Debt collection agency vs. debt collection attorney – Make a wise choice!
Running a successful business is a skill and can become overwhelming at times with financial pressure. As a business owner, it is your ultimate responsibility to manage the business’s funds that inflows and outflows. When your customer misses a payment, there are several options you can use to recover the money. On a trivial level, you can handle it, but if the amount is enormous and requires professional intervention, you seek debt collection agencies.
Debt collection agencies
Large or small businesses do not want the hassle of chasing the debtors who fail or delay repaying. Tracking delinquent debts is a time-consuming activity, and therefore, debt collection agencies help sort this hassle. The debt recovery companies specialize in the collection from difficult debtors. They have several tools and methods under the Fair Debt Collection Practice Act (FDCPA). When you hire a debt recovery agency, they gather all the details of the delinquencies and then handle each case, priority-wise.
All diverse types of businesses like hospitals, banks, utility companies, and estate agents take the help of collection companies to recover the loan amount. There are phone calls, regular emails, personal visits to the workplace, and even bank transactions by the debt recovery companies to chase the debtors. Most collection agencies work on third-party contracting, so when they recover the amount, you pay them for the services.
Debt collection attorney
Every state in the USA is unique, and it can become daunting to manage interstate transactions during the business. When you struggle to comprehend federal and state law, it is better to seek help from adebt collection lawyer. The debt collection lawyers have all the expertise in state law, federal laws, and legal formalities of debt.
Sometimes the debt recovery agencies are bothering and trying to use illegal tactics to put pressure for collection. You have the FDCPA right to hire a personal attorney who can guide you through the legal process. You may require hiring the attorney for two reasons – when you are a creditor and seek recovery of debts; when you owe some amount to the creditor and are struggling to pay off and seek an attorney to help you with the legal obligation.
Understanding the difference
You may find both very confusing, but the main difference between a debt collection agency and a debt collection attorney is that the agency does not have any legal power. It means the recovery company can only pressure the debtors for repayment but cannot sue or take any legal action against them. However, the collection attorney is more powerful legally and can send written notice to the party. The debt recovery agents only manage the credit ratings and tracking of the debt amount. On the contrary, debt recovery lawyers help protect from scam calls from collection agencies and support in lawsuit proceedings.
Both have quite different responsibilities; it is imperative to understand this before hiring any. Make a wise decision as it is challenging to manage at the amicable level once you get into legal obligations. If hiring a third party for recovery sorts the debt issues, then choose one. And, if you feel harassment is increasing, then just call the lawyer for expert opinion.