranty or suretyship agreement.
• Managing a business as a member of a limited liability company on the very rare occasion that the documents creating the LLC require personal liability.
• Continuing to run a corporation that has been automatically dissolved by the state.
• Making purchases on behalf of a company that has not yet incorporated.
• Commingling personal money with business money or thinly capitalizing the business from the start.

Need Help from Michigan Collection Services?

No matter what entity you’re dealing with, if they’re not paying, we can help you collect. With our firm, you get a comprehensive package of Michigan-based collection services, including international debt and judgement collection. If you have questions or are ready to place a claim, call (248) 645-2440 or submit a contact form here.

Why Preparedness Means Everything in Court

Are you taking your debtor to court?

Are you fully prepared?

Your preparation or lack thereof can influence whether you win the case. Here are two mistakes to avoid!

Not knowing who may represent your company – If your business is incorporated or if you intend to send an employee to represent your company in court, make sure the court’s rules permit you or the employee to appear without a lawyer. Determine in advance who may appear in court by asking the civil court clerk or by reviewing the small claims court pamphlet.

Failing to bring a key witness – If a witness has important testimony to share, bring the witness to court. Even if your court permits you to submit affidavits, a written statement is usually given little weight in deciding a case because there’s no opportunity for cross-examination or assessment of witness credibility. If you don’t produce an important witness in court, you send a signal to the judge that you don’t really care if you win or lose.

Learn more mistakes to avoid on our website!

Collection Services in Michigan

Since 1961, our top-rated lawyers have been dedicated to professionally and aggressively pursuing the money you’re owed in a straightforward, ethical manner. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country.

To take advantage of our collection services in Michigan, contact us today!

Avoiding Common Mistakes During Litigation

Can’t get through to your debtor?

Have you decided to take legal action?

The most important thing you can do before litigation is prepare your case and gather all the information necessary. Common mistakes in small claims court include:

Expecting the judge to guide you – Don’t expect the judge to help you remember important facts, present your testimony and evidence, or tell you if you’ve forgotten to address a key issue. Some small claims judges are helpful, but some will let you sink or swim on your own.

Appearing without full documentation – If you find yourself telling the judge, “I left my file at home,” it probably means you’re going to lose the case.

Lacking conviction – The judge should sense that you believe in your case. Present your case in a manner that tells the judge, “I’m right, and I deserve the money the defendant owes me.”

Learn more litigation mistakes on our website!

Collection Services in Michigan

Since 1961, our top-rated lawyers have been dedicated to professionally and aggressively pursuing the money you’re owed in a straightforward, ethical manner. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country.

To take advantage of our collection services in Michigan, contact us today!

When to Consider Legal Action

Are your debtors refusing to pay?

Before you threaten litigation, make sure you’ve laid a solid foundation. Although you can sue over any debt that’s owed to you, good collection practices improve your chances of winning and collecting the entire amount of your claim.

Make sure you have done the following first:

Formally Demand Payment – When the account becomes delinquent, issue a demand letter within the first 30 days. Follow up with the debtor, both in writing and verbally, reminding them to pay.

Work to Resolve Disputes – While following up on unpaid debt, identify any disputes from the debtor. Although not all disputes can be resolved, when appropriate, those disputes should be resolved or settled. 

Learn more steps to take before litigation.

Debt Collection Services in Michigan

Are you ready to pursue legal action?

Muller Law Firm can help with your case’s litigation. It starts with serving the debtor, receiving a judgement, and enforcing it. Judgment enforcement can help get you paid by garnishing your debtor’s wages, placing liens on their assets, levies on their bank accounts, and more.

To take advantage of our collection services in Michigan, contact us today!

Default Contract Provisions to Include

Do your customers come up with excuses to not pay?

Are your contracts weak?

You should include contract clauses like these in the event of disputes or litigation:

Acceleration – A provision that causes any balances payable on an installment plan to become immediately due in the event of a default.

Automatic Renewal – A clause that says the contract will renew for an additional term if the buyer doesn’t cancel by a specified deadline. For example, the contract may renew in one-year terms if written notice to terminate the contract is not received at least 60 days before the expiration of the current term.

Choice of Law and Venue – Include the location where any litigation will occur, and what state’s laws are to be applied to interstate transactions.

Learn more provisions to include!

Contact Muller Law Firm for Collection Services in Michigan

Ready to get the money you deserve?

At Muller, Muller, Richmond, & Harms, P.C., our attorneys specialize in debt collection services in Michigan. We can help you build a strategy customized to fit your business needs and ensure you receive the best possible outcome in pursuing your case.

Fill out the information on our “Contact Us” page or give us a call at 248-645-2440 for prompt collection services in Michigan.

How to Reduce Risk

Do you want to guarantee payment on a customer’s account, even if they don’t pay?

Consider factoring!

Factoring is when you sell the account receivable at a discount to another company – usually called a factor – for cash.

Instead of insuring your accounts receivable, you may decide to sell them. Your factor determines which accounts receivable it wants to purchase and at what discount. For example, if a customer owes you $10,000, your factor may offer you $9,000 for the account. You get your money when you sell the account receivable regardless of when or if your customer pays. You gain quick payment with no credit risk, but you lose the amount of the discount.

Learn other ways to reduce risk on our website!

Debt Collection Services in Michigan Since 1961!

If you want to use debt collection services 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. Don’t let the money owed to you go away- get started today! We look forward to hearing from you.

Should You Purchase Credit Insurance?

Don’t want to wait and see if your customers pay their bills?

Consider purchasing credit insurance!

Credit insurance, also referred to as trade credit insurance, is offered by insurance companies and some government export credit agencies. This insurance usually covers a fixed percentage of the account receivable. In other words, if the customer fails to pay a bill, your insurance company reimburses you for a portion of that unpaid bill. You must absorb the cost of the insurance as a business expense, and you still take a bit of a hit in the event of a default if you insure for less than the full value of your receivables. 

Learn about other options to reduce risk on our website!

Debt Collection Services in Michigan Since 1961!

If you want to use debt collection services 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. Don’t let the money owed to you go away- get started today! We look forward to hearing from you.

How to Write Effective Collection Letters

Has one of your customers become a debtor?

Want to learn how to write an effective collection letter?

The more you can customize your collection process, the more effective it becomes. Just as a journalist covers who, what, when, where, and why, you want to cover all the bases: be specific with dates, invoices, balances due, interest amounts, and due dates. Make sure your debtor knows how much they owe and when they need to pay it. Debtors are quick to grasp at the flimsiest straws. If you give them the opportunity, eventually you’ll hear a debtor claim that they didn’t pay you because they didn’t know how much to send or when or where to send it.

You can send your letter by any means that you believe will be effective, including regular mail, fax, email, or express mail. Overnight mail can sometimes help create a sense of urgency.

See more collection letter tips.

Debt Collection Services in Michigan Since 1961!

Since 1961, our top-rated lawyers have been dedicated to professionally and aggressively pursuing the money you’re owed in a straightforward, ethical manner. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country.

If you want to use debt collection services 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. Don’t let the money owed to you go away- get started today! We look forward to hearing from you.

Get The Money You're Owed Today with Help From Muller Law Firm

Having trouble collecting?

Need advice from a debt collection attorney?

After you’ve taken the actions defined by your collection policy and your debtor still hasn’t paid, you shift into collection mode. If your debtor still doesn’t pay, you may need to seek legal help from our debt collection attorneys in Michigan.

Muller, Muller, Richmond, & Harms, P.C. can help you get the money you’re owed. You expect results and we expect results! We’ll handle your case with the professional attention it deserves and we’re prepared to use all our options to collect your overdue debts. 

Learn more here!

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

If you need the help of an attorney for debt collection 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.

Failing to Act Timely to Place the Account for Collection

 

If you have good collection policies, they should include time frames in which to take certain actions, including these:

1. Following up with demand letters requiring payment when an account balance becomes delinquent.
2. Following up with collection phone calls when demand letters don’t produce payment.
3. Immediately following up with the debtor when the debtor doesn’t keep promises to make a payment.

Learn more here!

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

If you need the help of an attorney for debt collection 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.

How to Deal with the Elusive Customer

After your customer’s paying habits deteriorate, he or she may become elusive and avoid communication. Rather than picking up the phone and discussing the account, he or she may let your calls go straight to voicemail and won’t return them. On occasion, you may find that your customer’s voice mailbox is full and can accept no further calls. 

Elusion is a red flag. Put your customer at the top of your list for monitoring payments and exercise extreme caution when considering any further credit.

Learn more about how to deal with elusive customers here.

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

If you need the help of an attorney for debt collection 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.

Get Creative When it Comes to Communicating with Your Debtor

The phone may not be the only way to communicate with your debtor. Possible solutions might include:

1. Show up on the debtor’s doorstep – Visiting your debtor may result in meaningful face-to-face communication, but there are potential drawbacks. Your debtor could have moved, or upon arrival rather than getting paid you may discover your debtor prefers to engage in a verbal confrontation.
2. Email – Look for an email address on the customer’s credit application, letterhead, purchase order, or website.
3. Fax- Sometimes even when the voicemail is down, the fax machine still works. A fax number may also appear on a letterhead, website or credit application.
4. Text- Even if the voicemail is full, your contact may still accept a text message.

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

If you need the help of an attorney for debt collection 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.

How Strong is Your Case?

You’ll have to assess your case and determine whether it’s strong enough to win in either alternative dispute resolution or in court. Your evaluation of evidence should include: 

• Reviewing any letters or other written communications exchanged with the debtor, and your notes on any comments made orally.
• Analyzing the debtor’s likely claims and defenses.
• Evaluating the data objectively.

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

If you need the help of an attorney for debt collection 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.

Situations that May Require a Write Off

Does your situation require a write off?

Let’s find out!

Our experienced debt collection attorneys in Michigan recommend writing off a debt if your debtor falls into any one of these categories:

1. Out of business customers
2. Debtors who can’t be found
3. Customers in bankruptcy or receivership
4. Claims on a deceased debtor’s estate

However, every case is different! Please talk to an experienced debt collection attorney in Michigan today to ensure nothing else can be done.

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

If you need the help of an attorney for debt collection 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.

Serving the Suit on a Hiding Defendant

What happens if you can’t get your defendant served? Does your defendant fail to sign for certified letters? Does mail comes back marked “return to sender” (or “address unknown,” or “no such number”)?

If your process server can’t find the defendant, do you have to get the documents served in order to move forward?

There is another way! Find out here!

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

If you need the help of an attorney for debt collection 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.

Should You Hire an Attorney? Consider Your Case Complexity & Cost.

 

When you choose whether to handle a case yourself, two factors usually dominate your decision-making process:

1. Cost: How much will it cost to litigate your case, with or without a lawyer?
2. Complexity: Is the case too difficult or too time consuming to handle yourself?

Ideally, before you file your case, you should have a pretty good handle on the cost of getting a judgment and whether the case is simple enough for you to handle without a lawyer. At a superficial level, the question of cost seems easy, but cost increases with the complexity of a case. 

We Specialize in Debt Collection in Michigan!

At Muller, Muller, Richmond, & Harms, P.C., our attorneys specialize in debt collection in Michigan. We can help you build a strategy customized to fit your business needs. We want to ensure you receive the best possible outcome in pursuing your case. 

Since 1961, our top-rated lawyers have been dedicated to professionally and aggressively pursuing the money you’re owed in a straightforward, ethical manner. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country.

Call us at 248-645-2440 for a free initial consultation and strategy meeting!

Can you Handle Your Case on Your Own? Consider Your Case Complexity & Cost.

“Can I handle my case on my own?”

If you’re not up to the task, if it’s too big a feat our attorneys at Muller, Muller, Richmond & Harms, P.C. can help you create a strategy to fit your needs.

Factors that make a lawsuit more expensive include:

• The amount you’re seeking

• The type of case you’re filing

• The complexity of your case

We Specialize in Debt Collection in Michigan!

At Muller, Muller, Richmond, & Harms, P.C., our attorneys specialize in debt collection in Michigan. We can help you build a strategy customized to fit your business needs. We want to ensure you receive the best possible outcome in pursuing your case. 

Since 1961, our top-rated lawyers have been dedicated to professionally and aggressively pursuing the money you’re owed in a straightforward, ethical manner. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you are located out of state or out of the country.

Call us at 248-645-2440 for a free initial consultation and strategy meeting!