It feels great to hold cash in your hand and know that what you’ve got holds true, tangible value. When somebody owes you money, it feels a bit different. Theoretically, you’ve got an asset that holds value, but there are obstacles between you and that income. For as long as money has existed, so has debt. And for as long as debt has existed, so too have people who collect that debt. Debt collection agencies use their expertise on behalf of business owners to resolve debt through using many techniques.
Business transactions based on debt can be mutually beneficial if both parties abide by the terms and timeframe stipulated at the outset. It would be extremely difficult for most people to own a home without a bank willing to front a large amount of cash and accepting payment for it over the course of many years. The debtor gets to own a home and the bank charges a certain level of interest and will ultimately get back more than it spent. Medical debt works similarly.
It’s when one party reneges on the terms of the debt that things get complicated. If your neighbor neglects to pay back the $20 you loaned him when he ran short of cash for gas, it’s easy enough to shrug off. But when you’re a business owner, missing money you are owed can have devastating consequences. A dentist who fixes a tooth does so with the expectation of a mutually agreed upon payment at a future date, whether it comes from her patient or from an insurance company.
When that payment does not come, what recourse does the dentist have? She can’t exactly undo her dental work. Many of those who provide services have faced similar quandaries – you can’t unmop a floor or uncut hair. Many business owners regularly turn to a debt collection agency to recoup money that otherwise would have been lost. Instead of a business owner taking time out of her day to contact debtors and threaten legal action, an attorney backed debt collection agency like the one at Abraham & Kevork can handle the burden of debt collection.
How are Debt Collection Companies Regulated?
Debt collection companies abide by a litany of laws and regulations. An experienced team such as the attorney backed debt collection specialists at Abraham & Kevork know the minutiae and nuances of these regulations and can operate much more efficiently than less experienced teams or a business owner trying to attempt debt themselves.
Debt collection specialists at Abraham & Kevork comply with the Fair Debt Collection Practices Act that is enforced by the U.S. Federal Trade Commission. The Fair Debt Collection Practices Act puts exacting limits on how, when and for how long a debt collection company can pursue a debt. Hiring a debt collection company that is familiar with the Fair Debt Collection Practices Act regulations can save you time, energy and money as well as increase the likelihood that your debt will be successfully recovered.
Abraham & Kevork also sets itself apart by employing representatives who are compliant with the Health Insurance Portability and Accountability Act, and are experts on respecting the privacy of medical patients while collecting debt on behalf of dentists, physicians and other medical professionals who require debt collection services.
How is Debt Collection Performed?
Every debt collection company differs in their specific practices. The debt collection process typically begins with a letter or call to a debtor to establish a line of communication toward getting the debt resolved. If possible, the debt collection specialists will try to reach an agreement that benefits both parties, the client receives payment of debt and the debtor makes a payment he or she can afford. This can be done by creating a payment plan, lowering the amount of the debt or otherwise changing the agreement. Sometimes, it’s not that easy. Debtors can be hard to reach, uncooperative or unable to pay back the debt in any amount. In those cases, litigation or other action may be necessary.
Abraham & Kevork uses a proprietary Collection Pipeline process that keeps debt moving and makes sure the client sees results. The debt collection experts at Abraham & Kevork are attorney backed and can pursue litigation or other measures in the event that debt cannot be negotiated. If you have questions about Abraham & Kevork’s process, call us at 888-788-0093.
