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Bill Collector Lawsuits

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What Is a Bill Collector?

A bill collector is a professional who is trained to collect bills and debts on behalf of a business. This person may work directly for the business, or they may be hired from an outside source. Usually, the person will be familiar with the type of business they are representing, as well as the nature of the debts involved.

Bill collection efforts are common for small businesses and start-ups. Many small businesses do a lot of networking in the beginning of their business operations, some of which are based on informal debt arrangements. Once the business gets going, the business may need to collect debt from parties they have lent to, and vice-versa.

Are There Any Advantages and Disadvantages to Using a Bill Collector?

Hiring a bill collector can be beneficial because bill collectors specialize in collecting on bills and debts from persons who owe them. This can be helpful especially in situations where a small business owner doesn’t have the skills or experience when it comes to debt collections. Hiring a bill collector can save the business owner much time when it comes to collecting on debt.

On the other hand, a major disadvantage of hiring a bill collector is that they may often charge a fee or percentage based on the amount collected. This may be negotiable but it is a factor to consider. Another point is that bill collectors can sometimes violate the law by engaging in unethical debt collection practices.

For instance, if the bill collector violates the person’s privacy rights by using or selling their confidential information, they could be held liable. Normally, the party that hired the bill collector won’t be held liable for the bill collector’s actions unless they specifically authorized them to act in such a way. In fact, the business owner may sometimes end up suing the bill collector if their conduct has caused them additional losses.

What If I Am Still Owed Debt?

In some cases, filing a lawsuit may be necessary if the bill collector is unsuccessful in collecting the debts. This will help enforce the terms of the loan or the contract; in some cases, the court might impose a lien on the debtor’s property as a means of payment for the debt. In some cases, filing a lawsuit from the beginning might actually be more cost-effective and less time-consuming than debt collection efforts. This can also save costs on bill collector fees as well.

Do I Need a Lawyer for Help with Bill Collector Lawsuits?

Bill collection is an essential part of running and maintaining a business. You may need to hire a lawyer if you need help filing a legal claim due to bill collection issues. Your attorney can help explain your rights in terms of creditor/debtor laws. Each state may have different laws, but a qualified lawyer near you can help research the laws for you.

Photo of page author Jose Rivera

, LegalMatch Legal Writer

Last Modified: 04-14-2015 01:46 PM PDT

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