Lenders in Ohio and across the nation have rights when it comes to reclaiming property and money they have loaned to others. In addition to ensuring the terms of the contract are clear and concise, there are a number of methods you can use to recollect items that have not been properly paid for.
While you may not collect the total amount loaned, these methods can help you maximize the total amount recovered on an outstanding loan.
What are some fair methods to reclaim debt?
There are practices you can and cannot legally engage in when collecting a debt, according to the Fair Debt Collection Practices Act. Under the act, you may not use deceptive, abusive or unfair methods to collect unpaid loans, medical bills, credit card debt and other expenses for services rendered. However, there are some methods which you may legally use, including the following:
- Wage garnishment
- Collections companies
- Rent capture
- Property repossession
- Asset litigation
You never want to threaten or intimidate customers, as they may file an unfair practices claim against you. Furthermore the FDCPA restricts you from calling at unreasonable hours of the day and night, repossessing property without the proper legal authority, adding additional interest or fees, pretending to be an attorney,
How can you find the right method for your business?
It is critical to find medium ground when attempting to collect a debt. If your methods are too lenient, you may lose thousands of dollars in revenue for your business. Yet, overly aggressive attempts to collect debt may lead to bad customer relations and ultimately loss of business as well.