Collecting accounts receivable in a timely manner is critical to your business. Efficient businesses are successful in collecting most accounts receivable with internal efforts. However, when major disputes arise or large accounts become delinquent, businesses should consider engaging an attorney to assist with the collection process. The first step is usually to send a demand letter. When sent on a law firm’s letterhead, demand letters convey the message that your business will take legal action if payment is not made. This type of pressure can persuade a debtor to make the required payment without initiating a collection lawsuit. A collection attorney can also make sure your business complies with all legal requirements when attempting to collect a debt. For example, all efforts to collect a consumer debt must comply with the Fair Debt Collection Practices Act (“FDCPA”). Failure to comply with the FDCPA may result in the consumer having a claim against your business. If you have questions regarding best practices for collecting accounts receivable for your business, contact the Business Law Group today and speak to an attorney.
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