Accounts Retrievable Systems - Hiring A Collection Agency
Collecting on past due accounts can be stressful. Hiring a collection agency is not. Accounts Retrievable Systems works thoroughly to collect on your past due accounts while you focus on new business and keep your attention on clients who are paying on time. Our collection agency has a national network of over 420 collection attorneys. Our success rate depends largely on the age of the debt, the time of placement and will always vary depending on the industry. There is no guarantee that we can always collect on past due accounts but we can guarantee that each and every claim placed with us will be worked throughly as we put our best efforts in collecting your money.
There is a statute of limitation on outstanding debts. This statue varies from state to state, but generally falls between three to seven years. Judgments however are good for 5 to 20 years, depending on the state. Also in some states there may be an option to renew the judgment for five or ten more years. Our collection agency is full of experts on debt collection. Unless you are an expert yourself you may have a hard time collecting on past due accounts and judgments. This is what we do, and we do it well.
To start the collection process there is some forms of documentation you will ned to send up. You will have to send our completed placement form along with a comprehensive statement of accounts and if possible, invoice copies are usually sufficient to start the debt collection process. If there are any “bad” check that are part of the debt from your client, those are required as well. Using the services of a debt collection agency will often get the attention of the debtor and they are more likely to pay up.
Accounts Retrievable Systems - Collection Agency Will Collect
Using a collection agency you can get the money that is owed to you while you remain stress free. While our employees are working to collect on your account, you can focus on your business both new and old. We are experts at debt collection just like you are an expert at what you do. There is some information we need to collect on your accounts, this includes: name, address, contact name, fax number, telephone number, and a state which shows the outstanding ballad and the invoice information. For judgment collections we need a copy of the Judgment or transcript. Any additional backup documents such as invoice copies, contract, etc. can be provided at the time of placement but also may be submitted at a later date.
We’ve been asked before “Do you have a minimum number of months the account is worked by your attorneys before you close it?”. The answer to this is no. We will generally work a file for at least 90 days, at which time we should be able to determine the accounts collectability. Should circumstances dictate, we could close the file earlier (bankrupt, out of business, skip, paid, or settled) or hold them (solid contact, negotiating payment, payment plans, litigation, Judgment execution, etc.) longer.
We begin attempting the debt collection as soon as 48 hours of receiving the claim. We have a department dedicated to skip tracing and keep you updated on your accounts. We forward you a performance report during the first week of every month, and this will inlaced a line item detail showing the current status of each account we are trying to collect on. If you are stressing out about money owed to you, don’t. Let our collection agency help collect the money that is owed to you.
Accounts Retrievable Systems - Use A Collection Agency
Accounts Retrievable Systems is a national collection agency that employs only experts in debt collection. We collect account types such as Judgments, commercial accounts, consumer accounts, unpaid child support, spousal maintenance, landlord/tenant matters, personal loans, auto loans, and also student loans. The minimum debt that we collect for claims is $1,500. Accounts Retrievable is an international collection agency which means, yes, we do collect international accounts. We are your global resource for all international debt collections.
We work on a contingency fee basis, which is standard in the collection industry. That means that if we collect, we earn a fee from the money collected. If we do not collect, there is no charge to you for our efforts. There are no upfront charges that you have to pay, we only charge you if we collect. Our collection agency is easy to work with, especially placing your accounts for collection. Whether it is one account or a large volume, placing with ARS is very simple. You can place through our website, e-mail, or by fax. The placement process is completely customizable – whatever is easiest for you. For those clients that may require assistance in establishing an automated process, we can provide the technical expertise to help extract and transmit your data securely.
Trying to determine when an account should be sent for collection can be figured out in a few ways. Typically there are no set parameters but generally you would after 90 to 150 days from the date of invoice or the last payment made by your customer. Circumstances such as loss of contact, broken promises, mail returns or lack of response would be signs that the account should be forwarded sooner. The sooner you contact a collection agency to help collect the money owed to you, the better change for recovery.
Accounts Retrievable Systems – Debt Collection Laws
A collection agency representative must not communicate with the consumer at any unusual time or place or at a time or place which the collector should know would be inconvenient to the consumer. Unless the collector has knowledge of circumstances to the contrary, he should assume that the most convenient time for contacting the consumer is between the hours of 8 am and 9 pm. If the collector calls the consumer before 8am or after 9pm, the debt collector is violating the Fair Debt Collection Act.
A debt collector should not contact the consumer at their place of employment if he knows or has reason to know that the consumer’s employer prohibits such calls, according to the fair debt collection laws.
As a matter of fair debt collection practices, a debt collection agency representative must not use any written communication which appears to be a legal document or which gives the appearance of being authorized, issued or approved by a government, governmental agency, or attorney at law, when it is not-and must not misrepresent that documents are not legal or don’t require a response from the consumer when in fact they do. An agency is prohibited from using any form of communication that may appear as though it came from an attorney’s office, a governmental agency, or the police. This includes any document that looks like a court order, judgment, or a subpoena.
According to the Fair Debt Collection Act, a debt collection agency representative should not communicate with the consumer under the guise of any attorney by using the stationery of an attorney or forms or instruments which only attorneys are authorized to prepare. A debt collector cannot send a debt collection letter from a “legal department” when no such department exists.
Accounts Retrievable Systems - Excuses Debtors Make
The more questions you ask, the quicker you will get to the truth of the matter. When debtors lie about why they are not paying, they are hoping that you will accept what they are saying and drop the subject. The more questions you ask, the more uncomfortable debtors become. Eventually, sending the creditor a check becomes much more appealing than answering all of your questions and having to come up with one excuse after another. The advantage you have is that most people in debt collecting will accept excuses at face value and will call back at anther time. Here are some of the most common excuses you are apt to hear. Think about how you will respond to these excuses before making those necessary phone calls with your consumers.
1) The computers are down and we are unable to print checks right now.
2) I never received a bill for the product or service. I lost the bill.
3) The check is in the mail.
4) I don’t have any money.
5) Hardship (lost my job, illness) and can’t afford to pay you right now.
6) Our computer prints all checks at the end of the month.
7) We are having serious cash flow problems.
8) We are expecting a big check in a month, and then we can pay you in full.
9) When I get paid, you’ll get paid.
10) The boss is out of town and will not be able to sign the check for two weeks.
11) I’m the controller and I handle the payables.
12) I have a dispute with the invoice.
13) I have a dispute with the product or service.
14) We need proof of delivery before we can pay.
15) We can only pay from original invoices, not faxed copies.
16) Our accounts payable person quit.
17) Our company pays net 90.
18) We’re still waiting for approval.
19) My spouse pays the bills.
20) I don’t owe anything.
Accounts Retrievable Systems - Collecting Old Debts
Collecting debt can be an overwhelming process. Here at Accounts Retrievable we have gathered a few tips on how to make this process go as smoothly as possible.
PREPARE: Review the paperwork on the debtor before making the call. Know the history of the account, credit record, the promises kept/broken. Have all records in front of you, ready for reference.
ATTITUDE: Adopt a straight, professional business-like attitude. You have a contract, you delivered the goods, money is owed, and you have a right to expect payment. Never let collecting debt become personal. Don’t yell or raise your voice; and NEVER swear. Don’t threaten; legal action is your recourse.
CONTACT: Make sure you’re talking to the right person. Don’t let the individual brush you off with “You’ll have to talk to the bookkeeper.” Identify the person who will pay the bill. If you can’t get through after several calls, tell the secretary that you know your calls are being screened. Indicate the purpose of your call and if necessary give deadlines.
CONTROL: Control the conversation. Keep it focused on the debt and on the repayment schedule. Don’t let the customer sidetrack you with personal history, excuses, etc. Remember, the object of your call is to collect money, or get a commitment, not to become buddies with the customer or win arguments.
FLEXIBLE: Be ready to adjust to the situation. Think about the kind of customer you’re dealing with and adapt to meet the circumstances. Be prepared to accept a reasonable payment schedule, and a willingness to deal with a customer’s circumstances.
NOTES: Keep detailed, accurate notes of every contact with the customer. Probe for further information on the customer. Notes of these contacts will help you in subsequent phone calls, and may be invaluable in litigation. Good notes will also help in further credit decisions, or in cases where skip tracing may be needed.
PRODUCTIVE: Keep contact brief and to the point. This is a business call, not a social one. View your efforts on a ratio of time expended to results achieved. Long conversations probably mean the customer is stalling you, or trapping you in the buddy syndrome.
PRECISE: Never leave a contact open ended, such as “We’ll talk next week,” or “I’ll send what I can.” Every contact should result in a commitment to payment, of a specific amount, by a specific date, even the check number the customer is using to pay the pledge.
TIME: The longer an account is held, the less likely it is that it will be recovered. If payment or a payout is not arranged within 90 days, place the claim with a collection agency or start legal proceedings.
PLACEMENT: Use only an agency that is a member of the American Collectors Association OR the Commercial Collection Agency Section of the Commercial Law League of America. This will insure that you’re dealing with ethical professionals who are fully bonded to guarantee your remittance.
Accounts Retrievable Systems - What A Collection Agency Does
A Collection Agency is a business that collects debts for a fee or percentage of the total amount owed on behalf of the original creditor.
While some collection agencies offer flat fee services, most operate on a contingency fee basis. The fee the collection agency charges is based on how old the debts are and how much business a creditor has to offer. The less amount of time the debt has been outstanding and the more outstanding accounts receivable a business has, the lower the percentage the collection agency will charge for collections.
The standard rate in the collections industry for business-to-business accounts is 30 percent. The rate for collecting consumer accounts is higher. The typical collection agency fee is in the 20 to 40% range.
This may seem like a lot, but collection agencies have experience with and knowledge about debt collection that individual business owners don’t have and hiring one can be well worth it if the amount of outstanding accounts receivable warrants it.
If you do hire a collection agency to collect your business’s debts, note that in Canada collection agencies are regulated by the province in which they operate. That doesn’t mean that you have to hire a local collections agency; just that you need to be sure that the collections agency you hire is fully licensed and bonded in your province.
From a consumer’s point of view, the fact that collection agencies are provincially regulated means that what a collection agency is allowed to do when pursuing collections also varies from province to province, although there are commonalities.
Accounts Retrievable Systems – Factors Affecting Alimony
When alimony is being determined, the factors vary greatly from state to state within the U.S. Some state statutes, including Texas, Montana, Kansas, Utah, Kentucky and Maine, give explicit guidelines to judges on the amount and/or duration of alimony.
In Texas, Mississippi and Tennessee for example, alimony is granted only in cases of marriage or civil union of ten years or longer and the payments are limited to three years unless there are special, extenuating circumstances. Furthermore, the amount of spousal support is limited to the lesser of $2,500 per month or 40% of the payee’s gross income.
Other states, including Massachusetts, California, Nevada and New York have relatively vague statutes. These simply list “factors” a judge should consider when determining the alimony payments. In these states, the determination of duration and amount of alimony is left to the discretion of the family court judges who must consider case law in each state.
In general, there are four types of spousal maintenance:
Temporary Alimony: The is where support is ordered when the parties are separated prior to divorce. This type of alimony is also called alimony pendente lite which is Latin meaning “pending the suit”.
Rehabilitative Alimony: This is the support given to a lesser earning spouse for a period of time necessary to acquire work outside the home and become self-sufficient.
Permanent Alimony: Support paid to the lesser earning spouse until the death of the payor, the death of the recipient, or the remarriage of the recipient.
Reimbursement Alimony: Support given as a reimbursement for expenses incurred by a spouse during the marriage (like educational expenses).
Accounts Retrievable Systems - Enforcement Of Child Support
In respect to child support obligations, a dead-beat parent is one who has refused to provide child support payments or expenses. As an informal term, this is often extended to obligors who are willing but unable to pay; governmental child support agencies typically refer to clients as being in compliance, not in compliance or criminally non-compliant. Compliance is judged by the paying party’s performance in meeting the terms of the legal child support court order. In some circumstances, obligors found “not in compliance” or “criminally non-compliant” have even had their professional (e.g. doctors, lawyers, dentists, etc.) and driver’s licenses suspended or revoked in an effort to collect monies for support and shared expenses.
Enforcement of Child Support Payments
Regulations and laws on the enforcement of child support orders vary by country and state. In some jurisdictions, such as Australia, enforcement is overseen by a national office. In others, such as Canada, the responsibility to enforce child support orders rests with individual provinces, with financial and logistical assistance from the federal government. In the United States child support enforcement is also handled largely at the state level, but non compliant parents who meet certain criteria, such as traveling across state lines to circumvent orders or owing more than two years of support payments, may be subjected to federal prosecution under the Federal Deadbeat Punishment Act.
One focus of Article 27 of the Declaration of the Rights of the Child is the establishment and strengthening of international treaties to further aid in child support order enforcement across national and international boundaries. Under these agreements, orders established in one country are considered valid and enforceable in another country, and may be pursued through local court processes. The goal of such conventions is to ensure that noncompliant parents will not be able to evade support payments by crossing an international border.
To this end, various international conventions regarding inter-jurisdictional enforcement of maintenance orders have been created, including the Hague Conference’s 1973 Convention on the Recognition and Enforcement of Decisions relating to Maintenance Obligations and the 1956 United Nations Convention on the Recovery Abroad of Maintenance.
More than 100 nations currently have reciprocal arrangements for child support orders. Examples of reciprocal agreements include the UK Reciprocal Enforcement of Maintenance Orders (REMO)and those of Canada, Australia and New Zealand, the United States and the European Union.
Consequences of non-payment vary by jurisdiction, the length of time the parent has been noncompliant, and the amount owed. Typical penalties include wage garnishment and denial or suspension of drivers, hunting and professional licenses. In the United States, noncompliant parents who are more than $2500 in arrears may be denied passports under the Passport Denial Program. Australia, Austria, and Finland do not imprison persons for failure to pay child-support arrears. In the U.S., in contrast, non-payment of child support may be treated as a criminal offense or a civil offense, and it can result in a prison or jail term. On a typically day, roughly 50,000 persons are incarcerated in U.S. jails and prisons as a result of child-support debts. In addition, child-support debtors are subject to fines and property seizure.
The enforcement provisions affecting US passports have thus far survived Constitutional challenges in Weinstein v Albright (2001), Eunique v Powell (2002), In re James K. Walker (2002), Dept of Revenue v Nesbitt (2008), Risenhoover v Washington (2008), and Borracchini v Jones (2009).
Accounts Retrievable Systems - Pay Your Debt Collection
Giving money to a collection agency can feel like handing your lunch money over to a schoolyard bully. But it’s different when you legitimately owe what the collection agency is asking you to pay. Paying a debt collection is often painful because the product or service associated with the debt has long been consumed. If you’re debating on whether you should pay a collection you owe, here are 5 benefits of getting rid of those collections for good.
1. Stop collection calls for good.
As long as you have outstanding debt collections, you’ll probably be getting calls from debt collectors. A cease and desist letter may end calls from one particular debt collector. However, since collection accounts often change hands, you’ll keep being contacted about the debt until it’s taken care of.
2. Get approved for credit cards and loans.
Many banks won’t approve your credit card or loan application as long as you have outstanding collection accounts on your credit report. This means no mortgage, no car loan, and no American Express. Even employers won’t hire you for certain jobs if you have unpaid debts on your credit report. Paying the collection won’t remove it from your credit report, but a $0 balance is far better than one that’s still delinquent.
3. Improve your credit score.
As collections get older, they affect your credit score less. Of course, collection accounts will disappear from your credit report after seven years. As long as the accounts are still within the credit reporting time limit, a paid collection is better for your credit score than an unpaid one.
4. Eliminate the risk of being sued.
People assume that debt collectors won’t waste their time or money suing over a small collection. This assumption isn’t always true. As long as you have an outstanding collection that’s still within the statute of limitations, you run the risk of being sued for what you owe. A lawsuit could lead to a court judgment, a public record that will also tarnish your credit report for seven years. And if you still don’t pay up, the collector may get court permission to garnish your wages.
5. You’re closer to being debt-free.
Paying off a debt collection means there’s one less company you owe money to. You may feel like you’ve lost the battle if you pay a debt collection after resisting for months or years. In the long run, paying off a debt collection is better for your credit and your finances. Taking care of debt collections is a good thing, when you can afford to do it.
