Key points of new language preference law for New York debt collectors

The department of consumer and worker protections of New York City has come up with novel regulations. These new rules require the debt collections agency in NYC to give the customers' language preference disclosures. Also, they have to record and request the language preference of the consumer. Under these new rules, a debt collector in New York doesn't have to translate communication.

Here are the key points of this new rule.

1. New written disclosures

The existing laws state that a debt collector who is not working with a creditor has to make written disclosures to the customer. It can either be through the initial written communication, or they have to disclose this within five days of making contact with the debtor.

The new rules change this more in two ways:

The notice now has to include an announcement informing the customer of the availability of any language access service.

It also needs to state that description and translation of common debt collection words will be available on the website of the department in multiple languages. 

2. Recording and requesting language preference

The new rule also makes it impossible for the debt collection firms to start the collection procedures without requesting the language preference from the debtor. They also need to record the preference before they can start collecting.

The problem with this point is that there are no guidelines. So, a collector is not sure what to do if a debtor doesn’t respond to the request. Do they continue asking or start the process after one or two tries?

Although, the department has assured that more updates on this point will be available soon on the site.

3. Disclosures on the website that are public

A debt collection agency in New York operating a public website, which anyone can access has to follow a rule. The law states that the collectors have to disclose everything they state in the initially written communications. 

4. Partial or false translations

If a debt collector is providing translation services, it would be illegal to convey a translation which is incorrect, false, or partial. Since, the rules don’t define ‘translation services’, if a debt collector is providing these services, they have to bear the risks too.

Another thing to remember here is that New York defines collection agencies, debt collectors, and creditors differently. A collector is a person who is working for the creditor to collect the debt, so these rules don’t affect them. But an individual or firm collecting on their own is an agency that needs to follow these new regulations.

What are your thoughts on these new debt collections for New York jurisdiction? What affects will it have on debtors and collectors alike? Share your thoughts below.

How to pay your debt off using the snowball method?

There are times when as a business or individual we are knee-deep in debt, and we want all of it to stop. It is hard to live a peaceful life if you are always borrowing money from someone else to pay to a third-party business/person. It is even hard to keep duck calls from a collection agency like Cedar Financial, knowing full well that ignoring their calls won’t make the debt go away.
It is a massive burden and a never-ending cycle if you avoid your debt now. That is why focusing on paying it off using the ‘snowball’ method is the right way for you to start digging out of this hole.

What is the snowball method?

The snowball method of paying off debt is simple. It focuses on the debtor to start paying the debt that has the smallest amount or lowest rate of interest. This way, you start crossing off names if you have multiple debts, and your credit score can start getting better too. A debt recovery agency will appreciate even the smallest amount, so start with that.

Here are some ways to start snowballing your way out of a debt

1.  Stop thinking you are the only one

There are millions of people globally who are struggling with debt. You are not alone, so don’t think for one second that you are alone. To inspire yourself and find ways, you can start reading blogs that will help you with finances and debt. It will not only give you inspiration about paying the debt off, and you can contact them in person too so that you have someone to talk about.

2.  Make a list of all your debts

When you are dealing with multiple debts, you can sometimes forget to pay a debt, which is due soon. It can make the creditor call a debt collection firm. So, it is better to sort all this so that you don’t make any mistakes or forget any creditor. The best way to do this by making a list, you can use a software or app to make a list, the amount, and the due date and then start paying off starting with the smallest debt. A simple pen and paper will work too.

3.   Stop pit falling

The worst thing you can do for your finances is spending on things you don’t need even when you have multiple debts to pay for. For instance, if you can cook, eating at home is cheaper than buying outside. Otherwise, the take out bills will be too much for you.
Similarly, cut back on anything that you think can help you pay the debt faster and won’t affect your life in a big way. So, that means no cutting back on medicines or stuff.

4.   Have a plan

This method makes you pay the minimum amount for all debts so that they don’t go to collections. While you pay the smallest debt off completely. So, follow this plan and get a side job so that you have more revenue to pay it off.

As a debtor or a creditor, you should know how ethical and reputable debt collection companies work.  Read cedar financial review to know more about their process and other aspects.

Minimize risk of debt collection with these tips

All leading debt collection agencies like Cedar Financial agree that when it comes to debt or credit management, small businesses have weak policies. It is because of the weak methods that they have to deal with tons of debtors and outstanding amounts. No matter how successful you are, or how great your business is running. If you have multiple customers who pay you late or don’t pay at all, you will run into problems. As eventually, you will face a cash crunch which can lead to bankruptcy, closing of the business, or debt.

How to make sure this doesn’t happen? Well, you can have a good credit management policy. A collection firm can help you with creating one. Also, the tops we are discussing below can help you.

1.      A credit check is a must

Before you sign on someone as a client or agree to give products on credit, run their financial history. A credit check will provide you with important details about them. If they have financial discrepancies or have not paid to previous clients too, there will be records or signs. You can also talk to previous clients of the customer or the bank for more information.

2.      Set clear expectations

If you are communicating the wrong message, you will have to face delinquents. Make payment terms clear to your clients or prospects in the starting only. If you don’t, and they pay late, it will partially be your fault. Also, ensure that the clients know that there will be consequences if they don’t pay on time, and make sure these are not empty threats.

3.      Keep regular reviews

You must do monthly reviews and checkups. Reminding the client about payment dates and making sure that they get the bill on time is important if you don’t wish to face collection issues. Make sure that if a client is late in payment even by a day, you should send them a notice. Also, mention that the collection process will start if they don’t pay or reply.

4.      Written policies are the best

It is best to have written policies for payment terms in your contact. This way, there will be no confusion and disagreement. Both parties should agree to the terms and sign the document. Also, both should have a copy. When you have an agreement, it is easier to collect and act in case of non-payment.

5.      Send a demand letter

As a small-scale business, your wish to safeguard relationships with your customer is something we understand. But you also have to think about your business and the people who work for you. Thus, when the clients are not paying even after 90 or 180 days, you must act. You can start by calling them and reminding them about the payment. If that doesn’t work, you need to start sending them a demand letter.

6.      Seek a professional

If your demand letters are falling on deaf ears, it's time to go seek help from a professional. It is best to hire a local debt collection agency so that you can meet them in person. They know the rules and regulations and will help you recover the debt on time.

Never delay action when it comes to debt. Otherwise, it will become too hard to collect even a nominal amount.

Medical debt collection - an overview

Medical emergencies can happen anytime. A patient or their family might not have enough cash at the time of emergencies to pay the hefty medical bills. Moreover, the current demanding work lifestyles have further put people at health risks. This translates to more hospital visits which

Advantages of having International Debt Recovery Agencies

The world markets have become global in its true sense. Even small businesses have the internet to showcase their products and services globally. This enables them to execute a trade with companies in other countries. Since the transactions either happen online or through emails, there are chances that a customer can default on payments. This puts the creditor in trouble because their business has minimum visibility in the debtors’ country for extracting the payment. 

5 things a small business owner can do when a customer doesn't pay

For a small business owner, it is frustrating to deal with a customer who doesn’t want to pay or unable to pay or has simply disappeared after rendering your services. When you provide a service on credit or half payment, you trust the other person to withhold their side of the end and pay you back. When they don’t pay or are late in paying or refuses to pay, it can create a lot of problems for the business owner.

When you should hire a debt collection agency?

The world economy is in a volatile state currently. It is experiencing a slowdown due to some unpleasant world events. Thus, the increase in the number of loans or money defaulters shouldn’t come as a surprise. Collecting dues is not an easy task, especially if you don’t have the right resources to do so. Hiring a collection agency is a good option as you will be saved from the hassles of debt collection. The collection agencies work with the defaulters and help them in paying the due amount. They create a step-by-step plan based on their financial status for easy payment of dues. In this article, we have outlined some reasons why you should send a claim to a collection agency. 

4 tips that can help you collect debt with ease

Debt collection is a form of salesmanship that you must learn. A debt collector is a bridge between a creditor and the delinquent. To recover the debt that a debtor owes to the creditor, you need to be calm. Use persuasion instead of threatening or arguing with the debtor to pay.

5 Myths about debt collection that you need to stop believing now

Most businesses that write-off their debt can save their cash flow, and recover their outstanding amount, if only they agreed to hire a debt collection agency. A debt collector has immense knowledge and techniques to their advantage that helps them in recovering the debt successfully.

But some businesses don’t believe in hiring a debt collector because they believe the old age rumors about a collection agency. Myths like they are aggressive and abusive (not all collectors are, some dishonest collectors have to lead to this myth), and so on. That is why in this blog, we will try to bust these myths.

Myth 1: Debt collection is an expensive process

The reality is that most debt collection agency works on a commission model. They only take a 25%-45% commission from the amount that they have recovered. And if they don’t recover the debt, they don’t take money for it. It is pretty affordable and profitable as compared to you writing the debt-off. Writing off a receivable will probably cost you more loss.

Myth 2: Only big enterprises hire a debt collector

It is completely untrue. A lot of small business owners and startups hire a debt collector too. They help them recover the debt, which leads to increased cash flow. A small business owner has so many responsibilities and limited time and resources. Thus, hiring a third party collector who knows how to collect the outstanding amount is a better option for them.

Myth 3: Going for legal action is better than hiring a collector

Taking legal action against your customers should be the last resort you ever take. It is because it is a time-consuming and expensive process. Also, it can damage your relationship with the customer. Instead, go for a collector as they can help convince the customer to pay without damaging your relationship with them.

Myth 4: My customers won’t prefer their debt in collection

Yes, your customers won’t like that they have debt in collection, but it is only because they refused to pay. Till, you are working within the laws, and work with a collector who understands that maintaining a relationship with your customers is important for you, sending a debt for collection is not wrong. A customer will not like it, but they will understand, especially if the collector helps them pay the debt easily.

Myth 5: Debt collection agencies are best for old debts only

Not true, when debt gets old, it becomes hard to collect it. That is why as soon as your customer goes beyond 90 or 180 days without paying the debt, you should hire a collector. It will help you save time and resources and the percentage of recovering the debt successfully and quickly increases too.

Now that your myths about debt collections are burst, why not hire a reputable collection agency like Cedar Financial to solve your debt problems. Visit their website to know more about their process and hire them.

These signs indicates that you need a debt collector

So, you have launched your startup, congratulations. A startup doesn’t start to make a profit before they complete three years of running. That is why they cannot afford any bad debts or unpaid invoices. When one of your customers doesn’t pay a bill, it can certainly affect your business as it decreases your cash flow.

When it comes to unpaid bills, a startup doesn’t have enough resources or time to chase a debtor to collect the payment. Still, they can try, but when things become worse, it is best to hire a debt collection agency.

Let’s look at five signs that can help you determine whether you need a debt collector or not.

Unpaid bills that are at least 90 days old

If you have any account or outstanding bills that are older than 90 days and the debtor is showing no interest in paying the debt, then it is the correct time to hire a debt recovery agency like Cedar Financial.

Also, a debt collection agency can help you look for an account or identify a customer which can pose a problem or is unlikely to pay the debt. 

If the check of the customer has bounced, they might not pay

If a customer has given you a check and it bounces, it is a sure sign that the customer is not reliable. Especially, if they feign ignorance or don’t return your calls, make sure you move quickly, otherwise, they would leave you hanging.

Another advantage of hiring a debt collector is that they can advise you on how to handle such clients, and even help you figure out people who can do this by researching their credit history.

If you have dealt with more than one delinquent

If in the course of running your business, you have come across more than one customer who has not paid the debt on time, and you had to write them off, it is best to hire a collector. A collector can help you get those outstanding amounts and, also if you faced two or three delinquents, you can face more. And at that time a collector that you know, and have trust in, can help you.

Your debtor is not local

If you are dealing with a debtor who doesn’t live in the same location as yours or has left for a foreign location, you cannot collect the debt from him/her. It is because you are allowed to collect debt internationally, and it will mean spending a lot of resources and money.

But a collector who has a national or international presence can easily recover debt from delinquents living in different cities or regions.

You are not able to track your debtor

Sometimes a debtor goes MIA, and even after contacting every friend or relative of theirs, if you are not able to find the delinquent, opts for a debt collector. They have numerous techniques like skip tracing, which helps them trace the debtor using lots of databases.

If your startup is seeing any such signs, it is best to hire a collection agency.