Receivables Performance Management Reviews Collection Practices to Avoid

Receivables Performance Management Reviews 3 Common Debt Collection Practices to Avoid

In this post, leading accounts receivables management firm Receivables Performance Management reviews common debt collection practices to avoid. These are practices that violate the Fair Debt Collection Practices Act (FDCPA). Receivables Performance Management reviews and shares these common mistakes to help companies that are having difficulty with collecting payments from debtors preserve and maintain goodwill between them and their debtor/s, and likewise maintain their mutually beneficial relationship.>

Employing best practices in debt collection helps companies preserve their reputation, avoiding lawsuits by the debtor for violation of the FDCPA. A long and costly legal battle is the last thing that any company would ever want to find itself embroiled in

Here are the top three common debt collection mistakes to avoid based on Receivables Performance Management reviews:

Repeatedly calling the debtor, harassing and using profane language

By far, this is one of the most common FDCPA violations. Several violations are committed here. First, the repeated calls. Repeated calls are already considered as harassment; add to these the use of profane or obscene language, and this may already be considered a major violation. There is also the time factor to consider, or the times the calls were made. Generally, collectors aren't allowed to call before eight in the morning and after nine in the evening. This is considered harassment as well.

Ask to pay more than what the debtor owes

By law, debt collectors are not allowed to charge extra fees, fines, and other additional expenses on top of the amount owed. Sometimes, these fees are charged under the guise of fines or penalties because of delinquent or non-payment of the debt (fines and fees on top of what the creditor included in the credit agreement). In many cases, the debtor is unaware of such extra charges. In other words, these do not have their approval.

Issue threats

Another way that some collectors "motivate" debtors to pay is to threaten them with legal action.They might threaten to contact their employer which may cost them their jobs, garnish wages, take their property, or ruin their reputation to third-party entities. They also cannot threaten debtors with violence.

At Receivables Performance Management, the goal is to collect payments from debtors in a <em>humane</em> and legal manner, and according to the stipulations of the Fair Debt Collection Practices Act. Companies that are having difficulty collecting payments can rest assured that only the best collection practices will be employed. One such way to help debtors pay the companies for which RPM collects payments is through the free online payment service.

Here, debtors can either pay in full or in increments that they can afford. They can also negotiate to pay less than what they owe and make an offer on monthly installments within a specified timeframe. In the event the debtor is unable to make payments or negotiate, they can use the tools on the <em>UGotiate</em> website to help them resolve their debt over time. The website provides tools that can help them create a payment plan based on what they can afford, as well as a financial tool that can help them save for resolution funds, which they can then use for any of the payment options/negotiations mentioned above.

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