How to Collect Money from Clients Who Won’t Pay: A Guide
Summary
Getting a client to set up an automated payment plan is one of the surest methods for how to collect money confidently and reliably. In many cases, when a client is unreachable or adamantly refusing to pay, it is common to hire a collection agency. Just be aware, if you do decide to go this route, that individuals and agencies falling under the legal classification of “debt collector” according to the CFPB, are beholden to far stricter rules about debt-collection practices than you are as the original creditor. • Any text messages or emails they send must provide actual notice of the debt in a “reasonably expected” manner and in a format the debtor may retain and access at any time. Other advantages of arbitration over the courts for collecting money include that it is generally faster, cheaper, and more informal.
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