In-House Debt Collections, TM Building

With billions and billions of dollars in debt worldwide, both creditors and collection agencies are feeling the pressure. Debt collectors looking to recover outstanding receivables must employ techniques that will encourage debtors to pay.

  • Overview With billions and billions of dollars in debt worldwide, both creditors and collection agencies are feeling the pressure. Debt collectors looking to recover outstanding receivables must employ techniques that will encourage debtors to pay. Successful debt collection and outstanding receivables collection techniques will help the collector get the account settled immediately, while still being mindful of the laws that protect debtors.
  • Background TM Building Damage Restoration, a licensed general contractor located in Tucson, Arizona for over 30 years. The company has a part owner with a dynamic and energetic person who serves in two capacities; Marketing Director and In-House Collections Manager. She faces many challenges and frustrations as an in-house-collector. She frequently encounters many excuses from client’s delinquent in paying their invoices. Excuses include, “I never received a bill”, “My invoice was incorrect”, or “TM Building Damage Restoration [allegedly] didn’t do all of the work”. She feels that approximately one-third of her cases were downright fraudulent.
  • Solution In 2012, TM Building enlisted the assistance of The Stevens-Lloyd Group, Inc. to help tackle their commercial debt recovery problem. The Stevens-Lloyd Group helped create and implement a program which proved successful in recovering nearly all of TM Building Damage Restoration’s outstanding receivables! Some of the tactics used in helping collect the commercial debt included:
    • utilizing an extensive phone log to keep detailed call records
    • conduct research on her customers utilizing TM Building’s database
    • calling weekly on all accounts 30 days past completion
    • focused mainly on receivables between the $7,000 to $9,000 range
    • asks for payment in full
  • We were happy to assist our client in crafting an in-house debt collection process. That is just one of the services we offer at Stevens-Lloyd Group. For more information on other techniques please read https://www.stevenslloydgroup.com/debt-recovery/collection-agency-credit-managemet-recover-outstanding-receivables/ The key to our success was perseverance and know-how from our collectors and attorneys in Florida and California. As a result, the Stevens-Lloyd Group was able to effect payment in full for GM Air on an account which would’ve been written off by our client or a less effective commercial debt recovery firm.
  • Recommendation
    Team up with a world-class commercial debt collection agency to help recover unpaid debts and institute an effective debt recovery system. In our experience, successfully collecting on past due accounts has a lot to do with the expertise of the collector. The more seasoned the collectors, the better the results. For companies without internal collection expertise we recommend turning accounts over sooner, 60 – 90 days. For larger corporate companies with experienced collection teams, we recommend turning over past due accounts at 120 days. If you have accounts that are over 180 days past due, we recommend IMMEDIATELY turning them over to a collection professional. Remember, the likelihood of collecting drops to 50% Between 6 – 9 months past due.

 

Credit Management Services: 5 Additional Tips for Guaranteeing Recovery of Your Accounts Receivables

In our first installment of our Credit Management Services series, we discussed the importance of deploying successful debt collection techniques in order to help the creditor immediately settle their outstanding accounts receivables. In that article, we introduced you to Joy Paul, an in-house Collection Manger for TM Building Damage Restoration, the issues…

In our first installment of our Credit Management Services series, we discussed the importance of deploying successful debt collection techniques in order to help the creditor immediately settle their outstanding accounts receivables. In that article, we introduced you to Joy Paul, an in-house Collection Manager for TM Building Damage Restoration, the issues she faced when attempting to collect, and 7 of her Tips for Success to Guarantee Recovery 100% of Your Outstanding Receivables.

If you have not had a chance to read that previous article you can do so by CLICK HERE.

In Today’s post we are continuing on with Joy’s Tips for collection of Your Accounts Receivables.
Tip #8 – Make Copies Of All Checks Received

Joy posts all checks she receives utilizing QuickBooks. This goes along with what we’ve discussed earlier
– documenting everything!

Tip #9 – Attend A Collection Law Seminar.

Joy attended a collection law seminar. The course taught her, among other things, the need for a punch list (discrepancies) such as having to amend the roof, warranties, etc.

The course also studied and examined the Federal Fair Debt Practice Act (FFDPA). The FFDPA applies to all persons attempting to collect a debt. For example, there are things you can’t say and times you can’t call, for instance before 8 a.m. or after 9 p.m. You must disclose the nature of your call. The FFDCPA regulates all activities. For a complete synopsis of the FFDCPA, see
https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text

It is important to ascertain whether your claim is commercial or individual. Mostly, FDCPA laws don’t apply when collecting against businesses that owe money. For example, it is okay to email and send faxes if the claim is for a commercial debt.

Even though the FDCPA is designed for the consumer, you do want to comply with the FDCPA within reason. Common sense facets to consider are not to make false threats of lawsuits, don’t harass the debtor, and keep conversation clean and professional. The latter is much more effective than yelling and screaming, which are completely ineffective!

Use finesse and tact. For instance, state that “I know that your company wants to do the right thing” or “We are not set up as a bank or lending institution.”

Tip #10 – Demand Letters


(Click on the image for a larger view)

Accounts Receivables | Debt Collection Demand LetterFor problem accounts, Joy deploys six invoices or demand letters asking for immediate payment. Your goals are to get the debtor’s attention, avoid being ignored, avoid any misunderstandings, and to get paid-in-full promptly. Make it clear when the bill is to be paid, how much, any discounts or penalties applicable, and in some cases, the consequences for not paying. Below is format Joy utilizes in her “Final Demand Letter”.

Joy utilizes a 10-day Demand Letter. This would be the 6th letter or invoice. Allow debtor 10 business days to pay. An account over 90 days is considered past-due.

See example to the right:

Tip #11 – Work Authorizations/Written Agreements


(Click on the image for a larger view)

Accounts Receivables | Work Authorization FormThrough the use of a work authorization form or proposal, Joy is able to recover collection fees, attorney’s fees and interest should legal action be deemed necessary. The work authorization form serves as a contract and detailed verbiage is stated at the bottom of the form.

In your business, if there are predictable reasons why debtors think they don’t need to pay, acknowledge those reasons. If you don͛t persist and you won’t be paid. For example, Joy in her work authorization form states that if the insurance company doesn’t pay it’s the responsibility of the customer to pay.

See example to the right:

As you can see, all of the terms and conditions are spelled out on the contract, including the fact that if the insurance doesn’t pay, the company will be responsible to pay TM Building. The proposal is in case of an out of pocket cost or upgrade.

Tip #12 – Personal Guarantees

It is a good idea to obtain personal guarantees and credit applications. If a company is sold or goes out of business, the personal guarantor can be contacted at home and a demand can be made against him personally.

On corporate debts, if the guarantor signs the PG as John Smith, President; this voids the effect of the PG. In this case, he would be signing it only as an agent of the corporation. The same principle applies for signers of NSF checks.

If a company is sold, the new owners will be responsible if the product was purchased after the sale date. Prior to the sale date, the old owners are liable.

If a company changes names, procure a new credit application and personal guarantee. If this hasn’t been done, it is possible that a claim can be made against the successor company. The sale can be considered as a constructive merger if a pattern of continuity can be established. Examples would be same management, same employees and the same shareholders.

Disputes

Joy discovered that in many cases, the debtor manufactures a dispute because they don’t want to pay. Through experience, she is skillfully able to get the debtor to admit how much they owe net of credit, the amount not in dispute. Never let the debtor off the hook without that information.

An example would be a $3,500 claim, debtor disputes $500 and $3,000 is admitted. An appropriate question: “When can I count on your check of $3,000, Mr. Jones?” Force-feed the debtor. Close the deal and confirm in writing

Aerospace Industry Debt Collection Laws

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.

Working With A Commercial Collections Agency

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!

It’s easy. Here’s all you need to do:

Just fill out this convenient online placement sheet. Once it’s sent, you’ll be on the road to discovering The Stevens-Lloyd Group, Inc. difference!

When Debt Collectors Cross the Line: Illegal Collection Tactics

If you have ever been behind on your bills and been on the receiving end of collection phone calls, you have probably heard collection agents make some very threatening statements. While most debt collection professionals refrain from illegal collection tactics and stay within the boundaries defined by the Federal Fair Debt Collection Practices Act (FDCPA), many others…

If you have ever been behind on your bills and been on the receiving end of collection phone calls, you have probably heard collection agents make some very threatening statements. While most debt collection professionals refrain from illegal collection tactics and stay within the boundaries defined by the Federal Fair Debt Collection Practices Act (FDCPA), many others cross the line on a regular basis.

In 2015, the Federal Trade Commission (www.ftc.gov) received more than 897,000 complaints about debt collectors, representing 29% of the total number of complaints received all year. In fact, The FTC has sued over 30 debt collection companies and individuals for violating the law and has permanently banned them from the industry.

Consumers complain about the collection industry more than all other industries combined.Collection professionals would probably respond that the enormous size of the industry and the sheer volume of collection activity accounts for the large number of complaints. However, only a small percentage of violations are actually reported by consumers, so the data collected by the FTC represents only a tiny fraction of the true scope of the problem. Even so, a pattern of abusive and illegal collection tactics has been well documented by the FTC, and it is getting worse instead of better.

The following are some common illegal collection tactics and harassment made by debt collectors:

  • “We’re going to take your house unless you pay this bill immediately.”This is a bogus threat. Unless the debt being collected is secured by the house in question (i.e., a mortgage or home equity loan), the creditor does not have the power to take your house away from you.
  • “If you don’t pay this bill today, we’re going to have a warrant issued for your arrest.”Nonsense. Failure to pay a debt is a civil matter, not a criminal matter. Threatening a debtor with jail time or accusing them of committing a crime is totally against the rules.
  • “We don’t care that you sent a cease communication notice. We’re going to call you anyway.”The FDCPA gives you the right to terminate contact efforts by a debt collector. Failure to respect a cease communication notice is a clear violation of Federal law.
  • “We’re going to garnish your wages to recover this debt.”A collector can only threaten action it has the legal authority to take, and the vast majority of collection agencies have zero legal authority. Your wages can only be garnished by a creditor after they have won a judgment against you in a lawsuit.
  • “We know where you live, so you better pay up.”Yes, threats of violence still happen in this industry. Nearly 3000 complaints against collectors received by the FTC last year cited the threat of violence as the cause of the complaint. This is absolutely illegal.

Other Illegal Collection Actions

Aside from the above bogus threats, collectors also use other illegal collection tactics. For example, discussing your debt with a third party is a clear violation of the FDCPA. Yet collectors routinely call neighbors, relatives, and employers to obtain information on debtors. So long as the collector does not discuss the actual matter of the debt, they still have their toes on the right side of the line. But as soon as they mention or even hint that they are calling about a debt, they have crossed the line.

Since many debtors have taken to screening their phone calls at home to cut down on the relentless barrage, debt collectors frequently call them at work (when they can obtain the number). In theory, a consumer can get the collector to stop calling their workplace simply by stating that they are not allowed to receive personal phone calls at work. That puts the collector on notice that such activity constitutes interference with the consumer’s employment, which is not permitted. In practice, however, collectors routinely ignore this rule and continue to call at work.

There are many other illegal collection tactics and techniques of harassment and intimidation that cross the line from permissible to impermissible collection activity. Use of obscene or profane language, shouting, constant and unrelenting telephone calls, failure to respond to written disputes, and publication of debtor information all constitute illegal activity as defined by the FDCPA.

What can you do to protect yourself?

If you are on the receiving end of illegal collection tactics, it’s important to know and understand your rights as a consumer. A description of your rights under The Fair Debt Collection Practices Act may be obtained directly from the FTC (http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm).

If you believe that a collector has violated your rights in their attempt to collect from you, then you should not hesitate to file formal complaints with the Attorney General for your state (www.naag.org) as well as the Federal Trade Commission. If enough complaints are received about a particular collector, then these authorities are empowered to bring an enforcement action against them, which may result in expensive fines that will make the agency or collector think twice about using such tactics in the future. You also have the right to bring a lawsuit yourself against a collector that harasses or abuses you, or otherwise violates your rights under the law.

One final point: The FDCPA technically only applies to third-party debt collectors, which includes commercial collection agencies and collection attorneys. It does not apply to the original creditor when collecting their own debt. For example, if you borrow money from a bank, the bank is not regulated by the FDCPA.

However, numerous other public laws protect consumers from deceptive or abusive collection practices even by original creditors, and many states also have laws that parallel the FDCPA but go further and include original creditors in the definition of a debt collector.

So if an original creditor is harassing you or has crossed the line, you should still file a complaint with your state’s Attorney General as well as the FTC. If a clear pattern of abuse emerges, the original creditor can be charged with unfair or deceptive acts or practices, either under state law or under the FTC Act that governs the conduct of commerce in our country.

To sum up, if you are on the receiving end of illegal collection tactics, action and/or harassment, don’t just take it. Educate yourself on your rights as a consumer, vigorously dispute debts that you don’t believe you owe and take action yourself in the form of complaints to your Attorney General and the Federal Trade Commission.

By standing up for your rights, you can put a stop to bogus threats and illegal collection tactics.

Getting the Best Service from Your Commercial Debt Collection Firm

As you are no doubt are aware, there are many commercial debt collection firms available for you to choose from. While most of those companies are more than effective at recovering debt, it should be noted that each commercial debt collection firm usually focuses on a specific type of industry or size of the company…

As you are no doubt are aware, there are many commercial debt collection firms available for you to choose from. While most of those companies are more than effective at recovering debt, it should be noted that each commercial debt collection firm usually focuses on a specific type of industry or size of the company.

For instance, if you are owed money from a small business, you would want to talk to a commercial debt collection firm that specializes in debt collection recovery from small business owners. On the other hand, if you are dealing with a Fortune 500 corporation owing your company a substantial amount of debt, then a commercial debt collection firm that has experience and legal know-how to work with large, powerful corporations is ultimately necessary.

Professionalism is key when choosing the right Commercial Debt Collection Firm for your needs.

The commercial collections industry is replete with stories of commercial debt recovery gone horribly wrong due to unscrupulous collection efforts and shifty agents working on behalf of the company. By attempting to collect your outstanding debt using unprofessional techniques, you will more than likely not only fail at recovering the debt but could very well damage your business͛ reputation along the way.

Make sure you choose a commercial debt collection firm that is highly professional, knows and abides by the laws regarding debt recovery – especially in international debt recovery situations –and handles themselves correctly when attempting to recover a debt, particularly in sensitive situations.

The right commercial debt collection company knows how to recover your outstanding debt in a professional manner, causing minimal ripples along the way, while keeping your reputation intact.

Commercial Collections – A Business’ Best Option

Unlike consumer debts, commercial debt balances tend to be considerably higher, often times leaving businesses in a precarious position not having access to much-needed capital. When internal efforts to collect on a commercial debt prove unsuccessful, one of the most important steps a business owner can take is to contact a commercial collections agency…

Unlike consumer debts, commercial debt balances tend to be considerably higher, often times leaving businesses in a precarious position not having access to much-needed capital. When internal efforts to collect on a commercial debt prove unsuccessful, one of the most important steps a business owner can take is to contact a commercial collections agency.

Helping businesses recover past receivables that are long overdue is what a commercial collections agency excels at. Most businesses are unaware of what procedures to take when dealing with outstanding unpaid accounts. A commercial collections agency specializes in those procedures having policies, practices, and systems in place for commercial collections and large debt claims

Considerably more proficient in the debt collection process, a Commercial Agencies employ highly trained, adaptable, and skilled debt collectors to handle the commercial collections for their clients. Agencies are required to do due diligence before contacting the debtor including background checks, corporate structures, skip tracing through non-public database searches, payment histories, and other relevant information and inquiries.

All Local, State, and Federal Regulations must be followed by a Commercial Collections Agency. To do so, many agencies work with local attorneys to ensure their adherence to all regulations and requirements. Continual education is a must for a commercial collections agency to stay informed of any and all new laws and/or changes within the industry; yet another reason businesses should turn to commercial collections services for help in recovering outstanding receivables.

However, though it goes without saying, choosing a reputable and experienced commercial collections agency is key to the success of a business owner when it comes to recovering any unpaid accounts and outstanding debts.

3 Things to look for in a commercial collections agency:

  • Recovery proficiency
  • Professionalism and service
  • Confidence and Trust

Without using the above criteria when choosing a commercial collections agency to recover your outstanding receivables, business owners could find themselves no better off than before

Successful Debt Collection Tips: Effective Phone Conversations

Debt collection efforts can be stressful. One of the biggest mistakes individuals make when collecting on outstanding debts is not communicating properly; none more so than while attempting to collect on a debt via the phone. Deploying the best practices in accordance with national, state and local laws…

Debt collection efforts can be stressful. One of the biggest mistakes individuals make when collecting on outstanding debts is not communicating properly; none more so than while attempting to collect on a debt via the phone. Deploying the best practices in accordance with national, state and local laws is essential to avoiding debt collection missteps and having successful debt collection efforts.

Successful Debt Collection Tips:

Effective Phone Conversations

Though generally seen as the most efficient and effective method for successful debt collection, there needs to be a level of competence and skill to your methods. In other words, Professionalism is key.

Most people are familiar with the horror stories of debt collection efforts by less-than-scrupulous collection efforts. One thing that is common with individuals engaging in these tactics is a lack of professionalism. Here are a few tips you can use ion yourtelephone decorum arsenal to help you in your successful debt collection efforts:

  • Be polite–“Please”and “Thank You” go a long way. Be cordial while still conveying the importance of the matter and the need for a timely resolution.
  • Remember to smile–Yes, the debt collections process is less than desirable and a bit stressful from your end, even more so on the debtor. Your smile will come across and will more often than not put the other party at ease.
  • Avoid anything in your mouth during your call: food, candy, gun, etc.
  • Call during the appropriate hours–Not everyone works a 9 to 5 job, determine the best hours to reach the debtor by phone. You can do so
  • Avoid laying blame–Having debt can be stressful enough without someone making accusations or laying blame. As noted above, be polite. Be cordial. Discuss with the debtor the reason for failure to pay, they may not be what you think.
    For instance, perhaps the other party has a complaint of product or service. By digging deeper you can discover what the complaint is and work to resolve the situation while simultaneously providing a solution to recoup monies owed.
  • Keep a record– Be sure to keep a record of your conversation by taking notes while you talk. In doing so you are able to keep on ongoing log or record of your conversations that you can summarize later and send to the debtor via email or letter post. This will help prevent any miscommunications or arguments over what was and wasn’t said and should include any repayment plans if mentioned.

Recording your conversation

If you plan on recording the conversation, be sure to get the other party’s permission before you do so. You can check your state’s requirements for recording conversations at the following website https://www.rcfp.org/reporters-recording-guide/state-state-guide

Leaving messages.

It is a good practice to assume that any messages left for the debtor will be heard by other parties. Be careful not to disclose any personal information related to the debt to anyone other than the debtor.

On the other hand, if this is a business-related debt, full details regarding the debt can be left on any phone number related to the business or any personal number belonging to the directly related party.

Effective communication is one of many often difficult hurdles you can encounter when attempting your debt collection efforts. Employing a commercial collection agency like Stevens-Lloyd Group, Inc to handle things can help eliminate the learning curve when it comes to successful debt collection efforts.

Give us a call today – Toll-Free: (888) 882-2282

Debt Collection in Mexico – A List of Things Before You Begin

Companies doing business in Mexico tend to look at debt collection in Mexico from two points of view. One side of the argument sees debt collection in Mexico as too complicated and nearly impossible to do, while the other is lulled into a false sense of security due to the relatively uncomplicated and straightforward ease of

Companies doing business in Mexico tend to look at debt collection in Mexico from two points of view. One side of the argument sees debt collection in Mexico as too complicated and nearly impossible to do, while the other is lulled into a false sense of security due to the relatively uncomplicated and straightforward ease of collecting debt within the US.

The truth of the matter is debt collection in Mexico falls somewhere in the middle. Having this understanding will better equip you with your efforts when collecting debt in Mexico due to their rules and regulations, which is why we will always recommend you working with a Commercial Collection Agency.

That being said, should you choose to go it alone, use the following criteria as a checklist, per se, to help guide you in your debt collection in Mexico efforts: The size of the debt, the relationship and structure of the debt, documentation of the debt, and the challenges associated with the debt.

Debt Collection in Mexico Criteria:

The Size
The size of the debt owed should be the primary consideration made before pursuing your debt in Mexico. First, determine the size of the debt and what you costs will be associated with the collection process. Collecting debts internationally, especially in Mexico, can be relatively expensive, time-consuming and often times slow going. Look at things from an economic perspective and the weigh the cost of your efforts, especially your time needed, to determine whether your debt collection in Mexico efforts are worth these valuable resources.

The Relationship and structure
As we previously covered in our First article on Collecting debt in Mexico, before pursuing your debt collection in Mexico efforts, it͛s important to determine the relationship of the debt: is it consumer related or commercial? The response rate for consumer based debts is generally very low and less likely to be recovered, while commercial/business related debts tend to be more responsive and are often easier to recover in the collection process. Is the debt from a loan or is it from unpaid invoices or transactions? Also, what is the financial status of your debtor? Is there an interest of the debtor to use your goods or services in the future? Taking all of this into consideration will help you greatly in your debt collection in Mexico effort

The Documentation
Proper documentation is crucial to your debt collection in Mexico efforts. Contract, invoices, order forms, order confirmations, promises to pay, acknowledgments, any and all correspondence are essential in your efforts that will often make or break your chances of recovery, and will should you choose to take a legal route.

The Challenges
Debt collection in Mexico presents many complications, none more so that locating the debtor. Mexico is comprised of large, largely developed and urban areas, as well as obscure and remote locales; the former often present the easiest environment for collection efforts while the latter pose steep hurdles and challenges with your efforts. Turbulent socio-political changes within the country of Mexico affect areas differently making the rural locales the hardest affected.

Should you choose to go it alone and not use a commercial collections agency like The Stevens Lloyd Group, LLC in your debt collection in Mexico efforts, the above items – The challenges you face, having the proper documentation, the relationship and structure, and the size of the debt – are all things that are imperative for you to check off your list before you begin

Should you choose to go it alone and not use a commercial collections agency like The Stevens Lloyd Group, LLC in your debt collection in Mexico efforts, the above items – The challenges you face, having the proper documentation, the relationship and structure, and the size of the debt – are all things that are imperative for you to check off your list before you begin

Questions? Give us a call Toll-Free: (888) 882-2282

Are a business owner attempting to tackle debt collection in Mexico on your own? Using a reputable collection agency can often help make things easier relieving you of unnecessary burdens . Turning accounts over to an agency for collection may seem like signaling defeat or throwing in the towel to some collectors. Rather than take the defeatist attitude of ͞I can͛t collect this on my own,͟ take the attitude that collection is a team effort with you and your outside agency working together.

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!

It’s easy. Here’s all you need to do:
Just fill out this convenient online placement sheet.

Once it’s sent, you’ll be on the road to discovering The Stevens-Lloyd Group, Inc. difference!

Answers to Questions Regarding Collecting Debt from Mexico

When it comes to collecting debt from Mexico, and using the services of an International Collection Agency like Stephens-Lloyd Group, LLC, questions often arise. From the type of debt we collect from Mexico and the processes we use, to length of time it takes to recover the outstanding debt and what we need from you to take the necessary steps, we͛ve received…

When it comes to collecting debt from Mexico, and using the services of an International Collection Agency like Stephens-Lloyd Group, LLC, questions often arise. From the type of debt we collect from Mexico and the processes we use, to length of time it takes to recover the outstanding debt and what we need from you to take the necessary steps, we͛ve received and answered them all.

Below is a list of the most frequently asked questions (FAQs) our firm receives regarding collecting debt from Mexico.

Collecting Debt from Mexico FAQs

Why should I use a commercial collection agency like Stevns-Lloyd Group, LLC to collect my debt from Mexico?
Sadly, the increase of trade with Mexico since the 1990͛s has given rise to a culture of non-payment of contracts and debt creating more and more debt recovery cases from Mexico. Collecting debt from Mexico can be a complicated process. As with all international debt recovery efforts, it͛s important to understand the laws and procedures of Mexico when attempting to collect on a debt. Every country has their own set of rules and regulations when it comes to international debt collection making it difficult for someone outside of an International Collection Agency like Stevens-Lloyd Group to handle.

What type of debt from Mexico do you service?
When it comes to collecting debt from Mexico, we work with all kinds of, both commercial and personal that result from an act of trade between two individuals or companies including contracts, personal loans, bank loans, lines of credit, credit cards, invoices, and more.

What is the debt collection process when collecting debt from Mexico?
We begin by attempting to contact the debtor in his/her home or place of business, making all attempts to recover the debt through amicable methods. Should these efforts be exhausted, we will then proceed with legal actions employing the services of some of the top International Collection Attorneys.

How long does collecting debt from Mexico take?
When collecting debt from Mexico, if we are able to establish a payment arrangement with the debtor upon the first contact, times of recovery may be expedited quickly. However, should the debtor choose to ignore our first attempts at contact, prove difficult in locating, or oppose paying, negotiations can take several months if not longer. Which is why it is important to hand over your debt collection efforts to a commercial collection agency like Stevens Lloyd Group, LLC as soon as possible.

Do I need to provide Stevens Lloyd Group, LLC with Documents when attempting to collect a debt from Mexico?
Yes. In fact, it is essential. Without the proper documentation supporting the debt (Invoices, promissory notes, contracts, agreements, payment commitments, lines of communication, etc.) it will prove very difficult for us to act on your behalf when collecting debt from Mexico. Please take a moment to read through our post on collecting debt in Mexico: 5 things to consider, we cover this topic in more detail.

Are commercial collection agency fees legal for me to add to the balance of the debt?
Yes, if legal proceedings are necessary while collecting debt from Mexico and there is a ruling of payment where the judge orders the debtor to pay any and all ͞costs and expenses͟ incurred by the plaintiff.

Do you have a question regarding collecting debt from Mexico not answered above? Give the Stevens-Lloyd Group, LLC a call today Toll-Free: (888) 882-2282
If you are a business owner struggling with collecting debt from Mexico, a reputable collection agency can often help. Turning accounts over to an agency for collection may seem like signaling defeat or throwing in the towel to some collectors. Rather than take the defeatist attitude of ͞I can͛t collect this on my own,͟ take the attitude that collection is a team effort with you and your outside agency working together.

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!

It͛s easy. Here͛s all you need to do:
Just fill out this convenient online placement sheet.
Once it͛s sent, you͛ll be on the road to discovering The Stevens-Lloyd Group, Inc. difference!

Collecting debt from mexico

Tagged on: debt collection mexio
Mitch Stevens August 22, 2017 debt collection mexico, international debt recovery