Your Federal Government Grants Agency Telling You No Never Take No For An Answer!
Your federal government grants agency telling you no on your federal grant proposal? I know how discouraging that can be. You have a great grant proposal to help you business, community or social group. You have spent time finding the right federal government grants agency to submit your federal grant proposal to and “”BAM”. That discouraging letter in the mail.
When it comes to getting my federal grant proposal I do not take no for an answer. I am used to my girlfriend saying it everyday. I do not have to settle for that when it comes to my federal grants.
Here are some of the things that you have in your favor.
You already have the hard part done!
Giving up now would be a crime to society and yourself.
Here are some great tips for redoing your proposal.
Know that before you even approach and agency that they want to make a difference in the world.
Help them do that.
Know what the goals are of your funding source are.
They will be all too happy to tell you. They will also tell you if they give funding to your local area and what institutions they fund for.
Know the person who will be looking over your federal government grants proposal.
Are they a person who knows nothing of your field? Or are they someone who knows a lot about your field and what is going on in it. If they know nothing about your field you need to stay away from technical information that they may not understand. Write to their level of understanding. If they know your field than it is acceptable to use the more technical definitions.
Always follow their instructions.
They will give you clear guidelines to go by. If you want funding do not deviate at all.
Know your funding source.
It will help you to know how to sound and feel in your proposal. Always back things up in fact and a clear understanding of the need for the funding.
Prepare a budget that is easy to read and clear on what it is you want to do.
Always fully explain everything that is going to cost and include other match funding from other organizations
At all cost never, ever slop together a proposal and hope for the best.
It never works and they see this right away.
Do not spend a lot of money going all out on the presentation. It almost never impresses the funding agency.
If you do not receive a federal grant. Ask in writing why. This will help you do further applications. It will help you do a better job redoing your proposal.
Never give up! If you are put on a waiting list or denied outright, don’t wait. Revamp and polish your federal government grants proposal and hand it in somewhere else. Each time your federal grant proposal gets better. You may also appeal some federal government grants agencies. This gets you into a face to face meeting with the the department head. I have overturned denials this way.
I am a college student and single parent who relies on federal grants everyday.
I built this free website that helps find grants.
http://www.federal-grant-news.com/federal-grants.html
Collection Agency Practices
The following information is useful to creditors who are collecting money themselves, or are seeking the help of a debt collection agency. You can use these collection agency practices guidelines when evaluating your own in-house collection procedures. For more detailed information please view the Fair Debt Collection Practices Act.
How May A Collection Agency Contact A Debtor?
A debt collection agency may contact a debtor in person, by mail, telephone, telegram, or FAX.
A collection agency may not contact a debtor:
> Before 8 a.m. or after 9 p.m.;
> At inconvenient or unreasonable places;
> At a place of employment if it is known the employer prohibits such contact;
> If an attorney is known to represent the debtor, the attorney should be contacted instead.
Can A Debtor Stop a Collection Agency From Contacting Them?
A debtor may stop a collection agency from contacting them by writing a letter to the collection agency telling them to cease all communications with them and that they will deal with the creditor directly.
Once the collection agency receives the letter, they may not contact the debtor again except to say there will be no further contact. Another exception is that the agency may notify the debtor if the debt collector or the creditor intends to take some specific action. Ceasing contact does not preclude a lawsuit.
May a Collection Agency Contact Any Other Person Concerning A Debt?
A debt collector may contact a person other than the debtor only to discover or verify the debtor’s location. The collector must:
> Identify himself, but he must identify his employer only if expressly requested to do so;
> Not reveal the consumer’s indebtedness to anyone other than the debtor or his/her attorney;
> Not use a post card or in any way reveal debt collection activity.
The collection agency may contact any person besides the debtor about a case only once.
Validating The Debt
Within five days after contacting a debtor about paying a debt, the collection agency must send a written notice that includes:
> The name of the creditor and the amount of debt;
> That the debt will be assumed to be valid unless disputed within 30 days; if disputed, the collector will verify it and send a copy of the verification or of a judgment against the consumer. During a period when a debt is being verified, the collector may not attempt to obtain payment.
Debt Collection Practices That Are Prohibited
Harassment… Debt collectors may not harass, oppress, or abuse any person; they may not:
> Use threats of violence or harm against the person, property, or reputation;
> Publish a list of consumers who refuse to pay their debts, except to a credit bureau or advertise the debt;
> Use obscene or profane language;
> Repeatedly use the telephone to annoy someone;
> Telephone people without identifying themselves.
False statements… Debt collectors may not use any false statements when collecting a debt; they may not:
> Use false, deceptive or misleading representations as to their identity, such as falsely implying they are attorneys or government representatives;
> Falsely imply that a debtor has committed a crime or state that they will be arrested if a debtor does not pay the debt;
> Misrepresent the amount of a debt;
> Misrepresent the involvement of an attorney in collecting a debt;
> Indicate that papers being sent to a debtor are legal forms when they are not or indicate that papers being sent to a debtor are not legal forms when they are;
> State that they will seize, garnish, attach, or sell a debtor’s property or wages unless they or the creditor intends to do so and it is legal to do so;
> Give false credit information about a debtor to anyone.
Unfair Practices… Debt collectors may not engage in unfair practices such as:
> Collect any amount greater than a debt, unless allowed by law;
> Make a debtor accept collect calls or pay for telegrams;
> Deposit a post-dated check prematurely
Collection Agency
Outsourcing offers you free information on collection agencies and debt collections issues.
Types of Collection Agencies
Financial Credit Collection
Commercial credit collection agencies provide services to the financial sector like banks and financial institutions. The types of debts range from auto loans to credit cards to mortgage payments. These credit collection agencies buy bad debts at discounts from banks, retailers, and auto financiers and then engage in the debt recovery process.
Health Care Credit Collection
The prime motive of a health care provider is to ensure that a patient receives quality and timely medical attention. An additional responsibility to collect debts may dilute the focus of the health care provider and also affect the financial strength of the organization. Hence a health care provider can agree to partner with a credit collection agency for any legal debt recovery. The methods employed for debt recovery are determined by agreement between the healthcare provider and the collection company, in line with the parameters allowed by law.
Retailers
Credit collection agencies also offer their services to retail business operations. Debt collection for these creditors includes debts like unpaid health club memberships and telephone bills.
Bad Check Recovery
Bad checks/NSF can be detrimental to the cash flow of a business and the collection of bad debts arising due to fraud can become an unwieldy task for a business. Collection agencies are equipped with the necessary know-how and resources to tackle such cases involving bad checks. Such collection agencies would pay the receiver an up front sum of a certain percentage of the face value of the check.
Outsourcing the credit collection process allows the creditor to pass off debt liability to an agency that is better equipped to recover these bad debts. The bad debt account is evaluated and the creditor is paid an up front sum. The liability of the debts is then passed on to the collection agency.
Collection Agency Services offers you a wealth of information on how to select the best collection agency for your business.
Stop Collection Agency Harassment
Owing a debt does not automatically subject you to harrassing, threatening and other inappropriate collection agency behavior. Some collection agencies go too far with what I call “renegade collectors” they will repeatedly call you at your home and/or business, threaten to send a marshall over to serve you with lawsuit papers or send intimidating letters, appearing to come from an attorney or law firm, stating that you will lose your car, wages and other property if you do not pay your debt! It does not matter that you failed to pay a debt or that you can not afford to pay your debt at this time no one should intimidate, threaten or harrass you or coerce you to give out personal or financial information. Inappropriate collection procedures can intimidate you into paying for costs that may not even be your responsibility.You are protected by the law from innapropriate collection procedures.
The Federal Fair Debt Collection Practices Act, the New York City Consumer Protection Law Regulation 10 and New York State Statute, General Business Law, Article 29-H, (the “State Statute”) all prohibit threatening, harrassing and intimidating collection procedures. For instance, the State Statute prohibits a collection agent from (a) threatening to communicate with your employer prior to that agent obtaining a judgement against you, (b) communicating with your family or household at such frequency or at such unusual hours as can reasonably be expected to be abusive or harrassing, or (c) simulating any legal or judicial process or appearing to be authorized, issued or approved by the government or an attorney to collect a debt.
Also, if the collection agent sends you a letter demanding you pay without the reuired notice under the federal law regarding your confidentiality, your rights to dispute the debt an dgiving you the appropriate 30 days to respond, then the debt collector is automatically liable to you for any damages plus three times the amount of your damages. Each violation of the State Statute is a seperate misdemeanor offense. You can file charges with the State Attorney General or your County District Attorney and also request a restraining action against the collection company to stop it from continuing abuse and harrassment.
If you feel abused or harrassed by a collection agency, call that agency and get the name and address of the owner/president. Send your written complaint, by certified mail, return receipt, to the owner/president and include in your letter that you “believe that agency is violating the Federal Fair Debt Collection Practices Act and other state and local laws and that you will (a) file complaints with the Attorney General or the District Attorney’s office (subjecting the collection company to misdemeanor charges) and (b) request a restraining action against the collection agency.” If the collection company continues to abuse and harrass you, then go ahead and file your charges and complaints .
This article is certainly not all inclusive and is intended only as a brief explanation of the legal issue presented. Not all cases are alike and it is strongly recommended that you consult an attorney if you have any questions with respect to any legal matters.
Any questions and/or comments with respect to this topic or any other topic, contact:
Law Offices of Susan Chana Lask
853 Broadway, Suite 1516
New York, NY 10003
(212) 358-5762
Susan Chana Lask, Esq. c 2004
About The Author
Susan Chana Lask is named in the media as New York’s “high powered attorney”. She practices sucessfully all civil, criminal & appeals cases in State & Federal courts nationwide. http://www.appellate-brief.com
scl@appellate-brief.com
Increase In-House Nursing Homes Collections
The following nursing home collections report outlines 11 guidelines you can follow to increase the amount of in-house long term care collections your facility collects.
1] Have A Defined Long Term Care Collection Policy
One of the major causes of delinquent nursing home receivables is that the facility has not clearly defined to its residents/responsible parties and business office staff when the accounts are to be paid. If you are currently ‘playing-it-by-ear’, and have no consistent guidelines for your business office to follow – you are inviting bad debt. These guidelines should be made clear to both your business office and admissions staff. If you consistently apply your collection policy to every nursing home account, you will enjoy a large decrease in delinquent accounts.
2] Educate Residents/Responsible Parties On Your Policy Before Admission
If residents/responsible parties are not educated that their nursing home accounts need to be paid on time – then chances are they’ll pay late or sometimes not at all. Make it crystal clear what day of the month that you bill, and when their payment is expected. Let them know the consequences of non-payment up front – not after they become delinquent. This eliminates potential future misunderstandings from your residents/responsible parties. Statement of your payment policy when payment is overdue is a strong first step in facilitating payment.
3] Invoice Promptly and Bill Regularly
If you don’t have a systematic invoicing and billing system – get one. Many times the resident/ responsible party hasn’t been re-billed or reminded to pay in a timely manner. This situation regularly occurs in homes where there isn’t enough billing staff in your business office, or the staff is spread to thin to invoice or bill on a timely basis. It is amazing how much money is often left uncollected because the resident/ responsible party was never billed or contacted a second time.
4] Keep Accurate And Timely Payment Records
Once a resident is admitted, it is vitally important to maintain accurate and timely records on their payment history. If you see any deviation from past payment patterns, and especially if payments become unusually slow, immediate follow-up is warranted. This not only gives you an early alert to impending payment problems, it also gives you the chance for early intervention if there is an outside influence (i.e. responsible party withholding payment, etc)
5] Contact Past Due Accounts More Frequently
There is no law prohibiting you from contacting a resident/responsible party more than a month. The old adage ‘The squeaky wheel gets the oil’ has a great deal of merit when it comes to collecting delinquent accounts. It is an excellent idea to contact late payers every 14 days. Doing so will enable you to diplomatically remind the resident/responsible party about your terms of payment and give you more chances to discover the real reason why they are late.
6] Develop A Systematic Plan To Follow Up On Past Due Accounts
Determine ahead of time what actions you will take and a defined time frame when the actions will take place. For example, at 15 days delinquent – make a phone call. Your business office can start with a ‘courtesy’ call to make sure the statement was received. At 30 days delinquent – send another statement with a message, “This balance is 30 days delinquent, please remit immediately.” At 45 days your business office can call and make a stronger demand for payment. Having a plan and adhering to it makes both you and your residents/ responsible parties aware of the fact you expect to be paid on a timely basis.
7] Use Your Aging Report – Not Your “Feelings”
Many well meaning business offices have let an nursing home account age beyond the point of ever being collected because they ‘felt’ that the resident/responsible party would eventually pay. While there certainly are a few isolated cases of unusual payment situations, the truth is that if you aren’t being paid, usually someone else is. So stick to your systematic plan of follow up. You’ll soon know who intends to really pay and who does not. You can then take appropriate measures once you know where you stand.
8] Make Sure Your Business Office Is Trained
Even experienced business office members can sometimes become jaded when dealing with debtors. This usually occurs when the residents or responsible parties: have made and broken promises for payment, did not file information at the county office, avoided your attempts to make contact, moved with no forwarding address, or just flat out declared they have no intention of paying. Make sure your business office is firm yet courteous when dealing with the residents/responsible parties. Your business office could benefit from customer service training because they must ’sell’ the residents/responsible parties on the idea that you expect to be paid. Make sure your business office is trained to not only bring the nursing home account current, but to also maintain good will with your residents/responsible parties.
9] Admit And Correct Any Mistakes On Your Part
Sometimes residents/responsible parties do not pay because they feel you have made a mistake. If the basis of the non-payment is a dispute over the quality of care, a mutually agreeable settlement between you and the resident/responsible party should be arrived at promptly. The resident/responsible party may use a minor dispute to withhold substantial payment. Insist that the undisputed portion get paid immediately, indicating the balance will be negotiated. This will not only help to collect payment payment, it shows the resident/responsible party that you are listening to his or her concerns.
10] Use Third Party Nursing Home Collections Intervention Sooner
If you have systematically pursued your delinquent nursing home accounts for 60 to 90 days from the due date, and they still have not paid, you are being delivered a message from your resident/responsible party. If you have implemented a good collections policy, you have requested payment four to six times in the form of statements, letters, phone calls and possibly personal visits. Statistics show that after 90 days, the effect of in-house collection efforts wear of 80%”. That means that the time and resources of your business office should be focused within the first 90 days of delinquency where you have the best chance to collect the delinquent nursing home balances. From that point on, a third party can motivate a resident/responsible party to pay in ways you cannot, because of both the perceived and real consequences of dealing with a collection agency or attorney.
11] Remember That Nobody Collects Every Account
Even by setting up and adhering to a specific long term care collection plan, there are always some accounts that will never bee collected. By identifying these nursing home accounts early your billing staff a great deal of time and money. Even though a few may slip by, you will find that the overall number of slow pay and nonpaying accounts will greatly diminish, and that’s a victory in itself!
Collection Agency Services offers you a wealth of information on how to select the best collection agency for your business.
How To Avoid Medical Collections
With medical collections costing doctors millions upon millions of dollars in unpaid bills and collection fees, many people have just one question: Who are these people who are trying to stiff the doctors who delivered them from great physical pain (or the flu, hypochondria, not-so-white-teeth, or a nose that didn’t look enough like Brad Pitt’s)?
Well, I’m here to tell you who these people are, or at least some of them.
They’re me.
Yes, I admit it: I left a dentist’s bill unpaid for three months.
OK, so dentistry isn’t technically considered “medical,” but it’s the same situation: a doctor left in the lurch.
Why did I do such a horrible thing, especially when I, a small businessperson myself, know how difficult unpaid debts can make cash flow, and how it could very easily make me persona non grata in that office?
Why Medical Collections Happen
Or, Possible Reasons for Me Being a Deadbeat
Here are reasons commonly advanced for why people like me might not pay a doctor’s bill.
They don’t have enough money, plain and simple. After all, if they couldn’t afford insurance, they probably are going to have trouble with the bill.
They don’t care about the poor doctors and either don’t know about or don’t care about the potential for damage to their own credit ratings.
They are chronically lazy, stupid, or just don’t know what they’re doing. OK, the terms used aren’t quite that specific, but that’s the general idea.
All of these possible reasons why a patient might not pay could be pretty discouraging for a practice looking to get the money it’s owed. After all, there’s not much even the best doctor can do about a patient’s poverty, venality, or fecklessness.
But is there really so little hope for collecting on medical debt?
Why Medical Collection Isn’t Necessarily So Hopeless
Or, The Real Reason I Didn’t Pay My Dentist’s Bill
I just signed and mailed a check for my outstanding dentist’s bill. That just goes to show the situation isn’t so hopeless after all, doesn’t it? Here’s at least one case of a healthcare practice getting its money back., and after three months at that .
No, my financial situation did not improve dramatically, nor did my slothful ways correct themselves.
Wondering what the dentist did to make me pay? Plead? Cajole? Shame? Threaten to put the tartar back?
Actually, the dentist didn’t do anything, and that’s the problem.
Here’s what happened: I remembered I had the bill to pay.
I had forgotten ever owing the dentist money. Since I wasn’t expecting the dentist’s bill, unlike all the bills that come every month, it got lost in a pile of credit card offers, appeals to help save trees being cut down to make paper, and news about really great products for writers. The follow-up letter reminding me to pay met a similar fate. It probably didn’t help when I took a trip to Las Vegas and then threw away the junk mail en masse when I got back.
I finally remembered the bill when someone asked me to write an article about medical collections. Sure enough, the follow-up letter (though not the original bill) was there in the pile of newsletters and friendly reminders from various businesses to schedule this or that appointment.
The moral of the story
If you are a patient, make sure to check your mail for letters from the doctor’s office. If you’re running a healthcare practice, follow up with your patients who have outstanding invoicesa phone call is preferable, since it’s less likely to get lost at the bottom of a pile of correspondence.
Don’t have time for that? Worried about the legal issues of collection law compliance? Don’t let that stop you. Go to a company that specializes in medical collections and accounts receivables management for healthcare practices.
It’s not about “putting debts in collection” anymore. Many of these companies offer everything from sending out a few polite phone calls and letters to end-to-end accounts receivable management. None of this has to impact your patients’ credit rating or cost you a fortune.
Your office can go back to healing people. Isn’t that why you got into this business in the first place?
Steve Austin is a regular contributor to Let No
Debt Remain Outstanding (http://www.let-no-debt-remain-outstanding.com/),
a website with articles on choosing a collection
agency, along with recommended the best collection agencies.
Don’t Let Your Small Business Fall in the FDCPA Trap
When someone owes your small business money, you certainly feel like a victim. But did you know that if you aren’t careful, you could break the law by trying to get the money back?
How to Break a Federal Debt Collection Law
You have a small business, and your bills are coming due soon. You could easily pay those bills if a few thousands dollars of overdue invoices were paid. It’s time to give your clients a few friendly reminders:
1] You call up the biggest debtor at his home number. The debtor’s girlfriend answers and you leave the message that you were just calling to remind her husband about the invoice you had sent last month.
2] You get into an argument over the phone with the next debtor. In the heat of the moment, you say you’re referring the debt to you attorney–when in reality, you know you can’t afford to do that.
3]It’s getting late–in fact, it’s already after 9pm. But you know that debtor number 3 tends to stay up quite late, so it’s practically midday for him. So, you cheerfully give him a call and remind him about the invoice of a couple of months ago.
Congratulations, you may have just broken a federal law three separate times. Plus, you could be sued for it.
Collections Laws Finer Points
Have you figured out what collections law you broke yet? It’s the Fair Debt Collections Practice Act (FDCPA), the federal law for collections. Meant to protect consumers from harassment, it has a clear list of things you can’t do. Let’s look at what you did wrong in the last example:
- Never tell someone other than the debtor that you are calling about a bill. You can, of course, leave a message that you called. You can even call someone simply to find out if they know if a hard-to-reach debtor has moved house. But you cannot under any circumstances let on that they owe money. Simply leave your name and phone number as with any other “call me back” telephone message.
-Never claim to be involving an attorney when you are not. Of course, this might seem like a soft area of the law, since intentions are fuzzy. But, for instance, if it’s clear that suing to recover the debt would cost as much as the debt itself, your bluff will be obvious in retrospect. To be on the safe side, don’t ever claim to have involved your lawyer.
-Never call before 8 am or after 9 pm, unless you have the explicit permission of the debtor. But unless that permission is in writing, you’re safer not calling during those hours, anyway. Of course, it’s not strictly this simple.
For instance, the law is only supposed to apply to consumer collections, not business collections. But with home business and telecommuting blurring the line between work and home, you’re better off following the law’s dictates in every case.
Plus, the law has numerous other protections for debtors–or traps for collectors, depending on your point of view. This is just one reason why you might want to outsource your over-aged accounts receivables to a professional service.
If you want to learn Collection
Laws, then visit http://www.debt-collection-laws.com for the latest information on debt
collection laws and collection agency regulation.
Choosing a Marketing Agency
No matter how good your product or the service you are offering is, it will not build up the profile it deserves unless it stands out amongst its competitors in the marketplace. In fact, a good marketing campaign can be such a boon to your business that having the right marketing agency working for you can make all the difference between success and failure. As such, it is worthwhile spending some time reviewing several agencies in order to select one that matches your business needs best. In order to do this it is a good idea to determine exactly what kind of marketing you need. Here are a few areas to consider:
The above points should help you identify which services you want the marketing agency to perform. Inevitably, different agencies will have different strengths and weaknesses, so pay close attention to how much experience they have of the kind of marketing you want done and the amount of success they have had in similar campaigns in the past.
It is always a good idea to keep your eyes open for campaigns that impress you and call up the marketing department of the company to ask who handled their campaign and what it was like working with them. Equally, ask ex-clients of marketing agencies you are particularly interested in what their experience of working with the agency was. Was the agency proactive and did it tailor the campaign to suit specific needs, or was there an impression that the agency provided standard generic solutions to specific problems?
Once you have narrowed your search down to two or three marketing agencies, there are a number of more specific questions to consider:
1. Identify who would be in charge of your account and establish whether the account manager will stay with you for the duration of the campaign or a more junior account manager will take over once the campaign is up and running. Ideally you want to be working with the same team from start to finish.
2. Ascertain how frequently the account manager will give you updates about the progress of the campaign, including the costs incurred and any customer feedback received. Before the campaign even begins make sure that there are no hidden expenses and there is a system in place to determine how the campaign is going.
3. It is a good idea to ask the prospective marketing agency to formulate a trial campaign to determine how well you work together, what procedure the agency follows, how closely it listens to your requirements and how proactive it is. For instance, assess how the agency would handle the possibility of handling specific customer promotions and loyalty schemes that would give your company more personality, or request that they develop a sales strategy for one of your latest products.
Once you have taken the steps outlined in this article you should have a better idea of the kind of marketing agency that is suitable for your kind of campaign. All that remains now is to be diligent when drawing up a contract about what you are getting and what you are not and whether the terms of payment include any performance guarantees. The very best of luck, and heres hoping you choose a marketing agency you can have a long and fruitful partnership with.
This article has been provided by the Approved Index. They have created a directory of Approved Marketing Agencies that are based in the UK. Use their free site to compare and request free quotes for your marketing requirements.
Wyoming Child Support
Wyoming Child Support
Wyoming child support services are available to all single parents who need assistance in establishing child support, and collecting child support payments. Wyoming child support services can assist parents in several ways, for example, establishing a child support order, establishing paternity, enforcing child support payments, and many more.
Before a single parent can establish child support, they must first locate the non-custodial parent and establish paternity. Once a DNA test is done to determine the father, child support orders will be giving to the parent to make timely payments as soon as possible.
When applying for Wyoming child support, single parents who are receiving assistance from the state or federal government will be referred to the Wyoming child support enforcement services. You can contact your local child support office to obtain and fill out an application for services.
You must complete the form and return it with a $25 application fee to your local Wyoming child support office. Try to provide as much information about your child and the non-custodial parent. The reason they ask for as much information on the non-custodial parent is so that it would be easier for them to be located.
When the non-custodial parent is ordered to pay child support and they refuse to pay, the Wyoming child support enforcement office will take action. The child support enforcement office has several actions they will execute in order to collect past due child support for the non-custodial parents.
Some of these actions include reporting the non-custodial parents to the credit bureau, placing liens on private properties or bank accounts, pass port denial, contempt of court, driver’s or professional license revoke, or the interception of the non-custodial parent’s IRS tax refund.
When making payments, the Wyoming child support office prefers withholding the payments from the non-custodial parent’s income. When the payments have been garnished from the non-custodial parent’s income, the payments are then sent to the child support agency to be verified and sent out the single parents.
Click for more info on Wyoming Child Support
Or
Visit the Child Support Laws Home Page
Learn About Commercial Collections Agencies Fees
As with any other service, there are good and bad commercial collection agencies. Beware of any agency that offers you cut rate commissions far below the accepted Commercial Law League rates, offers you kickbacks on commissions, or makes outlandish promises about recovery success.
You should investigate, evaluate and rate the commercial collection agencies that you plan to use just as carefully as you do with customers when you grant credit. Here are some suggestions:
Use Commercial Collection Agencies That Specialize In Commercial Collections
If you consider a nationally known commercial collection agency or network, ask for references within your industry. Call these references to see how satisfied they are with the agencies success rate, and how quickly they remit the funds collected.
If you consider a local commercial collection agency, in addition to checking references, also ask for financial information and the name of their bonding insurer. Check with the insurer to confirm coverage and claim experience.
Check with other credit professionals in your own industry to see what commercial collection agencies they use. Many commercial collection agencies specialize in a particular industry. This can be an advantage because these agencies usually know the debtors, and are familiar with the industry conditions. Many of these agencies also provide adjustment bureau services, where they will provide space, secretarial services, and perhaps even legal counsel for debtors and creditors to attempt out of court settlements.
Using A Commercial Collections Agency
When you turn an account over for collection, make sure you give the commercial collection agency a complete package. This should include:
A Statement Of All Charges
Copies of purchase orders, invoices, proofs of delivery, contracts, etc.
Photocopies of customer’s checks for any partial payments.
Any correspondence sent or received on any of the outstanding items together with any claims of shortages, non-conforming goods, breakage, or returns.
If you have personal or corporate guarantees and/or any security agreements, include copies of these, along with copies of any UCC forms showing the dates filed.
The more back-up detail the agency has, the better it can work for you. If the matter has to go to suit, you would have to provide this information anyway, so you might as well do it at the beginning of the process. If any paperwork is missing, it gives you time to locate it.
Unless there is a good reason for you to become involved (i.e., a return of merchandise or a valid claim which reduces the amount owing, and you issue a credit memo) do not interfere with the process between your customer and the agency. You hired the agency, so let them do their job. Many times a customer will contact you, and try to make a deal so they won’t have to pay collection charges or have their reputation tarnished. The customer may also threaten you with a counter-suit because of a product problem or state that if you press the claim, they will never again do business with you. Stand firm, however, if they do threaten suit, let the collection agency and your own legal department know about it.
Before you place a claim with an agency, you should have determined whether you plan to eventually press for suit and judgment if the agency cannot collect amicably. You do not necessarily have to let the agency know of your decision at this stage, but you should have a plan of action in place.
Dealing With Agencies & Attorneys: Fundamental Terms And Principles
Commercial Collection Agencies Fees
The fees charged for the collection of claims may differ from agency to agency. There are also various types of fee arrangements that may be established.
A “commission” is the compensation payable by a creditor and earned by a receiver for services rendered in effecting collection of a commercial claim. It is normally contingent and computed as a percentage of the sum collected.
A “retainer” is a sum of money paid in advance to retain the services of an attorney and should be taken into account in determining the ultimate fee to be charged for services rendered and results obtained.
A “suit fee” is a fee payable to the receiver, in addition to the commission, for legal services rendered by the receiver for you, involving court action concerning the prosecution of a commercial claim. The “suit fee” is intended to apply to the handling of the litigation, including post-judgment proceedings.
Defense of a counterclaim is considered a separate action, generally handled under a separate fee arrangement. The authorization for suit does not necessarily imply the authorization to defend a counterclaim. A specific authorization and fee arrangement should be discussed at the first hint of a counterclaim.
The amount of the suit fee is a matter of contract between the receiver and the creditor, as is the question of whether the suit fee is to be contingent or non-contingent, or partly contingent and partly non-contingent. A suit fee, if earned, is payable in addition to commissions. It belongs exclusively to the receiver unless there is a division of service and responsibility between the receiver and an attorney forwarder. The suit fee agreement preferably should be entered into before suit is commenced, and the fee should be commensurate with the services rendered, the amount involved, and the results accomplished.
“Court costs” include, but are not limited to: sums required to be deposited for filing an action, fees paid for the service of process and witness fees. You as the client, should first approve other out-of-pocket costs before they are expended. Unless otherwise agreed by you, telephone calls, skip-tracing investigation, postage and expenses for the duplication of material are considered normal office operating expenses absorbed by the receiving attorney. At no time should a receiving attorney incur unusual out-of-pocket expenses without the creditor’s approval.
Claims
Agencies deal with the collection or settlement of claims asserted by one individual or business entity against another. There are two types of claims. A “commercial claim” is an obligation incurred during the course of conducting a business which arises from goods sold or leased, services rendered, or monies loaned for use in the conduct of a business or profession. A “retail” or “consumer claim” is an obligation incurred primarily for a personal, family or household purpose.
Not all commercial accounts are based on open account balances; some claims may be based on lease agreements, security agreements, consignment transactions, guarantees or on almost limitless variations of similar business transactions. It is necessary that the agency be familiar with the available legal means of effecting collection of such specialized types of claims. This requires specialized knowledge of creditors’ rights with respect to perfecting a lien, enforcing a security interest, as well as effecting collection.
Forwarders/Receivers
A “forwarder” is the agent of the creditor who refers claims to attorneys for collection. A forwarder may be an attorney, a commercial collection agency, or a credit insurance company that acts on behalf of the creditor in the referral of claims for collection. The attorney who receives the claim is a “receiver”.
Claims emanating from a forwarder are usually forwarded to an attorney because the debtor is outside of the forwarder’s jurisdiction and the forwarder has been unable to obtain payment. Forwarding is approved by the prior express authorization of the creditor-client for whom the forwarder serves as agent. Thereafter, you, the creditor becomes the client of the attorney. The forwarder, however, continues as agent, to facilitate the handling of the claim between the receiving attorney and the creditor. Because forwarders have certain expertise and are relied upon by the creditors, it is the usual practice that all correspondence and contact by the attorney with the creditor be through the forwarder.
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