When the Account Is Past due - Sending Faxes and Email
If a customer has gone 30 days beyond the due date without paying you (the business owner), it is tempting to send a past-due letter via e-mail. Don¡¯t do this! It¡¯s too easy for your message to fall into the wrong hands-someone other than the debtor-and that¡¯s what is known as third-party notification, which is illegal and unethical. It could cause you all kinds of problems. You are better off sending past due sample collection letters via regular mail. You must do everything you can to keep from embarrassing the debtor publicly by inadvertently information someone else. However, if your invoices and routine reminder phone calls are not getting you anywhere, consider sending some electronic quickies via fax or email.
(Your Letterhead)
(Address Element) (Date)
Dear Mr. John Doe:
I have not heard from you in awhile, and I would welcome the opportunity to talk with you soon. Please call me today. Thanks.
Sincerely,
Creditor Company (or name of business)
____________________________________________________________________________________________________________
(Your Letterhead)
(Address Elements) (Date)
Dear Mr. John Doe:
Telephone tag is no fun! I have been unable to get through to you for some time now, and I really need to talk to you. I will be available from ___________ to ____________ today and tomorrow, and I have left express orders to route your call right through to me.
Sincerely,
Creditor Company (or name of business)
National Debt Collection Laws
According to the official FCC government website (www.fcc.gov), in 2004, the FCC adopted debt collection laws implementing the requirements of the Debt Collection Improvement Act of 1996 (DCIA). Congress enacted the DCIA to strengthen Federal debt collection procedures. The FCC¡¯s new DCIA implementing rules went into effect on June 16, 2004, except for changes relating to the handling of applications and other requests by delinquent debtors, which take effect on October 1, 2004.
The Debt Collection Improvement Act require that entities or individuals doing business with the FCC pay their debts in a timely manner. The rules also explain how entities or individuals are notified of debts owed to the FCC, and how the FCC will collect those debts. The rules provide that if you fail to pay debts owed to the FCC, the debts will be referred to the Department of Treasury for collection. Your failure to pay will be reported to credit reporting agencies, and you will be unable to obtain any licenses or other benefits from the FCC.
The ¡°Red Light Rule¡±
The inability of delinquent debtors to obtain FCC benefits is also known as the ¡°red light rule.¡± The red light rule requires the Commission to withhold action on applications and other requests for benefits when the entity applying for or seeking benefits is delinquent in non-tax debts owed to the Commission, and to dismiss such applications or other request if the delinquency is not resolved. In determining whether an entity is delinquent for purposes of the red light rule, the Commission matches the FCC Registration Number (or FRN) of the applying entity to its database of debts; the applicant¡¯s FRN will be linked to all other FRN¡¯s associated with the same Taxpayer Identification Number (TIN). To obtain an FRN, go to our CORES registration site https://svartifoss2.fcc.gov/cores/CoresHome.html
Checking the Status of Your FCC Account
The Red Light Display System (RLD). The FCC has created a new Red Light Display System (RLD) to enable entities doing business with the FCC to determine if they have any outstanding delinquent debt. The RLD enables you to check the status of your account by individual FRNs, and links other FRNs sharing the same TIN when determining whether there are outstanding delinquent debts. The RLD is now operational at http://www.fcc.gov/redlight/.
Debt Collection Agency Practices
A collection agency representative must not willfully communicate with the consumer or any member of the family so frequently as could reasonably be expected to harass the consumer or their family, or willfully engage in other conduct which can reasonably be expected to annoy, abuse, or harass the consumer or any member of their family. A debt collector cannot repeatedly call a consumer on the telephone. If the consumer gets continuous calls, the consumer has a right to keep track and write down the dates and times for each call. To stop the continous phone calls, a consumer may write and send a letter to the agency, certified mail, return receipt requested, notifying the agency to stop contacting the consumer. Once the letter is received by the agency, a debt collection agency collector is prohibited from contacting the consumer again except to notify the consumer that either contact will stop or that the debt collection agency is pursuing a specific remedy.
A collection agency representative should not orally communicate with a consumer in such a manner as to give the false impression or appearance that the agency is - or is associated with - an attorney. If the debt collector calls or even implies that he is affiliated with an attorney, the consumer has a right to ask the collector to send him/her a letter on the attorney?s stationery according to fair debt collection practices.
Some factors of the Fair Debt Collection Act include that a debt collection agency representative must not communicate or threaten to communicate to anyone credit information about the consumer which he knows or should know is false. If the consumer is disputing the debt, any communication regarding the debt must also include the fact that the consumer is disputing it. If the debt collector talks to or otherwise communicates with anyone about the consumer?s credit, he cannot be law give any information which he knows or should know is incorrect.
Questions for Your Rent Recovery Collection Agency
What costs will I incur from a Rent Recovery Service? What is the difference between contingency based collections and flat fee collections?
Are all collection files reported to the credit bureaus, Experian, TransUnion and Equifax?
How long does it take to get money from the average bad debtor?
If the judgement is older, is it too hard to collect? Is it more expensive?
What if I don?t have a judgment against my tenant? Should I take them to court before or after I find a collection agency?
Trans Union Corporation
According to the official TransUnion website, TransUnion carefully safeguards the credit history of virtually every American consumer.
The existence of each individual's updated credit file makes it possible for businesses to make nearly instantaneous, objective credit and insurance decisions. Processes that formerly took days or weeks may now be completed in minutes without question of personal prejudice or subjective judgment. The TransUnion database also gives consumers more choices. It makes it possible for credit card issuers and other businesses to target their offers so that consumers may shop for the best products and terms. Ready access to reliable information makes the modern consumer economy possible.
The TransUnion credit bureau recognizes that there is a balance between the ready availability of credit information, which benefits consumers, and improper access that can infringe on consumer expectations of privacy. Consumers appreciate the benefits they derive from the consumer credit reporting system, as long as those benefits are not outweighed by the potential harm caused if personal information is used improperly.