Collection agencies send demand letters to debtors to recover past due account receivables. A collection agency may send a series of demand letters seeking to collect money due and owing for their client. A demand letter sets forth the collection agencies authority to represent a creditor and the amount the collection claims is due and owing on behalf the creditor.
Florida Collection Agency Demand Letter
Collection Agencies Are Limited in the Scope of the Debt Collection Services the Collection Agency Can Provide
Creditors need to recognize that collection agencies are limited in their ability to effective represent a client in that the collection agency does not hold a license to practice law. Effective recovery of a past due account may sometimes require the filing of a lawsuit to make the debtor come to the table and pay the past due account. Collection agencies also need to refer cases to debt collection attorneys. When the collection action has to refer the matter to a collection lawyer they typically charge the creditor a higher contingency fee.
Flat Fee Attorney Demand Letter for Payment
Our debt collection law firm has started a flat fee demand letter service that creditors may wish to consider before obligating their company to paying contingent fees upon collection. Just like a collection agency our debt collection lawyers will draft an attorney demand letter seeking payment of the overdue account. Because the demand for payment is coming from a collection attorney rather than a commercial collection agency, the likelihood that the debtor will take the demand for payment more seriously increases.
You May Save Money Using a Collection Lawyer
Because your account would already be with debt collection attorneys, if litigation was truly required to liquidate the past due account, there would be no need to forward the debt collection claim from a collection agency to our commercial collection law firm. Your company would not to pay a higher contingent collection rate to the collection agency thus, saving your company money upon the recovery of your money.
Florida Collection Agencies Hire Our Florida Collection Attorney For Their Collection Agency
Florida collection agencies have been contacting our debt collection law firm more frequently because it has been coming more difficult for their Florida collection agency to collect on past due accounts. The difficulty for Florida collection agencies is that the collection agency is limited to making collection calls and sending out demand letters for payment. This is still a very tough economy and Florida collection agencies do not have the same effectiveness as a Florida collection attorney filing a lawsuit to collect money.
Our Florida collection lawyers work with Florida collection agencies when the Florida collection agency after sending debt collection letters and after making telephone collection calls, has been unable to effectuate collection of their clients account receivable. Our debt collection attorneys look at a variety of credit and collection strategies to devise a collection strategy that Florida collection agencies cannot implement. Florida collection agencies are not license to practice law. Because of that, the collection agency has to refer the collection case to our Florida collection attorney and charge you a higher contingency fee.
Recognizing that creditors are paying high contingency fees to Florida collection agencies, our debt recovery law firm has implemented a low flat fee attorney demand letter service. Just as Florida collection agencies send demand letters for payment, our law firm will not charge a contingent fee like a Florida collection agency. Our collection attorneys also offer a flat fee telephone demand service.
We invite you to visit our web site to learn more about how we can save your company money by choosing our attorney demand letter service to attempt collection of your companies past due accounts rather than using a Florida commercial collection agency.
Collection agencies have been referring their collection agency accounts to our commercial collection law firm early in their debt collection process. In previous blog posts we have discussed the difference between a collection agency and a collection lawyer. There has been a lot in the news about collection agencies, With the economy slowly recovering businesses are starting to extend credit again. The result is that there are more collection accounts that may need to the assistance of a third party debt collector. The client needs to decide whether to send the account to a commercial collection agency or a collection attorney.
When the client has many small balance accounts that are past due, sending those collection accounts to a collection agency may make sense. A commercial collection agency is not a collection attorney and not license to practice debt collection law. Collection agencies have systems in place for handling huge volumes of claims and can send multiple demand letters for payment and make many debt collection phone calls. However, once a matter is not able to be collected a collection agency must send the account to a collection law firm to pursue further debt collection activities.
Our law firm has launched a new service wherein; a creditor can put the power of an attorney demand letter behind their demand for payment. Most people who owe money would take the threat of legal action from a lawyer letter demanding payment over simply receiving a collection letter from a commercial collection agency. Our attorney demand letter for payment service also offers an avenue where collection calls are made from our collection attorneys and trained collection staff.
Collection Agencies Use Our Debt Collection Service
We encourage you to visit our web site to learn more about our attorney demand letter service for debt collection. You may find this service a better and less expensive alternative to placing your collection accounts with a collection agency.
Collection Agencies and Collection Departments Utilizing Debt Collection Book
Our EBook Collecting Account Receivables has been getting very positive feedback. Our commercial debt collection clients have told us that they downloaded the book and have had their accounting staff read it. The book helps creditors set up internal debt collection strategies. Discussed is also the difference between a collection agency and a debt collection law firm. Collection attorneys can provide debt recovery services that commercial collection agencies are not able to provide legally.
Collection agencies are limited to making phone calls and sending demand letters for payment. Collection agencies cannot file a law suit, take depositions in aid of execution or garnish bank accounts to seize assets once a judgment is obtained. Obtaining a judgment is not the hard part if a debt is justly owed. It is how you collect on a judgment. A collection agency is not licensed to practice law and must retain a collection lawyer to implement a litigation strategy to collect on accounts. Collection agencies when forwarding a debt collection case to a collection attorney typically will charge their client’s a higher contingent fee because they have to charge a fee on top of the collection lawyer’s fee. Many credit managers realize that when it is apparent customer is not paying, it makes sense to retain a debt collection law firm rather than a collection agency. Not only will the credit manager save money but, putting the power of an attorney behind your demand for payment is more effective.
Collection agencies serve a purpose when there is a high volume of cases with relatively small balances to collect. We invite you to contact our commercial debt collection law firm to discuss the differences between utilizing a collection agency or forwarding your commercial collection accounts directly to a collection attorney.