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Question
An attorney contacted me to collect on a year old past due amount. I told them
that I would contact the company, to verify the validity. The attorney informed
me that once a firm turns their receivables over to an attorney, by law, I can not
deal with anyone regarding the matter except the attorney. I live in California.
Sean,
Most companies or creditors will not talk with you once they have placed the account with an agency or an attorney, which is why they placed it with a company to collect for them or the attorney. Normally, if a debtor calls a creditor after they have been contacted by the attorney or an agency the creditor will refer you back to the attorney or agency. Otherwise the agency or attorney cannot do their job effectively.
Business owners and attorney's, agency owners, and anyone who has to deal with bad debt feels that it the bill got to a point that they had to place it with an attorney, they want the attorney to deal with it, the time for them to deal with the debtor has long passed and they have moved on to other things.
Once you received the first letter from the attorney, (and you can still do this if 30 days have not passed since then) you would ask the attorney for the verification of the debt and they will send it to you. This is required by law. If you do not ask for verification from the attorney within 30 days, the law states that the debt is then considered valid since you did not respond, and can be collected upon in any legal manner necessary.
Good luck!
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Answers by Expert:
Michelle Dunn
Expertise
As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.
Experience
I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com
Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.
Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.
Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.
Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.
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