Take control of your finances and learn how to respond to a debt collection attorney before you end up in court.

How to Respond to a Debt Collection Attorney

It’s important to respond to any communications and document each step of the process when resolving your outstanding debt through a debt collection attorney.

Because of their involvement in collecting money you owe a creditor, you may be contacted via a phone call or a letter from a debt collection attorney. There are consequences to ignoring communications about an outstanding debt that could affect your income. Here is how to respond to a debt collection attorney.

small business debt collection, debt collection tips in Arkansas

3 Tips for Making Your Small Business’s Debt Collection Process More Efficient

Establishing a collection plan, understanding your customers, and sending consistent, prompt invoices are all processes that can help small businesses speed up the debt collection process.

When you own or run a small business, having a consistent and steady cash flow is critical. When customers do not pay their bills on time, it can be detrimental to your business, as well as stressful and frustrating. Use our debt collection attorney’s best debt collection tips to help your small business secure the money it is owed.

debt collection terminology, debt collection glossary

The Terms a Debt Collection Attorney Uses and What They Mean

The world of debt collections is fraught with unfamiliar terms and phrases. Reading up on common debt collection terminology will help you communicate with your attorney more efficiently.

Businesses often turn to a debt collection attorney to help collect on outstanding accounts receivable. If your business needs help with out-of-control unpaid invoices, do not let unfamiliar terminology paralyze you. This debt collection glossary will help you understand the most important terms and phrases that you and your debt collection attorney may discuss:

Dodd-Frank regulation of debt collections, debt collection laws

How the Dodd-Frank Act Affects Debt Collections

Compliance with the Dodd-Frank federal regulation of debt collections is crucial in ensuring that a business is following the letter of the law when pursuing accounts receivable.

Debt collection practices enacted by those who are trying to collect a debt must follow the regulations outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act or risk noncompliance—a hefty charge because of newly heightened consumer protections.

debt buyers

How Arkansas Legislation Impacts Debt Buyers

Arkansas Creditors Bar Association and McHughes Law Firm helped pass new Arkansas legislation concerning debt buyers. They must now be licensed by Arkansas as debt collectors to legally buy or sell debt in the state.

The Arkansas Supreme Court has ruled that debt buyers are considered a collection agency in the eyes of Arkansas law, and must be licensed by the Arkansas State Board of Collection Agencies.