Debt Recovery

By the time 2020 began, the trend of people shopping more from their homes and less at brick and mortar establishments was already well on its way. With the social distancing measures, home quarantine, and global economic shift that hare happening as a result of the coronavirus this year, this trend has become not just a phenomenon but a necessity for many people around the world. Because of this, TV shopping channels and online websites have experienced booming growth but also face problems that come with prosperity. One thing these institutions will now have to deal with more than ever is unpaid consumer debt. This is why TV shopping channels and online websites need to work with the right collection agency.

Why TV Shopping Channel and Online Websites Need Collection Agencies

Every business wants to be paid on time and in full but that is not always the case, unfortunately. In retail businesses, like TV shopping channels and online websites, this can be a major problem, even more so than in other industries. These businesses depend on inventory and without the proper cash flow, inventory can become a problem. 

A debt collection agency will take a small percentage of the collected funds but that is a small price to pay for being able to recoup the outstanding accounts receivable faster and more completely than a TV shopping channel or online website would be able to do on their own. The time, money, and manpower it takes to effectively collect these outstanding bills can be just as expensive, if not more, than the debt itself.

Choosing the Right Collection Agency

For many TV shopping channels and online websites, there are multiple ways they do business. Some of these businesses are all consumer-facing or all business-to-business (B2B), but many deals with both. This is why you need a debt collection agency that knows the differences between these 2 types of debt collection and the best practices within each that are needed to succeed.

The other reason to use an experienced, ethical debt collection company is because of how important brand perception and reputation are to TV shopping channels and online websites. If bad PR gets out about shady, unethical, or over-aggressive debt collection practices, it can spell bigger trouble for your company than a few unpaid bills do. It is so important that your collection agency not only knows how to collect a debt but do it in a respectful way that complies with all federal, state, and local laws.

Conclusion

Right now, we are living in an incredible time and one that has presented incredible opportunities for non-traditional retail establishments like TV shopping channels and Online Websites. Due to these circumstances, it is more important than ever that these institutions keep a tight eye on their bottom line and use the right collection agency to do so. 

ISP organizations frequently turn to debt collection agencies to collect unpaid bills and other outstanding fees to help them. Beware, some collection agencies are less than reputable and can use shady or even downright illegal practices to collect what is owed to the ISP and cable company.

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Here is a story of one such instance that illustrates why ISP/cable companies must work with a reputable and ethical debt collection agency.

New York vs. A large ISP Provider 

In one well-known case that began in 2019 and continued in 2020, Congressman Anthony Brindisi (D-NY) was taking on the ISP and cable company for their debt collection practices. Brindisi has asked the U.S. Consumer Financial Protection Bureau to investigate the practices that have been used to collect consumer debt. This aggressive and non-transparent debt collection by a third-party debt collector had landed ISP in quite a bit of hot water.

An Ethical Debt Collection Company

In addition to getting their ISP and cable company clients in trouble, Credit Management also did a disservice to all debt collection agencies by using these tactics. They fed into many of the stereotypes of debt collection companies which are not true in many cases. When ISP and cable companies work with the right debt collection companies, they can recover money owed and get it in a way that will not damage their reputation or land them in trouble with Congress.

An ethical debt collection company will work hard and use all acceptable means to collect on a debt. Still, they will do so in a way that is respectful and honest to the consumer and protective of the ISP and cable company’s reputation. They will also have a deep knowledge of the Fair Debt Collection Practices Act and follow it to the letter to avoid getting themselves or their clients in legal or regulatory trouble.

A typical collection agency can accept overdue accounts of an ISP/cable provider for debt recovery which are no more than three years old.

These days, there are very few things that almost everyone uses. However, most people do have a relationship with an Internet Service Provider (ISP) and Cable Company. Even as more people cut the cord and move away from cable television, the internet and the companies that provide it have become even more important. Anyone who works from home or has any streaming entertainment service needs internet and the ISP company that provides it. Because these companies are so prevalent in so many people’s lives, it is no surprise that they run into many unpaid bills.

Collection Letters Service

The upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees and a low-cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

Common billing issues

Late Fees and Reconnection Fees: Customers can incur late fees if a payment is missed. In cases where service is disconnected due to non-payment, there might be a reconnection fee.

Data Overages: Some plans have data caps, and customers might be charged extra for exceeding those caps.

Cancellation Fees: Early termination fees are common in contracts if they decide to cancel the service before the end of the contract.

Conclusion 

This is a cautionary tale of why ISP and cable companies must work with a reputable, ethical debt collection company. The need for these companies is a reality in this business, and working with the wrong one can be very damaging.

The YMCA is one of the largest and oldest non-profits worldwide. They serve more than 60 million people in 120 countries and are essential pillars of the community in small towns and big cities. They provide vital services for underserved populations and all types of programs and facilities for the local community. For most, the local YMCA offers these facilities and programs for a fee, and unfortunately, these fees sometimes go unpaid. In these instances, YMCAs need help recovering the money they are owed so the organization can stay financially healthy. Here is how working with an experienced, ethical debt collector can help YMCAs accomplish this.

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Why YMCAs Need Debt Collection 

YMCAs have two general types of programs they provide. There are free programs that serve the members of the community who are in need. These include family services, education outreach, child welfare, and foster care programs. Keeping track of who owes what and when payments are due can be cumbersome, especially if the YMCA center does not have a robust accounting system. Delay in payments can affect the cash flow of the YMCA center, making it difficult to manage operating expenses.

These services that local YMCAs play a massive role in the community and do so much for people in need. The challenge for YMCAs in offering these types of programs is that they cost a good deal of money and do not make any money for the organization.

This means that YMCAs must offer other ways to support these vital community-building programs. One of the ways they do this is by offering paid facility use and programming for the segments of the community who want to partake. This includes things like providing fitness facility use, dormitories, facility rental, and recreational and social programs such as Summer Camps. In many cases, members take advantage f these offerings based on just a deposit or with a monthly fee. When the balance of these payment plans goes unpaid, it can hurt the Y’s bottom line.

How a Debt Collection Agency Benefits YMCAs

Debt collection can be a touchy subject, especially for a non-profit organization that does so much good in its community, like the YMCA. However, it is a necessary process because if the Y provides too many services without the cash flow to back them up, they could fail and ultimately be of no use to the community at all. This is especially true for an organization providing many free programs for those in need. They cannot afford to carry people who can afford to pay but choose not to.

Turning outstanding accounts receivable that are 60 or 90 days past due to a debt collection company makes sense for YMCAs. These agencies have the professionals and the skill set to recover more money faster than the non-profits would ever be able to on their own. These debt collection professionals also know how to do it in an amicable and ethical way that will not violate local, state, or federal laws or cause undue stress on the member.

Conclusion

When done the right way, YMCAs using an experienced, ethical debt collection agency can be a win for all parties involved. The members can be treated with the respect and dignity they deserve and the YMCAs will not only receive the money they are owed so that they can continue offering all the essential community programs and services but also not alienate their members. This will allow the YMCA to function appropriately, stay financially healthy, and continue to meet the needs of their local community as the organization has been doing for more than 175 years.

Jewelers, just like any other business, can improve sales by offering financing options to customers. Costly items, such as engagement rings, luxury watches, and precious stones can be out of reach for many cash buyers. With branded in-house store credit, jewelers can turn more shoppers into buyers. While increased sales are a good thing for jewelers, unpaid accounts receivable can destroy the bottom line. Understanding collection options is essential for the successful use of store credit.

Need a Collection Agency for your Jewelry Store? Serving Nationwide. Contact us

Good debt collection practices begin at application

When extending credit, there is always a risk of nonpayment. Because of this risk, the best debt collection practice begins at the time credit is extended. Take the time at the beginning of the process to properly qualify buyers. Requiring a small deposit, such as $100 down, can help weed out less creditworthy buyers. It’s also important to check the buyer’s credit. When doing so, look for records of positive payments. If the applicant has delinquencies, ask for a detailed explanation. Have the applicant complete a simple cash flow showing income and expenses. If there is ample room to pay for the installments, the buyer probably is a good bet.

If properly qualified, you’ll also have crucial information to help with your collection efforts. Collect as much contact information as you can. Ask for credit references and personal references. You can contact the credit references at application to ensure their accounts were timely paid, and personal references give you a contact in the event that the customer fails to pay. One of the strongest collection tools is contact, so prepare now and be able to connect with your customer in good times and in bad.

Tools for jewelry stores

Also, consider automatic drafting for payments, so you don’t have to rely on a buyer sending payment each month. Other tips include offering incentives for early payment, such as a 5% discount or waiving the last installment. Store credit is a sales tool, but it also is part of building a solid customer relationship. Your buyer might have a temporary setback that impacts the ability to pay. Be mindful of this as part of a bigger relationship. Flexibility in payments can help ensure full payment in the future.

But, if a debtor cannot pay and refuses to engage in conversations about payment arrangements or incentives for full performance under the credit agreement, be prepared to exercise some of the collections options available to jewelers. For the most part, a jewelry store is just like any other creditor. You can formally demand payment, contact the debtor, and move to legal steps if the customer does not respond to demands

Most of your legal rights will be the same as any other creditor, with one key difference. Most consumer debt is considered unsecured, because a lien – such as a mortgage or a car title lien – is not involved in the transaction. However, in some circumstances, store credit accounts can retain a security interest (similar to a lien) in the item that is purchased with credit. This can become a powerful tool in the event of a bankruptcy proceeding. Instead of your debt is wiped away, the debtor may be required to return the jewelry to you in the event of nonpayment. It is important to ensure that you use the right language in your credit agreement to retain this protection.

Using a third-party collection agency

In most cases, collections can be more successful if handled by a third party. You have a jewelry business to run, and by handing the case to a professional collection agency, you can focus on growing your business while an experienced professional firm can engage in the type of investigation and contact necessary for successful collection.

Collection Agency Services Include

Collection Letters Service

The upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees and a low-cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of the money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls the debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

For more information on the benefits of hiring a third-party collection contact us.

The rent-to-own industry is one of the most unique business models in the country. The business is a part service industry, part retail, and part leasing company. On a given day, a Rent-to-Own business has to deal with all sorts of issues and challenges in order to keep the business up and running smoothly. Customers primarily lease furniture and appliances. One of the biggest problems in the industry is unpaid bills. 

Every Rent-to-Own company faces clients with unpaid bills all the time. There are multiple ways of dealing with this, and the Rent-to-Own industry even has special collections laws that apply only to this industry.

Need a Collection Agency for unpaid bills? Contact Us Serving Rent-to-Own Stores Nationwide

Most common AR issues are:

1. Delayed Payments: Some customers may not pay their monthly installments on time, either due to financial hardship, forgetfulness, or other reasons. This can lead to cash flow problems for the rent-to-own company.
2. Customer Default: In some cases, customers may cease payments altogether because they can no longer afford the payments or because they have decided not to continue with the rent-to-own agreement.
3. Disputes Over Product Quality or Service: If a customer is dissatisfied with the quality of the product or service received, they may withhold payment or seek to terminate the agreement.
4. Inadequate Customer Screening: Failing to properly assess a customer’s creditworthiness or ability to make payments over the long term can result in a higher likelihood of default.
5. Regulatory and Legal Challenges: Rent-to-own companies operate in a heavily regulated environment, and changes in laws or regulations can impact AR by affecting what can be charged, how collections can be pursued, etc.

No matter how you do it now, every Rent-to-Own company should consider working with a specialized debt collection agency that knows the ins and outs of the rent-to-own business. Here is why.

Dealing with Unpaid Bills 

Like any business, Rent-to-Own companies provide a service and goods to consumers, expecting them to pay as specified by the contract they enter into. When customers don’t pay, this can hurt the business’ bottom line and lead to problems. Companies with too much outstanding debt may lack the cash flow needed for day-to-day operating costs or long-term growth. This is the biggest problem facing the Rent-to-Own industry.

The industry does have some unique advantages that other businesses do not. The biggest advantage is that they own the goods until the end of the lease agreement. While this offers some protection, taking back goods is not ideal for multiple reasons, including the time it takes to resell and the possibility of being unable to sell it again. Collecting the debt owed is the best outcome, so working with a debt collection agency with experience in the Rent-to-Own industry is such a good idea.

Rent-to-Own stores offer Furniture, Appliances, Electronics and Computers on a lease. The timeframe of the rent-to-own agreement is usually 2-3 years. This may include TVs, couches, washers, smartphones, computers, dryers, engagement rings and motor vehicles. These stores are located nationwide.  Their prices are often higher because they include delivery, setup and other services many retailers don’t offer. Laws in many states allow rent-to-own companies to pursue criminal charges against customers who miss payments and do not return the rentals upon the company’s request. Unpaid bills or lease installments are a huge problem for the industry.

Knowing the Collection Laws 

One of the biggest reasons that working with a specialized Rent-to-Own industry debt collection agency makes so much sense is that they know the debt collection laws that are specific to the Rent-to-Own industry. And, not only do they know them, they know how to leverage them effectively and efficiently to get the best result.

Since the property involved in Rent-to-Own deals is still the property of the selling/ leasing company, debt collectors can be more aggressive in their pursuit of settling the debt in these situations. While it is against the Fair Debt Collection Practices Act to threaten criminal action in most debt collection cases, there are many states where Rent-to-Own debt collectors can use this tool as not returning Rent-to-Own merchandise can be pursued as theft.

Protecting Your Business Reputation

Because unpaid bills are such a big problem in the Rent-to-Own industry and collectors can use more aggressive tactics, many companies in the industry can get a reputation for being vicious debt collators. This reputation can go beyond just your collection department and seep into your core business. This can cause bigger problems down the line than just delinquent bills.

Separating your business from the act of collecting the debt is a good move for the health of your business. The debt collection company you choose can still pursue debts vigorously but will be acting independently from your core business. This will help insulate your business from negative reviews and other complaints while still allowing you to pursue debts with all the tools available to a Rent-to-Own business.

Conclusion 

 Debt collection and the Rent-to-Own industry go hand in hand. While many businesses handle it themselves, it makes more sense in many cases to use an experienced debt collection agency that knows the intricacies of the Rent-to-Own business. It will benefit the business and cost less in the long run, both in PR and real dollars.

Medical professionals widely use Raintree systems EMR, especially those practicing in Physical Therapy (PT, OT, ST), Rheumatology, Bariatrics, Pain Medicine and Pulmonology.

Already using Raintree Systems EMR? Have unpaid medical bills?  Need to transfer your overdue accounts receivable to a debt collection agency? Contact us You decide what should be the minimum outstanding balance eligible for collections. Only send accounts if a payment hasn’t been made in _(60/120/180) days. Send 5 collection demands to your patient or transfer directly for debt collection calls. You are in total control of the process. Dedicated small business debt collectors. Contact us for a demo of our free Raintree debt collection utility.

Raintree Software Benefits and Features

To run a successful medical practice in 2020, most practices need some software to help. Practice management software offers many features and benefits that allow practices to spend less time on this business end of the practice and more time focusing on what matters, caring for patients.

The problem is, every practice is different, and what is good for a cardiologist might not be suitable for a pediatrician. That is why specialists benefit most from software solutions tailored to their specialties. For physical therapists, Therapy Rehab Plus by Raintree Systems has provided specialized software for these types of practices since 1985. Here are some of this software’s biggest and best features and benefits.

“Tailored”, Not Just Customized

Like most practice management software solutions, Raintree uses words like “flexible” and “customized” to describe their offerings, but they take it a step further. Raintree integrates with your practice by offering “tailored” solutions, not vice versa. Their software is meant to manage your existing business and allow you to continue work the way you want. With this software, your practice can keep existing workflows, processes, and best practices. The software will make it all easier to manage.

The Raintree Implementation Experience

One of the biggest concerns that practices have about implementing practice management software is the time and money it will take to get it up and running. Integrating these dense systems into your practice can lead to downtime, things getting lost or missed, and more money than initially anticipated.

The Raintree Implementation Experience is an answer to these concerns. The company has a tried and tested system to get practices going with the software with minimal headaches. They will assign you a dedicated Implementation Team to help deal with any issues that arise and offer guidance and assistance until the system is up and running smoothly.

Tools Specifically Designed for Physical Therapists 

Practice management software is only as good as the tools it offers your practice. A one-size-fits-all software may have great tools, but if they aren’t designed with your specialty in mind, you may have to flex to use them effectively. With Raintree, you get an easy-to-navigate, single-screen dashboard with specially designed tools that physical therapy practices need. These tools include physical therapy-specific functions such as:

• Tracking multiple episodes of care in one patient record
• Provides workflows and templates specifically for physical, occupational, and speech therapy
• Can email or fax documents to referring and participating providers
• Uses an automated electronic insurance eligibility verification

These are just a few of the specialized capabilities this system offers. The system can also seamlessly connect all your departments so everyone in the practice is on the same page. They also offer specialized revenue cycle management (RCM) software to help your therapy practice stay on track financially while using these tools.

Conclusion 

There are a lot of great practice management systems out there, but there are very few that are specifically customized to be used by a certain specialty. That is what makes Raintree’s Therapy Rehab Plus system truly stand out. Having a software that is already tailored to your practice, coupled with the fact that Raintree is dedicated to getting your practice up and running on the system with as little hassle as possible, makes for a great practice management software solution experience.