Review:
Online Debt Collection

An Affordable Option for Small Businesses

But BEWARE of the Fair Debt Collection Act!

(Note: FTC rules require mention that along with useful information, this site also has links that may lead to the site owner receiving a commission.)

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But some creditors or collection agencies might say the Fair Debt Collections Act (actually known as the Fair Debt Collection Practices Act) forces them to be too "soft" on the people who owe them money.

Some agencies still haven't adjusted, and can get a creditor heavily fined for ignoring the Fair Debt Collection Act guidelines, and using heavy-handed debt collect techniques that are now specifically forbidden.

Important! ...Please note that I offer this review page for information purposes ONLY, and NOT as debt collection advice (for the lender OR the debtor).

Whether you decide to use or not to use any of the information offered here about the Fair Debt Collection Act, or the services of the online debt collection agency reviewed here (OldDebts.com) is strictly your decision.

It is also your responsibility to know ALL of the STATE fair debt collection laws and FEDERAL fair debt collection laws before choosing your debt collection techniques and strategies.

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For instance - The Fair Debt Collection Act says that if you or the collection agency you are using receive a written letter from your debtor requesting that you stop phone calls, letters or other contact with that debtor, you must do so (or be subject to a counter-lawsuit from the debtor from which you could be fined $1000 per occurrence!) - unless it is to inform the debtor that you have initiated a lawsuit or wish to settle the debt.

Here are some VERY helpful Fair Debt Collection Act links which discuss the legalities of traditional and online debt collection:

- FTC's Official Guidelines of Fair Debt Collection Facts for Consumers

- Fair Debt Collection Act Guidelines for Businesses (article)

- (VIDEO) "The Right Way and the Wrong Way to Collect Bad Debt" (AllBusiness.com 3 Minute Video)

Offering Credit to Customers ...Good Idea or Bad?

One smart way to extend credit is to require an application for credit first, and check the customer's credit history. Another, less recommended way, is to extend credit to long standing and trusted customers (rewarding their lengthy association with you by saying "I'll just put it on your bill").

But sometimes these credit policies can backfire.

Some of your individual or business customers can find that they've simply over-extended themselves one month, and so they aren't able to pay according to the terms you've clearly set forth. Maybe they correct the situation quickly, maybe they don't. Hopefully all it takes is a "friendly reminder" letter from your office that the bill is past due. If they contact you and explain their situation, maybe you'll be willing to work with them to get the matter straightened out.

Sometimes, though, it takes more.

If you own a small business, paying a large fee to a heavy handed debt collection agency may not be very appealing. Afterall, you don't want to shell out a bunch of money to be viewed as a jerk, but you DO have every right to want to be PAID. And experts will tell you that you need to start reminding past-due customers sooner rather than later (following Fair Debt Collection Act guidelines), because as time goes by you are less likely to get paid.


But what if it can be a fairly simple fix from an otherwise responsible customer?

Well, Now There is a KINDER (to start), Inexpensive, Online Debt Collection Option.

You select the number of debt collection letters you want to be sent. The seriousness of tone grows with each succeeding letter, until finally you can indicate your staunchness by having the agency letters state that the collection agency will be forced to report the debtor to the various credit bureaus, negatively effecting the customer's all-important credit rating. (And You Can Instruct OldDebts.com to file a credit bureau report against the debtor for a small fee).

(Note - by law you must INTEND to carry out any action stated in your letters. Idle threats go against the Fair Debt Collection Act, as are MENACING actions or threats).

As a last resort, your online debt collections letters from OldDebts.com can state that a lawsuit could be forthcoming without immediate payment from the delinquent customer. You can even pay a small fee to have an experienced collector at OldDebts.com online debt collection agency make an often effective followup phone call to the debtor after the first debt collections letter is mailed (as long as, under the Fair Debt Collection Act, you have not received a letter from the debtor asking that you NOT contact him).

Debt Settlement vs Bankruptcy

Implications for the Debtor ...If you are hugely in debt and thinking about bankruptcy - know that this should be your VERY LAST resort. The new bankruptcy laws will screw with your life for up to 10 years. I would urge you to CONSIDER DEBT SETTLEMENT. You may be extremely interested in my related web page that offers a review of an excellent DEBT NEGOTIATION COMPANY. This company has been a Better Business Bureau Member in Good Standing since joining in 2001. The company also has 10,000 clients and manages $100 million in consumer and business owner debt EVERY YEAR.

- Click Here if you are drowning in debt and in need of serious help with your business or personal debt matters.


Implications for the Creditor Debt Settlement means that you will at least retrieve some of the money you are owed. If the debtor files for bankruptcy, you may not see any of it, so you may have to settle before that happens. If you are owed enough to make it worth the cost, you may want a lawyer to figure out whether you should settle or not. If you are a small business with a limited budget, or the amount you are owed is relatively negligible compared to the costs to retrieve it, your only option may be to begin the inexpensive online debt collection process described above - or settle.

Full Service Debt Collection Strategies for the STUBBORN Debtor