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Effective Debt Collection Strategies: Tips for Creditors

 Posted on September 25, 2023 in Debt Collection

IL debt lawyerDebt collection can be a challenging and time-consuming process for creditors. However, with the right strategies in place, creditors can increase their chances of recovering outstanding debts efficiently and effectively. If you represent a bank, finance company, credit union, auto lender, equipment lender, or truck lender, our debt collection lawyers are ready to help you. As legal professionals, your debt collection attorneys will enable you to explore some essential tips to help you improve your debt collection efforts as a creditor.

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What a Bank Collection Attorney Can Do for You

 Posted on September 11, 2023 in Bank Collections

IL collection attorneyWhen it comes to recovering debt, banks often turn to collection attorneys for their knowledge and guidance. These legal professionals are equipped to navigate the complex world of debt collection, ensuring banks can recover outstanding loans efficiently. Whether you are representing a bank or some other form of lending institution, lawyers are ready to assist you in pursuing your legal goals. 

Experienced in Law

Bank collection attorneys possess a deep understanding of the legal framework surrounding Illinois debt collection. They are well-versed in the intricacies of relevant laws, regulations, and procedures, enabling them to provide accurate advice and representation. If you are a bank or financial institution seeking to recover funds, a collection attorney can guide you through the process, ensuring compliance and maximizing your chances of success.

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Common Mistakes Creditors Make When Collecting Debts

 Posted on August 30, 2023 in Debt Collection

Chicago, IL debt collection lawyerWhen it comes to debt collection, creditors may face a number of challenges. Recovering debts can be a complex and time-consuming process, requiring careful navigation of legal guidelines and effective communication with debtors. However, many creditors make mistakes that can hinder their chances of successful debt recovery. By understanding these pitfalls, creditors can improve their chances of collecting outstanding debts. A skilled debt collection attorney can provide guidance in these matters, ensuring that creditors comply with all legal requirements.

Failing to Send Written Notice

One major mistake creditors often commit is neglecting to send a written notice to the debtor regarding overdue payments or unpaid balances. According to the Fair Debt Collection Practices Act (FDCPA), it is mandatory for lenders or collectors to provide written notice within five days after initial contact with the debtor.

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How Can Mediation Help Creditors Resolve Debt Collection Disputes?

 Posted on August 17, 2023 in Debt Collection

Chicago debt collection lawyerCreditors often face challenges when it comes to collecting outstanding debts. As a creditor, you may have experienced difficulties when trying to recover money owed to you from borrowers who default on their payment obligations. When traditional methods such as debt collection agencies or legal action prove ineffective or costly, mediation can provide an alternative approach to resolving debt collection disputes.

The Benefits of Using Mediation to Address Debt-Related Issues

Mediation offers several advantages for creditors when it comes to resolving debt collection disputes, including:

  • Cost-effectiveness: Mediating a dispute is often less costly than pursuing litigation through the courts. By reducing legal fees and associated expenses, creditors can make the process of recovering debts more efficient.

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7 Steps Creditors Must Take to Avoid Violating the Rights of Debtors

 Posted on July 31, 2023 in Debt Collection

Illinois Debt Collection AttorneysWhen it comes to collecting debts, creditors have certain rights and responsibilities. However, creditors must understand that debtors also have rights that must be respected. Violating the rights of debtors can lead to legal consequences, as well as damage to the reputation of the creditor. To avoid these issues, creditors should follow these steps:

1. Understand the Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets guidelines that creditors must follow when collecting debts from consumers. Creditors will need to familiarize themselves with the provisions of the FDCPA to ensure compliance. The act prohibits creditors from engaging in harassment of debtors, making false or misleading statements, and or using other unfair practices.

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Bank of America Ordered to Pay Millions of Dollars for Illegal Practices

 Posted on July 17, 2023 in Debt Collection

Illinois Bank Collections LawyersBanks and financial institutions often face scrutiny of their business practices. Since the financial crisis of 2008, multiple banks have been accused of engaging in illegal practices, and government agencies such as the Consumer Financial Protection Bureau (CFPB) may impose fines and other penalties against institutions that have taken actions to cause financial harm to customers. Bank of America, the second-largest bank in the United States, is one of the latest institutions to face these issues, and it was recently ordered to pay $250 million in fines, penalties, and customer refunds after investigators found that it had taken a number of illegal actions. To prevent similar penalties, banks will need to make sure they are following the correct practices when collecting debts or performing other types of transactions.

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3 Strategies for Finding a Car You Must Repossess

 Posted on June 30, 2023 in Asset Recovery

Chicago Repossession AttorneyMost auto lenders would prefer it if every buyer simply made their payments on time, every time - or at least were able to catch up with their past-due bills. However, the fact is that some borrowers become so far behind on their payments that repossession becomes a creditor’s best option for recovering what is owed to them. While there are some legal concerns to be addressed before beginning the repossession process, one of the more challenging parts may be locating the car itself. Some borrowers do not give an accurate address, while others move without updating their address. This can make it a bit difficult for repossession workers to carry out their job duties. Before you repossess a car, it is best to speak with an attorney who can ensure that the process is completed according to legal standards in Illinois. 

Tips for Locating Cars You Must Repossess

Most repossession workers begin looking for a car by checking the borrower’s home, often in the evening or on a weekend day. However, even when the car is found there, there is a high risk of the borrower noticing the tow truck and causing problems. If the car is not at the borrower’s home, some strategies for locating the vehicle include: 

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How Should a Creditor Respond to a Proposed Chapter 13 Repayment Plan?

 Posted on June 16, 2023 in Debt Collection

Chicago Creditor Representation LawyersCreditors need to be able to recover the money owed to them by debtors. Unfortunately, when a debtor files for bankruptcy, a creditor may not be able to recover the full amount owed. However, creditors may receive some payments during the bankruptcy process, and the amount they can receive will depend on the type ofbankruptcy filed. In a Chapter 13 bankruptcy, a debtor will propose a repayment plan in which they will make ongoing payments over a period of three to five years, and these payments will be distributed among their creditors by the bankruptcy trustee. In these situations, creditors will need to understand how to respond to a debtor's proposed repayment plan and the steps they can take to protect their financial interests.

Steps Creditors Should Follow During a Chapter 13 Bankruptcy

  1. Read and review theproposed plan thoroughly - It is important for a creditor to examine the proposed Chapter 13 repayment plan carefully. The repayment plan should include detailed information about how much the debtor will pay, how frequently they will do so, and the duration of the plan. A creditor should ensure that the proposed plan complies with the rules and regulations governing Chapter 13 bankruptcy while also ensuring that the plan is accurate and realistic based on the debtor's income and expenses.

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When Can Creditors Use Lift Stay Motions in Bankruptcy Cases?

 Posted on May 30, 2023 in Bankruptcy

b2ap3_thumbnail_shutterstock_1018623748-1-min-1.jpgWhen a person or business files for bankruptcy, an automatic stay is imposed to protect their finances and ensure that they will not experience additional losses due to creditors' attempts to collect debts. While the automatic stay is in effect, creditors are not allowed to make any collection efforts, including calling or otherwise contacting a debtor, sending bills or notices, filing lawsuits, collecting judgments, foreclosing on a home or other real estate property, or repossessing a vehicle or equipment. However, there are some situations where creditors may believe that they could experience significant losses due to actions taken by debtors during the bankruptcy process, and they may be able to file a motion to lift the automatic stay, giving them the ability to collect what is owed to them. It is important for creditors to understand how lift-stay motions are handled in bankruptcy cases.

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UPDATE: Using Non-Wage Garnishment to Collect Debt

 Posted on May 15, 2023 in Debt Collection

Using Non-Wage Garnishment to Collect DebtsOriginally published: April 19, 2017 -- Updated: May 15, 2023

Update: As described below, there are options available for creditors who need to collect debts from debtors who have limited income that may be recovered through wage garnishment. However, it is important to understand what limits may apply to the amounts that can be garnished from a debtor’s wages. This may help creditors determine what avenues to pursue when collecting debts following a legal judgment against a debtor.

Illinois law states that one of the following methods may be used to determine the amount that can be deducted from a debtor’s wages:

  • Multiply a person’s gross weekly wages by 15 percent. This is usually the maximum amount that may be garnished from a person’s wages.

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