Struggling with debt collection? In a perfect world, debtors would repay their loans as promised. However, that’s not always the case. For whatever reason, a borrower might default and make it difficult for the lender to recoup their money. But going to court isn’t the first step. Before planning a trial date, here’s what you need to know about your debt collection case.
1. Collections Efforts Sometimes Work
Too many people want to sue delinquent borrowers right away. However, many debtors will repay if you ask. Most people are honest, and sometimes they just forget to pay their bills. So, don’t hesitate to make immediate and aggressive collection efforts—they might just repay you!
Under the Fair Debt Collection Practices Act (FDCPA), you must follow certain protocols when attempting to collect. Ethical collections are a must. Most importantly, lenders aren’t allowed to threaten, harass, or use obscene practices to force debtors to pay. All collection efforts must be just, fair, and factual. The FDCPA also limits when you can attempt to contact the borrower. In other words, don’t try calling the borrower in the middle of the night or on the weekends.
2. Don’t Let a Lawsuit Scare You
After exhausting collection efforts, don’t be shy about filing a lawsuit. Too many people are hesitant to go this route. Why? They worry about burning bridges if they sue. Well, if someone forgoes repaying a loan, they’ve already lit the bridge on fire. Hence, filing a lawsuit may be the only chance you have of getting compensated.
When it comes to representation, it’s always wise to hire an experienced debt collection attorney. Representing yourself only works in the movies. You need a legal team that understands the ins and outs of debt collections. their expertise will ensure you get a fair judgment. If you have a solid paper trail, you might see a resolution faster than you thought possible.
3. Disputes Do Happen
Unfortunately, just because someone owes a debt doesn’t mean they’ll happily open up their wallet to repay it. Some borrowers may even dispute the case. They may claim you changed the terms, falsified repayment records, or misrepresented yourself. But, no matter what they say, a collections attorney will help you seek justice during a trial.
4. A Trial Isn’t Always Necessary
Finally and contrary to what you see on TV, trial by jury isn’t the only way to resolve a debt collections case. Many times, a promissory note is all that’s needed to prove who holds the debt. Promissory notes are legal documents. As a result, the borrower’s signature legally binds them to the agreed-upon terms of the loan—there is no issue of fact for the judge.
Your lawyer may motion for a summary judgment without the necessity of a trial. Instead, they will make a ruling based on the facts presented. Avoiding a trial speeds up the legal process, reduces legal fees, and increases the likelihood of recouping your money.
Owed Money? Trust Your Case with a Debt Collection Attorney
Going to court is sometimes the only answer if a borrower defaults on payments. The legal experts at Howe & Associates streamline the debt collections process. With over 30 years of experience, you can count on us to oversee your case from beginning to end, only stopping once you receive a fair judgment.
Dealing with a defaulted loan? Connect with Howe & Associates online for a free consultation about your debt collection case.