With the expected growth in the Aviation and Aerospace industry due to increased defense spending comes with it more bad debt issues. With millions of Americans in debt, debt collection has become a booming industry. In 2004 alone, the debt collection industry made over $16.5 billion in profit. With so much money on the line, debt collection agencies…
With the expected growth in the Aviation and Aerospace industry due to increased defense spending comes with it more bad debt issues. With millions of Americans in debt, debt collection has become a booming industry. In 2004 alone, the debt collection industry made over $16.5 billion in profit. With so much money on the line, debt collection agencies representing the aerospace industry are under a lot of pressure. In some cases, this pressure has resulted in abusive and often aggressive behavior leaving many debtors feeling intimidated.
In order to protect debtors from this type of aggressive behavior, the United States Congress passed several debt collection laws to help keep debt collectors and debt collection agencies in check. The debt collection laws make sure that the growth of the debt collection agency is coupled with the values of good service and integrity.
The primary debt collection law is the Fair Debt Collection Practices Act (FDCPA) of 1977. FDCPA specifies the best practices in which debt collectors must conduct themselves, placing measures prohibiting debt collectors from engaging in certain activities. Some of these measures include the following:
- Violations of Privacy – Debt collectors can only talk to other people for the purpose of finding your current location. They are not allowed to disclose any information regarding an outstanding or the terms of the debt collection process.
- Unfair Calls or Visits – According to debt collection laws, especially the FDCPA, debt collectors are not allowed to appear at your aerospace industry company’s doorstep whenever they want to. They are only allowed to call or visit your debtor between the hours of 8:00 am and 9:00 pm. Debt collectors are also prohibited from appearing at your debtor’s place of business if they have been previously informed them that they are against such visits.
- False Representation – The debt collector cannot intimidate a business owner or private investor with false authority; they cannot say that they are a lawyer or law firm representing your aerospace industry business if they are not. The debt collector cannot inform your debtor that they have the power to personally repossess items or inventory. They also cannot present documents that give the appearance their actions are directed by the US or State Governments.
However, the FDCPA is not the only law that is related to debt collection in the aerospace industry. Individual states usually have their own debt collection laws that are imposed to provide protection for their residents. For example: in California, debt collection laws require the debtor to keep written records of communications and transactions with the debt collector.
On the other hand, in Pennsylvania the Fair Credit Extension Uniformity Act was passed helping protect debtors from the deceptive behaviors of debt collectors. This act supports the FDCPA and it states that debt collectors CANNOT falsely imply that their inability to pay their debt to your aerospace industry related business is a crime. The debt collection laws of Pennsylvania also detail that debt collectors are not allowed to issue false threats of legal action.
All of these debt collection laws at both the Federal and State levels, have one thing in common: they help protect debtors from being abused by eager aerospace industry debt collectors.
Do you have a question about the Fair Debt Collection Practices Act or debt collection laws in your state in regards to the aerospace industry? Feel free to contact the Stevens-Lloyd Group, Inc today.
So you’ve done your due diligence* and selected the right commercial collection agency for your business͛ needs, what now? Although you may feel that your work is done having handed your debt collection efforts off to the professionals, it is still important for you to take an active role in the relationship you have when working with a Commercial Collections Agency. Although you hired the agency for their …
So you’ve done your due diligence and selected the right commercial collection agency for your business’ needs, what now? Although you may feel that your work is done having handed your debt collection efforts off to the professionals, it is still important for you to take an active role in the relationship you have when working with a Commercial Collections Agency. Although you hired the agency for their expertise, experience, and sound judgment, the agency can better do its job with you taking an active role in your working relationship.
*Be sure to read our article on 5 Things to Consider When Hiring a Business Collection Agency
Think of your agency as a partner, somebody to work with and not just an outsourced contractor. If possible, meet with your agency’s representative periodically to review the status of your accounts. If this option is unavailable due to logistics, have regular communication with them via the phone or email. Be sure to insist on prompt responses to your calls or emails, it’s not too much for you to ask for phone calls and/or emails should be responded to within one business day. However, in doing so, make sure you reciprocate. Respect goes both ways.
Working with a Commercial Collections Agency
In order to ensure the highest possible rate of returns on your outstanding receivables, when working with a commercial collections agency, be sure to provide them with as much information about the debt and debtor as possible. The more information the commercial collections agency has the more potential money you will be able to collect. That information should include the following:
- Any names associated with the debtor: Debtor’s name, spouse, friends, relatives and/or neighbors, including any nicknames, maiden names, aliases, etc.
- Addresses: business and personal.
- Contact information: telephone numbers, business and personal, including cell phone numbers, and any and all email addresses associated with the account.
- Purchase and/or transaction details, including dates, amounts, type of, etc.
- Any paperwork related to the transaction, including contracts and credit applications.
- Any and all correspondence you have had with the debtor, including any feedback or acknowledgments to your debt collection efforts you have received.
By providing the above information and maintaining communication when working with a commercial collections agency you can help reduce frustrations and could very well speed up the commercial collections process.
If you are a business owner trying to collect on past-due accounts, a reputable Commercial Debt Collection Firm can often help.
We invite you to give The Stevens-Lloyd Group, Inc. a try…
Place an account with us right now and see what we can do for you!
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