Review:
Online Debt Collection

An Affordable Option for Small Businesses Looking to Retrieve
Delinquent Debts...

- Plus My Review of OldDebts.com ...The industry's first online debt collection agency -

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, 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 - by Federal Law, 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 links on the legalities of traditional and online debt collection:

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

- FTC Fair Debt Collecton Guidelines (AllBusiness.com 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?

Part of attracting and building a business (no matter what size) is building relationships with your customers, right? For some types of small business owners (doctors' offices come to mind, for example, due to insurance issues), it makes sense to extend credit to customers, which often builds appreciation, loyalty and return business. But unfortunately, some customers can abuse your trust, and not follow your credit terms.

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, 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.

...For a very small flat fee, you can start a "softer" yet formal online debt collection process for shorter term delinquent customers that need a slightly firmer payment request than normal. A company called OldDebts.com is the very first online debt collection agency, and has plenty of positive press (see their site for national articles) and lets you purchase a series of formal debt collection letters (starting at just $6.95!) which are sent to the debtor's street address that you provide from your records.

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 are against the law, 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.

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

If you exhaust the possibilities offered through OldDebts.com's automated site (that YOU have total control over) or feel that traditional debt collection strategies may work better, then you can request that your files be turned over to OldDebt's parent company, Fidelity Information Corporation. FIC can offer you asset searches, debtor location, collector contact and referrals to collection attorneys in your area. They also can offer other debt collection techniques and methods to pursue stubborn debtors. (Again, make sure you stay within fair debt collection laws).

Explore the OldDebts.com online debt collection services further, as well as the parent company's (FIC) full service options, plus all of the related companies under the FIC umbrella, to see what options and debt collection strategies might be right for you.

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