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GET A FREE QUOTEOvercoming Statutes of Limitations in Debt Collection
There is approximately 13 trillion dollar-consumer debt in the U.S, most of which will be hard to recover. Although debt used to be a shameful thing in the past, it is now something most people will not be bothered about today. People have come up with ways to evade paying their debts and go-ahead to share this information on the internet. One of the most common ways debtors avoid payment is by using the statute of limitations to their advantage.
Statutes of Limitation
Debtors take advantage of time. If a debt is long overdue, (mostly 3-10 years), statutes of limitations become applicable. That is, if you are a creditor and you take a debtor to court after this period, you are likely to lose the case.Many creditors find themselves in a bind because they wait too long to take action, ultimately finding out that they cannot do anything once the statute of limitations has expired. If a creditor brings a lawsuit past the statute of limitations, regardless of the merits of the case, the debtor will prevail if they raise the statute of limitations as a defense. To further complicate this issue, most states have statutes of limitations that vary depending on if there is a written contract or not. In most jurisdictions having a written agreement will allow more time to bring an action, but even this is limited. It is also essential to understand how each state interprets a breach date, as this can drastically affect the time you have to sue for a debt. In some states, the date an agreement is considered the breach date where some states consider the last payment date the breach date. Trying to collect a debt without having a clear understanding of these rules can prove to be detrimental.
Benefits of Using Nationally Recognized Debt Collection Agencies
Fortunately for business owners, collection agencies are equipped to handle debtors that seek to avoid payment. These agencies deal with debtor disputes and defenses, the statute of limitations claims among them daily, and have the experience to combat these ploys. There are many debt collection agencies available nationally. So, while looking for these service providers, make sure you go for one that is nationally recognized.
The best thing about using these agencies is you agree on terms of payment. That is, after collecting your debt, they remain with a certain percentage. So, they work strategically because that is where they get their pay.
Additionally, national debt collection agencies can help you retain your clients. Since these agencies are experienced professionals, they know the worth of having repeat customers. They ensure they approach the debtor in a way that will not make them divert from your business.
A debt recovery agency helps you save time. Instead of spending so much time following up a debt, you can use it to improve your business. Leave the agency to do its work, and your debt is recovered within a shorter period than you could have on your own. These agencies have tools you do not. These tools are way advanced to help them communicate and locate your debtor. Using these tools, debt collection agencies can access the debtor’s contact information, which cannot be accessed by other people. From there, they keep constant communication, both verbal and written, with the debtor. This way, the debtor is reminded about the due and makes a better response in terms of the debt payment.
Every year, debt collection agencies help in collecting millions of debts. If your business has been suffering from losses caused by debt defaulters, it is time to get help. Do not allow the statute of limitations to pass and with it the right to collect your debt. Reach out to a reputable debt collection agency for better solutions today and let your business grow.
Get Your Money. Call Now 321-710-3530
We are experts at collecting debt previously deemed “un-collectable debt”.
GET A FREE QUOTE