Proof of your debt collection claim: why it’s important
Many clients approach me about collection claims but they have no supporting documentation to prove their claim. Collection agencies need proof that the debt exists. Simply saying they owe you money is not enough. Debtors can request proof of the claim and collection agencies must provide this proof if asked. There is no way around this fact. My suggestion is to use contracts, applications, leases, rental agreements, rental applications etc. Get your debtors information upfront. Don’t do business with a handshake. This form of a “contract” makes it difficult for the collection agency when the debtor defaults. Be sure to use invoices when billing your customers. Invoices can also be used as proof of your claim. If a client approaches me about handling a claim without proof I normally recommend they take the matter to court. A judge will then make a decision based on the testimony of each party. If a judgment is issued to my client then we can pursue the debtor on the client’s behalf as the matter has been decided in a court of law and makes the debt valid.
March 27th, 2007 at 7:34 am
Jan,
I just ran across your blog, great information here! Keep up the great posts!
Michelle Dunn
www.michelledunn.com
May 31st, 2007 at 1:46 pm
Are you still able to attempt to collect debt if the debtor has hired an attorney or must you deal with the attorney. According to the FDCPA you must deal with the attorney
July 2nd, 2007 at 7:35 pm
If the debtor has legal representation and has made you aware of that, you must cease commuincation with the debtor and deal with the attorney directly per the FDCPA.