There are state-specific regulations in place for business credit card collections in Arkansas. Consider hiring a debt collection attorney to navigate the legal process for your business.
Consumer credit card collections in Arkansas allow businesses to take action through wage garnishments, property liens, and bank account garnishments. But what if the debt owed was accrued by a business with several authorized employees contributing to the total balance? Accounts receivable become complicated when there are multiple responsible parties and none of them are connected by name to the debt.
A debt collection attorney can help you—the lender—resolve business credit card collections efficiently and professionally, and help pursue litigation if necessary.
In Arkansas, the more paperwork you have related to someone’s debt, the stronger your case. Part of the debt collection attorney’s process will be working with you to gather all the documentation concerning your debtor:
- Financial Statements
- Original lending terms and conditions
- All card numbers issued to employees
- The signatures of the party that opened the account and all authorized signers
Credit card use implies agreement to the terms and conditions of the line of credit. However, business cards are sometimes tied to a company or corporation responsible for payment, not necessarily to the individual making purchases on the company’s behalf. This can make gathering payment from a business difficult if the business owners have separated their personal and business finances.
The information gathering process will help your debt collection attorney determine the party responsible for paying your accounts receivable. Once responsibility has been determined, your debt collection attorney will send the debtor company a final notice. If there is no response you may have to pursue litigation to recoup the debt.
Filing Suit in Arkansas
If you do decide to pursue a lawsuit, Arkansas law regarding business credit card collections requires that you file affidavits pertaining to the debt that state:
- The lender’s information
- The amount of the debt owed,
- The debtor’s account information and debt history,
- The plaintiff’s affirmation that the amount of the debt owed, and all other details, are correct.
Most business credit card collections litigation ends either with the debtor company settling or a judgment being handed down by the court. A settlement may feel like a loss if it is for less than you are owed, but remember that any payment is better than no payment. Your chances at the most fair settlement amount will be greatly increased with the help of an attorney.
In the case of a judgment, your collection attorney will put together a payment plan based on your debtor’s assets. If the debtor fails to follow the court-mandated payment plan, talk to your debt collection attorney about your enforcement options.
If you are pursuing business credit card collections in Arkansas, contact McHughes Law Firm at 501-376-9131 to schedule a free legal consultation with one of our experienced debt collection attorneys.