While collection agencies can help recover debt, debt collection law firms can prove themselves more efficient in collecting on consumer credit card debt. With the law on your side, consult a debt collection attorney to learn about other options.
When a consumer stops making payments toward their credit card bills, the credit card issuer will
charge-off the account. After 180 days, the issuer may try to collect the account, or hire a collection agency or local attorney. In most cases, the credit card issuer will
send the customer a billing statement stating that his or her payment is past due. A collection agency or local attorney may even attempt to call the consumer in order to encourage payment of the overdue balance.
If a collection agency or local attorney communicates with a consumer, these communications must comply with federal law (FDCPA). If these attempts are unsuccessful, creditors have the legal right to explore other debt collection options.
Most companies are ill-equipped to handle collection actions on their own. If this is true in your case, you may wonder whether you should hire a third party, such as a collection agency, to handle your delinquent accounts.
Unfortunately, in many cases, collection agencies cannot successfully collect on consumer debts more effectively than your own internal resources. Debt collection attorneys, on the other hand, can utilize the legal system to recovering the amount owed. They have the ability to obtain court judgments that make consumers legally obligated to pay their debts, which increases the likelihood of successful repayment.
A judgment is a court order that reinforces your right to collect a debt. To obtain a judgment, you must file a lawsuit, a legal complaint, against the consumer in civil court and provide evidence of the amount owed. Your attorney will then have that legal complaint served/delivered to the consumer, notifying them of the pending lawsuit. Depending on how the consumer responds, your company may or may not have to take the lawsuit to trial.
After you have obtained a judgment, there are several methods through which you can recover the delinquent amount from the consumer. Collection strategies available to judgment holders include:
- Real Estate Property Liens – Circuit court judgments are automatic liens against any real property the consumer may own in the county where the judgment is filed. If the consumer sells or refinances the property, the lien allows you to prevent the sale of property until the debt is satisfied.
- Wage Garnishments – Wage garnishments allow you to collect the debt over time by deducting a portion of the consumer’s wages directly from his or her paychecks.
- Bank Account Garnishments – Bank account garnishments allow you to recover the debt by seizing funds directly from the consumer’s bank account.
Judgments expire after ten years. However, if the debt remains unpaid and the judgment period is nearly expired, you can apply for renewal of the judgment before its expiration date. Liens placed against real estate in Arkansas are also valid for ten years.
Start Collecting Debt with McHughes Law Firm PLLC
The McHughes Law Firm is well-versed in Arkansas consumer debt collection laws and the local court system. Therefore, we know how to maximize your company’s chances of recovering the credit card debt you are owed. After reviewing your situation, we will begin the debt collection process, and if necessary file lawsuits against consumers in Arkansas who owe you money. After obtaining judgments, we will use them to aggressively seek to recover the amount due by using any or all of the collection options that Arkansas laws support.