Collecting on an unsecured debt presents unique problems and perhaps more so with credit card collections. As New Jersey debt collection lawyers report, past due payments and non-payments have been on the rise in recent years. Unfortunately, many consumers treat credit cards as a cash reserve and seemingly have little reservation about not paying when finances become tight. However, there are methods available to assist in securing payment.
Understanding the Applicable Regulations
A primary advantage of retaining New Jersey debt collection lawyers to recover credit card debt is the necessity of understanding and adhering to the limitations placed on collections by federal and state legislation, primarily the Fair Debt Collections Practices Act and the New Jersey Fair Debt Collection Practices Act, respectively.
Contacting the Debtor
The first step is a written letter to the debtor. While this may seem obvious, it can be the most important step. Not only must it be in compliance with rules prohibiting threatening or harassing the debtor, it should be persuasive in clearly stating the obligation due and the consequences of failing to act. It should also provide options for the debtor that are crafted in a manner that encourages dialogue.
Locating a Debtor
It is not unusual for a debtor to either not respond to communications or to have simply moved away. It is legally permissible with certain limitations to contact third parties associated with the debtor such as friends or family. It may be necessary to work with private investigators and local counsel in other areas of the country or abroad to locate the debtor.
Filing the Lawsuit
Although clearly a last resort, pursuing a judgment in court must always be on the table as an option. However, following the exact procedure is critical. Consumer law firms representing debtors are becoming more prevalent and will examine closely each action taken during the collection process looking for some minor violation.
Contact New Jersey Debt Collection Lawyers for Legal Advice
Retaining legal counsel for New Jersey Debt Collection Lawyers matters makes sense and often provides a greater recovery. For any collection questions, call Snellings Law LLC at (973) 265-6100.