Many companies are unaware that pursuing another company of individual over debts can be fraught with problems if the proper procedures are not adhered to.
If you are in any doubt about the processes you are currently following to recover late payments, make sure you are not making the following mistakes that could land you in trouble with the Financial Conduct Authority (FCA).
- By all means it is worth giving people a call if you are concerned about a late payment. A phone call may be all it takes to remind someone who has forgotten to pay. The problem comes when you make repeated calls to individuals that may be viewed as harassment.
- You may feel like walking into the debtor’s office and physically removing their stuff or threatening them unless they pay. In the 21st century this isn’t possible, you are far more likely to get results if you hire a collection agency or simply go through the proper channels to recover your money.
- Turning to Facebook or Twitter to air your frustrations about debt can also land you in hot water. Again this can be viewed as harassment.
- If the person you are pursuing asks for details of the debt they owe, you must provide them.
- You should never pretend to mislead people by claiming to be from a law firm or a debt collection agency. Doing so is illegal and there will be penalties.
- Claiming that court action is underway is another technique used in an attempt to hurry the person owing money into paying up. This can also backfire if you are in fact lying to the person involved.
- You cannot for the debtor to pay what they owe in full right away, you must allow them to pay you back in instalments or arrange a payment plan.
If you find yourself in a position where you are struggling to recover money owed to you, ask us about our legal collection services.