• 15
  • June
    2011

With the economic situation in Georgia and across the country continuously complex and difficult, an increasing amount of consumers and borrowers are falling behind. This leaves businesses in a tough spot. Although they are entitled to the money that is owed to them, collecting that money is often a difficult task.

Commercial collections are a necessary part of every business. However, debt collection is heavily regulated and businesses seeking to enforce a debt must comply with a myriad of complex state and federal laws. The federal Fair Debt Collection Practices Act (FDCPA) is among the most important laws that affect debt collection today.

In fact, it is estimated that more than 1,200 lawsuits against debt collectors alleging violations of the FDCPA were filed in the month of May alone. Through May, approximately 5,900 lawsuits have been filed against different collection agencies and creditors in 2011. These lawsuits alleged more than 4,900 FDCPA violations, 543 Telephone Consumer Protection Act violations and 516 violations of the Fair Credit Reporting Act.

Although businesses have every right to the money that customers and borrowers owe them, it is all too easy for a business to make a mistake when it tries to take collection matters into its own hands. These mistakes can prove costly because debt collection laws can be strictly enforced against businesses.

When collecting on a debt, it is important to work with an experienced professional who is well versed in the laws that govern debt collection. If you have questions about the laws on debt collection or you need help enforcing a debt that is owed to your business, experienced commercial collections attorneys are available to help.

Source: Collections & Credit Risk, "Lawsuits Against Agencies, Creditors Spike," Darren Waggoner, 6/15/2011