Debt collection is something that many businesses will have to deal with at some point or another. However, when it comes to this task, you need to ensure you are aware of the unfair debt collection practices that are often used by companies.
Learning about these can protect yourself and also ensure you aren’t subjecting other people to these practices. Keep reading as we share some of the best unfair debt collection examples or discover more about our debt collection services
What is Unfair Debt Collection?
Before we go any further, it’s important to think about what is considered to be unfair debt collection in the first place. When you aggressively push someone to make a payment, this is typically considered to be unfair. However, you may just be following up when someone hasn’t paid on time, which as a business owner, you have every right to do. Depending on how someone takes it, any practice could be seen as unfair. There are many different violations which can be considered unfair and illegal, which is why you need to be aware of these to avoid even mistakenly carrying out any of these actions.
Examples of Unfair Debt Collection
These are some of the top examples of unfair debt collection. No business should need to resort to them in order to get their outstanding payments. Our team will be here to support you if you find yourself in a difficult situation when collecting payments.
Collecting Payments That Were Not Previously Agreed Upon
One of the top examples of unfair debt collection is when you collect a payment that wasn’t agreed on prior to you working together. This could include interest, charges, fees and expenses, all of which you might try to spring on the customer all of a sudden. Another similar situation to this is when someone tries to collect debt from you even though you know you have already paid for this product or service. Even with a proof of payment, such as a credit card statement, they might try to push you to pay again. Remember, many unfair debt collection practices are also illegal, so you want to report these companies as soon as possible if you find yourself a victim of this type of action.
Threatening to Deposit a Post-dated Payment
When working with clients to settle payments, you may agree to taking a payment on a future date to help them out. This is a good practice to follow if someone is really struggling with paying you on time, but you should never take advantage of them providing you with any payment details. If they agreed to pay you by the 10th of the month, never push through the payment earlier than this. A debt recovery agency will never put a payment through early, as it could bounce back and cause a huge number of financial issues with the other party. You need to be considerate of other people at all times, as you never know what hardship they are currently going through and how your flexibility and support could help them out.
Threatening Customers About Late Payment
When creating invoices, you need to ensure you put down your terms of payment very clearly. If you don’t do this early on, you leave yourself in a position where you may struggle to communicate with your customers later on. No matter what situation you find yourself in, never resort to using threatening language in any form of communication. This includes phone calls, emails, and letters, all of which can be kept or recorded for future reference.
Even if you are extremely frustrated with the customer, you need to remain professional at all times. Debt collection services can help you with this difficult task if you and your team are struggling to obtain payment from a customer. Don’t feel like you have to suffer alone if you are struggling with your bills as well, and instead, outsource this work to a company that is experienced with dealing with these issues.
These are just a few of the best examples of unfair collection practices. We know how aggravating it can be to not be paid on time, but you need to remain calm and professional at all times no matter what you are dealing with. If you are currently struggling to get payment from anyone, we recommend reaching out to our team. We’ll be happy to answer any questions you have on the topic and work with you to avoid resorting to unfair collection practices. We’ve seen every scenario possible over the years, but with our experience and expertise, we’ll do all we can to help your business grow and succeed this year. Contact us now for more information or to discuss any questions you have on the topic covered here today.