Collection Agency/Small Claims

[Sparky555]

I just liened a property for non-payment & will eventually go to small claims. Meanwhile I'm looking for a good collection agency. Any suggestions?

 

[NolaTigaBait]

show up at the house with tony soprano and a bat...they might pay then

 

[hbiss]

To me filing a lein and small claims is one route. A collection agency is another for those who can't or don't know how to persue a debt on their own. Seems to me you are doing fine, why pay someone else?

-Hal

 

[growler]

A collection agency is another for those who can't or don't know how to persue a debt on their own.

This is very true.

The first thing about debt collections is not to get all excited and emotional.

Show up at their home or place of buisness with a copy of the invioce and contract and see if they have a legitimate reason for not paying. Some people will tell the truth that they just don't have the money. You see if you can work something out ( I'm willing to accept livers, lungs, hearts or most body parts that can be sold on the black market).. Little joke there.

If you can't work anything out then inform them that you will have to take legal action. This doesn't worry to many people. Then have a registered letter sent to them useing the sheriffs department as courier. When a guy with a badge hands you a registered letter it still doesn't mean anything but most people don't know this and it makes them think you are serious.

This method will let you bluff it out for awhile and when you finally give up you can turn it over to a collection agency. You can collect from about 90% of people by just putting a little pressure on them. The other 10% it doesn't matter what you do you are not getting any money, either they don't have it or the are very professional at ripping people off.

 

[celtic]

Then have a registered letter sent to them useing the sheriffs department as courier. When a guy with a badge hands you a registered letter it still doesn't mean anything but most people don't know this and it makes them think you are serious.

Good luck with that.

In NJ, there is NO WAY a Sheriff's officer is going to deliver the mail. A summons to appear, maybe. Some areas allow private companies the authority to "serve" people - legal documents demanding their presence before a judge....but the mail? Never heard of that.

You could send the invoice via USPS certified with return receipt requested. This is a perfectly easy and legal means of having a letter delivered and knowing who signed for it, making it legally admissible in court as "evidence".


When you do get to the SCC part of this, the person will be notified by the courts [served] - and that is not something many people ignore.

 

[Rockyd]

Never tried it, but there is another avenue - anyone ever use a factoring company?

 

[celtic]

Never tried it, but there is another avenue - anyone ever use a factoring company?

I bought this in Monopoly once:

What is a "factoring company"?

 

[Rockyd]

A faster trail to "cash available" now.

Think of it as "credit swap" non-tangible asset sold for a percentage to a finance house.

Click her to see one.

 

[cschmid]

wow legalized loan sharking..so you submit an invoice and get cash and you only pay a small monthly charge and interest, plus you can pay them to collect the debt as well..Kind of like hiring a financial firm to help bank roll your operation..I bet a good CPA and Banker would do the same thing except you have to manage the whole operation..

 

[Rockyd]

Isn't outsourcing wonderful?

 

[cschmid]

LMAO...but that is what free enterprise is about and this is not a bad looking business Idea..

 

[Rockyd]

I see that Viking hat...Are these your guys going to collect?

 

[Fulthrotl]

Isn't outsourcing wonderful?

maybe, maybe not..... down in the fine print, was this:

" If the factoring agreement has a recourse clause,
the business owner has to repay portions of the
advance back to the funding source to cover
any invoices not paid by the business owner's
customers. If the factoring agreement has a
non-recourse clause, the funding source
bears all risk in collections."

wonder how much they discount the paper to
assume the risk......? :smile:

 

[cschmid]

I see that Viking hat...Are these your guys going to collect?

LMAO....that does not anything like Ole, Guido and Thor...

 

[Rockyd]

wonder how much they discount the paper to
assume the risk......?

Thinking 70/30? don't know for sure. Better to get away with a percentage of something, than 100% of notheing.

I know, I know, we will make it up in volume - charge $9.00 for a $8.00 part...

Next thing you know, you'll want TARP money from congress...

 

[growler]

In NJ, there is NO WAY a Sheriff's officer is going to deliver the mail. A summons to appear, maybe. Some areas allow private companies the authority to "serve" people - legal documents demanding their presence before a judge....but the mail?

I wasn't talking about a love letter but a summons to appear in court. It is a legal document. I just looked up the fees for this county. It would cost $48.50 file a complaint in magistrates court and another $25.00 to have summons delivered by sheriffs deputy. For a total of $73.50.

If that doesn't get their attention then what's a collection agency going to do?

For a bad check I think you have to send a certified letter first but I think you can have that delivered by the sheriffs office or just regular certified mail.

 

[celtic]

Then have a registered letter sent to them useing the sheriffs department as courier.

When you do get to the SCC part of this, the person will be notified by the courts [served] - and that is not something many people ignore.

I wasn't talking about a love letter but a summons to appear in court.

A registered letter is just that - a letter.

A summons to appear - has already been filtered through the court system.
You [ a citizen in general ] does not to get to tell the court when you want a court date [summons to appear], they fit you into the days docket at their discretion.


It may seem like a small point, but these are two completely different things...one has virtually zero weight [other than as evidence] while the other is a real eye opener.

 

[growler]

A registered letter is just that - a letter.

It may seem like a small point, but these are two completely different things...one has virtually zero weight [other than as evidence] while the other is a real eye opener.

You are right, it's been awhile since I tried to collect a debt in a legal manner.

I was thinking that you could get the letter of demand delivered by the sheriff's office but you can't only get the summons. You do have to fill out all the paper work yourself or hire a lawyer to do so.

Many areas do required that a letter of demand ( stating demand of payment & intent to take legal action) before fileing suit. This should be a registered letter and can be used as evidence.

I haven't had much trouble collecting in the last few years because I get as much up front as possible and don't let anyone get in to deep. With the ecomony the way it is I may need a coat of wax on my bat before it's over. But I'll try just to stay away from dead beats.

 

[boboelectric]

I got beat a couple of times. In these bad times, get at least material cost + labor up front.

 

[ohm]

You are right, it's been awhile since I tried to collect a debt in a legal manner.

Many areas do required that a letter of demand ( stating demand of payment & intent to take legal action) before fileing suit. This should be a registered letter and can be used as evidence.


In Alabama, a contractor must send the HO a letter that he is about to declare a lien on their property, and actually file with the Probate Judge, within 6 months of performing the work.

The letter can be sent registered or "proof of delivery..by the letter carrier" since the deadbeats have learned not to sign for mail.

You can do it yourself and it's not expensive.