As a business owner, you shoulder a tremendous amount of responsibility for every facet of operations, and a large part of your role is managing your company’s finances. Regardless of the industry or type of business you operate, you’ve likely experienced a client or customer who doesn’t pay their bills by the due date. This can be an uncomfortable situation to deal with, but, more importantly, it can consume a great deal of time to attempt to collect this debt. Many business owners then ask themselves, should I call a collections agency? Or go straight to a debt collection attorney?
What Are Your Legal Options When It Comes To Debt Collection In New York?
What are your options if you don’t have the time or interest to tackle these collection efforts?
Many businesses choose to hand over their past due accounts to a debt collection agency, mistakenly thinking this is the best or the only option. However, you do have another choice – a commercial collections attorney.
New York entrepreneurs understandably do not prioritize personally collecting debts when there are so many other essential business endeavours to focus on, which is why working with a third party is preferable.
Debt Collection Agencies In New York
Unpaid bills and overdue invoices can pile up, leading many business owners to hire a debt collection agency. How exactly do these agencies work? After you’ve made your own attempts to convince customers to pay their bills, debt collection agencies can step in and take over these efforts.
They work on your behalf and usually on a contingency basis, earning a percentage or fee when they are successful in collecting debt payments.
These collection agencies work with numerous companies, lenders, and creditors and employ some basic methods to collect unpaid debts.
There are strict regulations in place regarding communication from a debt collector, but some of the methods they can use include:
- Making phone calls to the debtor
- Mailing letters and late notices
- Reporting delinquent accounts to credit reporting agencies
- Contacting other third parties for information
But how effective are these methods? Phone calls are notoriously ignored, mail can go unopened, and people with bills piling up are not usually prioritizing their credit scores or reports.
A more successful route for collecting debt in many situations is by using a debt collection lawyer.
The commercial litigation attorneys at Berkovitch & Bouskila, PLLC in New York have extensive experience with debt collection actions and know how to get you the money you’re owed.
Debt Collection Attorney In New York
One thing debt collection agencies cannot do is take legal action to obtain past-due payments on their own. Some larger collection companies may have lawyers on staff or contract out to a debt collection attorney. So why pay them just to call us anyway? Cut out the middleman and call a debt collection attorney directly.
If a lawsuit is an ultimate route a collection account will need to take, why bother working with an agency that is essentially a middleman when you can go straight to the source of the assistance you need – a debt collection attorney?
Lawyers who specialize in debt or commercial collection are often your best resource for handling unpaid debts. There is more incentive to respond to and cooperate with an attorney than a collection agency.
Finding out a lawyer is managing debt collection can be very motivating on its own, but commercial collections attorneys have more options at their disposal when it comes to collecting debt.
Working with a commercial litigation firm in New York means there are a number of legal remedies that may result in the payment of past-due accounts.
A debt collection attorney can:
- Mail demand letters detailing the legal action that may be taken
- File a lawsuit
- Get a money judgment against a debtor
- Complete legal processes for seizing assets
You also have the option to work with your delinquent account holders to reach a settlement agreement. If you agree to allow monthly payments, for example, a debt collection attorney can write a contract that includes all the necessary terms and provisions.
Success Rate and Reputation Comparison – The Best Route To Go For Debt Collection Is A Debt Collection Attorney
Debt collection agencies have been found to use deceptive, unfair, and at times abusive practices. The Consumer Financial Protection Bureau works to ensure fair treatment, but the negative reputation of collection agencies has continued despite efforts for improvement.
It is possible to find a reputable debt collection agency in New York, especially if you do your due diligence and take the time to research their practices. However, debt collection attorneys, like all attorneys, are held to high standards of ethics and conduct.
The American Bar Association, as well as state bodies like the New York State Bar Association, have ethics committees and rules of conduct that strictly govern the behavior of lawyers.
How does this translate into the collection success rate for your business? Lawsuits are often sufficient to compel your past-due account holders to resolve their debt.
There is rarely a valid reason or defense as to their avoidance of payment, and most debtors have little interest in going to court.
Aside from this, associating with debt collection agencies that have poor reputations can affect your business’ reputation, as well.
Whether you want to uphold your company’s professionalism, show you are willing to be lenient and cooperate with debtors, or take an aggressive route to obtain the money you are owed, a debt collection lawyer can assist you with your goals.
Berkovitch & Bouskila, PLLC offers our clients the integrity, professionalism, and positive results they need. As a leading commercial litigation and commercial collections firm in New York, we have recovered over $150 million and obtained thousands of judgments for our clients.
If you have unrecovered debt or delinquent accounts and would like assistance collecting the money you are owed, call BBLaw for a free consultation at 212-729-1477, or submit our contact form online.
 Federal Trade Commission. Fair Debt Collection Practices Act – Communication in connection with debt collection. https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text#805
 Federal Trade Commission. Fair Debt Collection Practices Act. https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text
 CFPB. https://www.consumerfinance.gov/
 NYSBA. Committee on Professional Ethics. https://nysba.org/committees/committee-on-professional-ethics/
 New York Rules of Professional Conduct. https://nysba.org/app/uploads/2022/08/Rules-of-Professional-Conduct-as-amended-6.10.2022.pdf
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