When a business or individual decides to engage a third party to recover an outstanding debt they are faced with two main options – choosing a debt recovery lawyer or a mercantile agent.
Choosing the right team to recover your debt from the get-go is an important decision and can mean the difference between a quick, cost-effective recovery and a drawn-out, expensive or successful attempt at recovery.
The following reasons might convince you that you need a lawyer specialising in debt recovery to assist you in recovering debts:
1. The power of a lawyer’s letterhead
More often than not a Letter of Demand that with a law firm’s letterhead is enough to push the debtor to pay the debt. A Letter of Demand from a lawyer’s office lets your debtors know that you are serious about recovering your money, particularly if such letters confirm that you will commence court proceedings to recover the debt.
2. One-Stop-Shop Service
In the event that the debtor does not pay the debt in response to a Letter of Demand it is easier and more cost-effective to escalate the matter into the court using a Law Firm. A good debt recovery law will able to handle the whole debt recovery process in house from start to finish, including commencing court proceedings, entering judgment against your debtor and taking steps to enforce that judgment, without having to refer to matter to a third party, which can delay the recovery of your debt and create additional costs for you.
3. Quality Legal Advice
Debtors will often raise a dispute as a way to try and avoid paying the debt. If your debtor is disputing the debt or you have concerns about the validity of your debt, a qualified debt recovery lawyer can give you legal advice on the strength and validity of your debt before you start incurring costs to recover the same. As experienced legal professionals, debt recovery lawyers can also advise you of the best option in order to recover the debt, helping you identify and assess the matter and the right strategy to collect your money quickly.
4. No Commissions Or Hidden Fees
Lawyers have strict rules in terms of disclosure of their costs and what they can charge and are not allowed to over-charge and charge hidden fees. Most Debt Recovery Lawyers charge fixed rates for their services, most of which are recoverable in addition to the debt, which will mean that you have transparency and certainty in respect to your costs. Lawyers also do not generally charge commissions on the amounts recovered, meaning there is more recovery for you.
5. A Professional Approach
One of the main benefits of using a lawyer to recover your debts is that they handle it professionally. With a lawyer in charge, you don’t need to worry about you or your company getting a bad reputation due to the third party’s ways of collecting money for you. Expect a law firm to negotiate on your behalf in a stern but professional way, without harassing or threatening your debtor.
Consider reviewing the firm’s achievements, years of service in providing a debt recovery and service locations. This will help you decide what Law Firm to use.