Using Collection Attorneys from Every State for Commercial Collections
Collection attorneys from every state are being brought in earlier and more frequently in commercial collection efforts. Here’s why:
A Growing Trend
A lot of companies are starting to catch on to the fact that it is often faster and more efficient to send claims to an attorney rather than a general collection business. They have come to realize that a lot of accounts the agencies can’t collect just end up being forwarded to attorneys anyway. It just takes longer to go through the agency. This also creates missed opportunities, which can be costly.
The key is to find and use a collection lawyer with skills and experience in collecting without having to file suit. There are a handful of these “hybrid” firms staffed with both licensed attorneys and excellent debt collectors. That’s why we’re starting to see more collection attorneys from every state.
Collection Agency, Attorney, or Both?
It makes sense to hire an attorney for larger balances, say over $10,000 while using a collection agency for smaller balance problem accounts. One benefit of such an arrangement is that if the debtor hears from an attorney right away, they will take it more seriously than if they hear from a traditional collection company.
Advantages of using Experienced Collections Attorneys from every State
There is also a tremendous advantage to using one of these specialists as opposed to hiring your corporate attorney or outside counsel to file suit right away. Under this scenario, it’s likely that due to missed opportunities your result will be a subsequent costly and drawn out legal process, followed by a judgment which may be uncollectible.
This new breed of collectors has an advantage over litigation attorneys who simply file suit right away. These aggressive collection lawyers have collection expertise, so they will first cover every collections avenue possible and can often get payment without the expense and time delay of a lawsuit.
Necessary Innovation
Today’s debtors are far more crafty and savvy than ever before. This evolution is making a tough job even tougher for creditors in all industries. In response it makes sense for creditors to implement a more aggressive approach to combat delinquencies by using debt collection attorneys at the pre-litigation level. Collection attorneys stack the odds in your favor by combining the impact and knowledge of an attorney with the various skills and resources of a seasoned debt collector. Recoveries of large balance accounts can be increased to over 70% compared to the collection agency average of 28%.
If you would like to learn more about collection attorneys from every state, or to speak with an experienced pre-litigation attorney in regards to debt collection, contact Ben Ricci with Stevens & Ricci at 888-722-1611.