Small business has its own pros and cons. They might earn in tons but also face daily hassles and worries that has to be faced each day. One such business hassle deals with money-debt collection. Most people who can afford pay their daily costs when they purchase goods or services. But some hold on and keep debts and promise to settle them within a promised timeline. It becomes a difficult task if it is not paid on time by the debtor to the creditor.
The most famous consumer protection law is the Fair Debt collection practices Act. This does not apply to some business. Although this particular law does not support you in the debt collections there are other laws and rights to support you recover your money back from debtors. Some small business can also hire Business Debt Collection agencies to collect the debt money.
Legal options to collect debt
If a debtor is harassed or threatened by a debt collector or a Debt Collection Agency or a DCA, a collection attorney can advocate him/her. At times you have to file a judgment to confirm if you owe the debt. Advocating a collection attorney helps you back of the DCA and their off limits.
How are old debts dealt
Sometimes the DCA get debt from businesses and they turn too old. They are not countable. every country has its own limit on debts and laws. They are considered for maximum of about ten years. In such cases it is essential to tell the DCA in writing that the debts have turned old and past the date. So they cannot approach you anymore. Then the reports and checked and verified. This is how the old debts work.
How to deal with paid Debts
If the debt is paid or a half of it is already paid, the debt collection agency has the right to call you anytime. If the debt has been already paid then you will have to notify the debt collection agency in writing about it. Also submit a proof for it. If all are proved and settled, then DCA stops contacting you. Otherwise they have all the rights to contact you anytime to collect the debt post the due date. If your debt is settled or returned, then also one more step that has to be done. Credit reporting bureaus have to be informed in writing about the complete debt closure.