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Benefits of Hiring a Chicago Debt Collection Attorney vs. Collection Agency

Posted on in Debt Collection

chicago debt collection lawyerAt one time or another, most businesses will find themselves dealing with a client or customer who – for whatever reason – refuses to pay a bill. No matter what attempts the business makes to collect what is due them, the debtor still will not pay. There are several options a company has at this point, including hiring a collection company or retaining the services of a debt collection attorney.

Given the state and federal laws that have been put in place to protect debtors, it is important for creditors to make the right choice when turning to a third party for assistance.

What Is the Difference Between a Debt Collection Attorney and a Collection Agency?

When deciding which is the best choice, a business needs to determine how far they are willing to go to collect the debt. Is this debt something your company will pursue in civil litigation, if necessary? Although both a collections attorney and a collection agency have the same end goal, there are several critical differences to be aware of on their ability to reach that goal.

A collection agency can be of assistance when it comes to collecting smaller debt amounts. However, they do have limitations in the legal steps they can take to recover the debt. Typically, the agency will repeatedly contact the debtor to try to convince them to pay their bill. Contact methods include telephone, mail, and email. The agency may offer the debtor a payment arrangement option, or they may try to persuade the debtor to pay by offering a reduced total amount owed.

If the debtor still refuses to pay, a collection agency is unable to provide the company with any legal assistance for court action. If the debtor still refuses to pay, your company will then need to retain a debt collection attorney and start the collection process over again.

If your company is committed to pursuing collection activity all the way to court if needed, then the better choice is a debt collection attorney. One benefit of hiring an attorney from the beginning, instead of a collection agency, is that the debtor gets the message right away that the company they owe money to now has legal representation to collect this debt. It is not uncommon that just the hint of potential litigation will convince a debtor that it is in their best interest to pay what they owe.

If that does not convince the delinquent customer to pay, nor do the contact attempts the attorney makes to the debtor, the attorney can immediately initiate legal action against them.

Contact an Illinois Debt Collection Lawyer Today

If you would like to discuss what type of benefits a skilled Chicago, IL debt collection attorney can provide your company, contact Walinski & Associates, P.C. today. Call 312-704-0771 to schedule a confidential consultation.

 

Source:

https://www.businessnewsdaily.com/16048-debt-collection-laws.html

 

Illinois Creditors Bar Association Chicago Bar Association Illinois State Bar Association
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