2013년 11월 29일 금요일

About 'debt collecting'|...money, and they are sure they have not passed my details in to a debt collection agency, its a pretty bold scam. I am not sure where they have got my details...







About 'debt collecting'|...money, and they are sure they have not passed my details in to a debt collection agency, its a pretty bold scam. I am not sure where they have got my details...








"By               failing               to               prepare               you               are               preparing               to               fail."               --               Ben               Franklin               The               things               you               do               before               opening               a               customer's               account               will               greatly               determine               your               later               success               in               collecting               the               account.

You               should               get               information               up               front               that               will               allow               you               to               find               your               customer               later               if               you               need               to               pursue               him               for               payment.

Your               contract               should               fully               state               the               agreement               between               the               parties               so               that               there               is               no               misunderstanding.

Nothing               should               be               assumed               or               taken               for               granted.
               Caveat.

The               author               is               an               attorney               in               the               state               of               Kentucky.

The               information               contained               herein               may               differ               from               jurisdiction               to               jurisdiction.

By               providing               this               information,               the               author               does               not               intend               to               create               an               attorney-client               relationship               with               the               reader.

The               following               is               not               legal               or               financial               advice.

If               you               have               legal               questions               about               any               of               the               material               presented               below,               please               contact               an               attorney               in               your               jurisdiction.
               The               Story               of               Good               Ol'               Jimmy
               You               own               a               widget               store               in               town.

Over               the               years,               you               get               to               know               good               ol'               Jimmy,               a               widget               enthusiast               from               the               neighborhood.

He               comes               into               your               shop               about               twice               a               week,               usually               to               window               shop,               but               sometimes               to               buy               spare               parts               to               fix               up               his               widgets.

He               seems               very               knowledgeable,               and               you               usually               get               into               some               interesting               conversations               when               he               comes               in.
               One               day,               Jimmy               decides               that               he               wants               to               buy               a               new               widget.

However,               he's               tight               on               money.

He               asks               you               if               you               would               consider               taking               $50.00               a               month               until               paid               in               full.

You               normally               wouldn't,               but               this               is               good               ol'               Jimmy.

You               think               of               him               as               a               friend.

If               you               tell               him               no,               it               might               make               things               awkward               between               the               two               of               you.

So               you               shake               hands               and               agree               to               the               deal.

He               leaves               the               store               with               your               widget,               and               you               put               his               first               $50.00               into               your               cash               register.

We               all               know               what               happens               next.
               Jimmy               eventually               stops               paying.

Not               only               that,               but               he               starts               to               make               himself               scarce.

He               doesn't               come               into               the               shop               anymore.

You               don't               see               him               around               the               neighborhood.

He               disappears.

You               pull               the               ledger               sheet               on               which               you               are               recording               his               payments.

On               the               top               you               have               printed               "Good               Ol'               Jimmy".

Nothing               else.

You               realize               you               don't               know               anything               about               him.

You               don't               have               his               address,               telephone               number,               or               even               his               last               name.

How               are               you               going               to               find               him               to               collect               on               the               account?
               Customer               Intake
               Whenever               you               open               a               new               account,               you               should               gather               information               necessary               to               identify               your               customer,               and               to               locate               him               in               case               of               default.

You               should               be               in               the               habit               of               having               your               client               fill               out               a               customer               intake               form.

For               large               accounts,               this               may               be               incorporated               into               a               credit               application.
               A               good               customer               intake               form               will               give               you               all               of               the               information               you               need               to               be               able               to               collect               on               a               defaulted               account.

Of               course               you               will               want               the               name,               address               and               telephone               number               of               your               customer               in               order               to               find               him               and               to               contact               him.

You               will               want               other               information               as               well:
               Social               Security               number,               date               of               birth               and               driver's               license               number               for               identification               purposes               and               to               aid               skip               tracing.
               Employer's               name               and               address:               This               information               can               help               you               to               locate               your               customer               if               the               home               address               given               is               no               longer               a               good               address.

It               is               also               helpful               in               determining               how               much               effort               you               want               to               put               into               collecting               the               debt.

If               the               person               lists               that               he               is               unemployed,               or               works               in               a               low-skilled               high-turnover               job,               you               may               not               want               to               incur               the               expense               of               collection               efforts.

If,               on               the               other               hand,               the               customer               states               that               he               has               been               working               for               the               same               employer               for               15               years,               it               might               be               worth               your               time               and               money               to               pursue               collection.

Employer               information               is               also               helpful               if               you               get               a               judgment               in               court               and               you               want               to               file               a               wage               garnishment.


               Other               information               may               be               helpful               as               well.

Through               the               years,               you               will               have               instances               where               you               wish               you               had               other               information               about               your               customer.

Be               sure               to               revise               your               intake               form               when               necessary.
               Don't               Stop               Collecting               Information
               Customer               information               changes               over               time.

Be               sure               to               keep               your               records               up               to               date.

Many               times,               a               customer               will               voluntarily               call               and               tell               you               about               a               change               of               address               or               phone               number.

Other               times,               you               have               to               be               observant.
               •               After               your               customer               calls               you               on               your               telephone,               you               might               double-check               the               number               from               your               telephone's               caller               ID               against               the               telephone               number               in               your               records.

Make               a               note               of               any               additional               numbers.
               •               If               you               client               pays               by               check,               take               a               look               at               it:
               o               If               the               address               is               different               on               the               check,               ask               him               about               the               discrepancy.

Likewise,               check               the               phone               number               on               the               check.
               o               If               the               check               is               drawn               on               someone               else's               account,               find               out               who               that               person               is.

You               may               be               able               to               call               this               person               if               you               end               up               skip-tracing               your               customer.
               o               Make               a               note               of               the               bank               and               the               account               number               stated               on               the               check.

This               information               will               help               if               you               need               to               file               a               bank               garnishment               in               the               future.
               o               Look               at               the               return               address               on               the               envelope.
               •               Listen               for               pertinent               information               during               casual               conversations               with               your               customer:
               o               Are               you               still               working               at               the               Acme               factory?
               o               How's               your               wife?

Marci,               right?
               o               You               still               over               there               on               Main               Street?

Etc.
               EXAMPLE:               One               of               the               first               checks               I               ever               took               as               an               attorney               was               given               to               me               in               front               of               traffic               court               immediately               before               I               defended               a               speeding               ticket.

I               was               happy               to               have               gotten               the               check               in               hand               before               I               had               to               appear               in               the               case.

I               put               the               check               in               my               pocket               without               looking               at               it.

I               deposited               the               check               without               looking               at               the               address               on               it.

Of               course,               the               check               bounced.

I               started               to               look               for               my               client.

I               looked               at               the               address               on               his               returned               check,               and               it               was               a               slip               on               a               boat               dock.

The               address               on               his               check               was               to               a               docked               houseboat.

Of               course               the               boat               wasn't               there               when               I               attempted               to               collect               this               debt!

Always               read               and               take               notice               of               all               information               given               to               you               by               your               client.
               Put               it               in               Writing,               Bub.
               What's               a               piece               of               paper               between               friends,               right?

A               written               contract               is               very               important               in               every               transaction.

It               is               a               clear               statement               of               the               parties'               understandings               at               the               time               of               the               agreement.

It               is               evidence               in               court               of               the               existence               and               the               terms               of               your               agreement.

Having               a               written               agreement               may               give               you               superior               rights               over               an               oral               agreement.

A               written               agreement               also               memorializes               your               deal,               so               that               the               parties               to               an               agreement               don't               have               different               memories               of               what               was               promised               at               the               time               of               agreement.
               Attorney               fees:               Usually               after               a               discussion               about               my               attorney's               fee,               many               of               my               clients               will               say,               "Well,               I               can               recover               those               fees               from               the               debtor,               right?"               Not               always.

In               the               United               States,               with               some               exceptions,               a               victorious               party               to               litigation               has               no               right               to               recover               his               attorney's               fees.

So               even               if               you're               able               to               sue               and               recover               your               money               from               your               debtor,               you               may               lose               a               up               to               a               third               or               more               of               it               to               attorney               fees.

In               order               to               preserve               the               right               to               recover               attorney               fees,               you               should               make               sure               your               agreement               specifies               that               the               debtor               will               pay               the               costs,               including               attorney's               fees,               of               collection               of               the               debt               after               default.
               Interest               Rate:               In               Kentucky,               an               agreement               to               pay               interest               in               excess               of               8%               must               be               in               writing.

KRS               360.010.
               Statute               of               Frauds:               Some               types               of               contracts               must               be               signed               and               in               writing               in               order               to               be               enforceable.

KRS               371.010.
               Using               Attorneys:               Your               contract               is               one               of               the               most               important               basics               in               your               business.

You               should               make               sure               your               contract               does               exactly               what               it's               supposed               to               do,               while               protecting               you               from               liability               and               loss.

You               should               ask               an               attorney               to               draft               your               contract,               or               review               it               to               make               sure               it's               appropriate               for               your               business.

If               you               basically               do               the               same               sort               of               business               transactions,               you               can               create               a               fill-in-the-blanks               contract               to               be               reused               with               every               new               account.

If               your               standard               contract               is               old,               it               wouldn't               hurt               to               get               an               attorney               to               review               it               again.
               Standard               Forms:               There               are               standard               canned               business               forms               available               on               the               Internet               or               at               your               local               office               supply               store.

Sometimes               they               are               pre-printed,               and               other               times               they               are               software               generated.

In               many               cases,               these               are               good               enough               to               use               in               your               business,               but               in               some               instances               I               have               found               that               they               are               not               the               best               contract               to               use.
               Some               forms               attempt               to               be               standardized               so               that               they               can               be               used               in               every               state               in               the               US.

The               problem               is               that               every               state               has               different               laws               to               protect               consumers               or               purchasers.

Therefore,               in               order               to               be               universal,               these               forms               have               to               incorporate               every               state's               consumer               protection               laws               (where               appropriate).

This               could               unnecessarily               water               down               your               contract               or               deprive               you               of               contract               rights               extended               by               your               particular               jurisdiction.
               There               are               other               very               good               legal               form               companies               who               will               prepare               forms               specifically               suited               for               your               jurisdiction.

Just               be               careful.

If               you               use               the               wrong               form,               you               have               nobody               to               blame               but               yourself.
               Personal               Guaranty               of               Payment
               Jasoncorp,               Inc.

Jason               is               an               enterprising               young               man               you               know               from               church.

He               started               his               own               business               to               repair               people's               computers.

He               certainly               seems               organized.

He               filed               his               own               papers               to               incorporate               his               business.

He               comes               into               your               shop               to               buy               widgets               for               his               business.

He               asks               you               if               he               can               buy               them               on               credit               until               his               business               "gets               off               the               ground".

You               remember               how               your               got               stung               by               good               ol'               Jimmy               at               the               beginning               of               this               chapter,               so               you               have               him               sign               an               agreement.

Jason               impresses               you               with               his               professionalism               as               he               signs               on               the               dotted               line,               "Jason               Firefly,               President,               Jasoncorp,               Inc.".
               Jason's               business               never               gets               off               the               ground.

Although               he               is               trying               hard,               he               can't               seem               to               profit               from               his               work.

Finally,               he               agrees               to               take               a               job               with               the               local               school               board               repairing               their               computers.

This               is               a               great               job               for               Jason,               and               he               starts               to               earn               a               lot               of               money               for               a               young               man               his               age.
               Unfortunately,               he               stops               paying               your               bill.

You               are               a               little               miffed               that               he's               drawing               this               nice               paycheck,               but               can't               be               bothered               to               pay               you               back               for               your               widgets.

You               send               him               a               letter               complaining               that               he               hasn't               made               a               payment.

He               sends               you               back               a               very               professional               letter               stating               that               Jasoncorp,               Inc.

owes               you               the               money,               but               Jason               Firefly               does               not.

He               goes               on               to               say               that               Jasoncorp               has               no               assets               and               cannot               pay               your               bill.

It               is               then               that               you               realize               that               you               haven't               made               a               contract               with               Jason               Firefly               at               all;               you've               made               an               agreement               with               Jasoncorp,               Inc.,               a               corporation               whose               headquarters               were               located               in               Jason's               parent's               basement.
               In               situations               like               this,               it               would               have               been               helpful               to               have               Jason               Firefly               sign               a               personal               guaranty               to               pay               the               debt               of               Jasoncorp,               Inc.

Many               of               the               small               corporations,               LLC's               and               partnerships               we               see               have               very               little               capital               behind               them.

The               very               reason               for               organizing               a               business               in               this               way               is               to               limit               the               liability               of               the               owners               of               the               business.

For               that               reason,               many               businesses               tack               on               a               personal               guaranty               on               the               end               of               the               contract               to               protect               themselves.
               Similarly,               the               widget               store               owner               could               have               asked               Jason's               parents               to               sign               a               guaranty               of               payment               if               he               thought               it               was               too               risky               to               depend               on               Jason               to               make               all               of               the               payments               back.

When               you're               dealing               with               small               corporations               or               LLC's               with               one               or               two               owners,               you               should               think               about               adding               a               personal               guaranty               agreement               to               your               contract.
               Conclusion
               The               more               information               you               collect               at               the               time               of               the               agreement,               the               more               successful               you               may               be               if               you               have               to               try               to               collect               the               debt               later.
               A               well               written               contract               needs               to               fit               your               business               like               a               glove.

You               need               the               right               tool               for               the               right               job.






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