When Debt Collection Turns Into A Nightmare Call An Attorney
A Debt Collection Attorney is someone who has received a Law Degree from a degree granting institution, and specializes in the area of law known as Debt Collection. Often, a Collections Attorney works within a Collections Agency instead of a private law firm. The role of the Attorney is to protect the collection and legal rights of both the Collections Agent and Agency, and the business owner seeking to collect on a bad debt.
Within a Collection Agency, a Debt Collection Attorney's primary role is to first verify that a Collections Agent is legally entitled to pursue a debt under the law, and to determine whether a Collection Agent is legally entitled to report a debt to a credit agency under the Fair Credit Reporting Act, (FCRA).
Often times, a Debt Collection Attorney will take charge of a debt in one of two ways; if the debt is very old or if a Collection Agent is unable despite their best efforts, to collect on it.
When a private individual or business client assigns an older debt (usually 12 months old or more) to a Collections Agent, it often goes straight to the Collections Attorney for litigation. This is usually done if the Statute of Limitations for collecting on the debt is close to expiry. At this point, the Attorney will usually commence litigation immediately, to protect the rights of the business owner trying to collect on the debt, and to ensure the Collections Agency, and in this case usually the Attorney gets a commission.
The second instance when an overdue debt usually falls immediately into the hands of a Collections Attorney is when, despite all legal efforts a Collection Agent has been unable to collect from a debtor. This can occur for a variety of reasons; such as being unable to locate a debtor, dealing with an extremely uncooperative debtor, or having to deal with an Estate should the debtor be deceased. It then becomes the job of the Debt Collections Attorney to commence litigation, and walk the business client through the process, including the trial and collecting on a judgement, lien or wage garnishment.
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