Expert: Michelle Dunn - 9/11/2007

Question
QUESTION: Hello there Michelle.  I work for an attorney and take care of a collections account with him.  So I know the Legal approach not the "at home" approach.  If you run into a problem of not being able to find a person or can't collect while working from home...do you have an attorney retained for such occasions?  Or do you refer the client to an attorney to go further with the collection process in this case?

ANSWER: Rene,

Are you asking about how to skip trace or locate a debtor if your business is based out of your home? If you are, you would do it the same was as if your business was somewhere else.  You could outsource it to an attorney or a PI. When you say "go further with the collection process in this case" what do you mean?

---------- FOLLOW-UP ----------

QUESTION: Sorry that I didn't make myself clear.  I know about skip tracing etc.  I mean when I come to a stand still where I cannot collect from a person...therefore I can not go any further with this collection.  Should I outsource and retain an attorney for this (to start a legal suit, etc.) or do I just go back to the client and refer them to an attorney that can handle it for them?  Which is actually more efficient time and money wise?  This is the one avenue that has me confused how it should be handled.  Otherwise I think I could start a business right now.  Also one more thing if I may ask...?
I am assuming that collecting on debt is easier than what I see here at work(NSF checks).  We only accept cash or money orders or cashier's checks  These people are habitual bad check writers.  And also hard to find their whereabouts alot of  the time.  But when you accept payments via credit cards, debit cards, checks, money orders, more avenues of payment I would think would get the job done faster.  I mean if someone you are trying to collect from has a credit card and wants to pay it off immediately then this is a good thing.  I am just scared of accepting checks I guess...because I see way too many businesses being taken advantage of with bad check writers.  Did you ever run into much of these bad checks coming your way as payments to you?  Thank you so much for patiently answering any questions you can for me right now.  I want to start a collection business RIGHT NOW because I feel that I have a good base to get started with the experience I have accumulated here at work.  I just have a few things I do not know how to handle quite yet.  THANK YOU again Michelle!

Answer
When you own a collection agency and have worked the account to a point where you do not feel you can collect, you should always go back to the creditor to see what they want to do. If they want you to hire an attorney and pay for that, you would have an agreement with them, or you could give them the name of an attorney if you cannot take the account to court for them. Depending ont he amount due it might be a small claims or civil procedure.
Collecting debt is the same thing as collecting on NSF checks since they are a debt. Are you talking about people writing back checks to your collection agency or to a business?
When I had my agency I did not have many bad checks written to me, but I am not sure if that is what you are asking.