If you currently have a debtor that is making excuses for non-payment or outright refusing to pay, then you might want to consider soliciting the services of a professional debt collection agency. In the past few years, there has been a rise in the number of debtors who refusing to pay monies owed. Due to this, debt collection agencies are quickly evolving. Such agencies are serving a major role in collecting debt from the defaulters.
A debt collection agency can use different tactics and strategies in order to collect the payment from the debtors. Advanced business debt collection strategies and tools used by agencies place a different type of pressure on debtors to incentivize paying the outstanding debt. One of the most creative tactics the Stevens Lloyd Group employed was grounding an asset of a debtor in the United States until payment was made resulting in the collection of $146,588.32. Here is an excerpt from our Air Philippines case study :
“Through our investigation, we come to know that it owned an aircraft which was outright on the ground in Los Angeles, CA. The Martin Goldman firm based out of southern California was retained by the Stevens-Lloyd Group. A lien against the Air Philippines was placed by Mr. Goldman. He seized the plane which was halted on the ground at LAX. Leaving no choice to Air Philippines, it had to pay our attorneys $146,588.32 to free the aircraft. Through the use of advanced debt recovery practices and their experience in the Aviation Industry, The Stevens-Lloyd Group recovered the whole amount which the debtor owed to GM Air $146,588.32. Their team achieved this within four months of intense collection activity.”
Debt Collectors Strategies:
Collection Agency Communication
A debt collection agency will first contact the debtors anytime. They may also send emails to them. If the debtors are not responding to emails or calls then they find another solution. To track them down, they may contact their neighbors, friends or relatives in order to contact them.
Debt Service Legal Action
If communication does not work or debtors are responding, then professional debt service providers will take legal action against them to collect the debt. They can send liens, garnishments, and lawsuits after getting a court order against the debt defaulters. Garnishment is a legal procedure in which the creditor can freeze the bank accounts of the debtors. Debt collection agency can also take a lien against the property of the debtor.
Debt Collection Expiration
Debt collection does not have any time frame rather it can be collected anytime as long as the debt collection agencies attempt to collect. If the time given to debtors to pay their debt is over, then a collection agency can take legal action. Debt collectors can also report negative information on the credit report of debtors which may affect their credit scores.
In this hectic life, debtors create a lot of financial stress on a business. If you have failed at all your debt recovery attempts and are out of debt recovery solutions, consider hiring need a professional. The Stevens-Lloyd Group is known for our advanced debt collection techniques, we have very strong relationships with collection attorneys and are able to handle any size of outstanding debt. We take the stress out of debt collection!