Frequently Asked Questions For Debt Collection

questions


 

Accounts do not age well. We recommend listing your account the moment you know it has gone bad.  The general recommendation in all industries is 60 – 90 days.  Most major creditors will either stop extending credit after 60-90 days (credit cards) and will send bailiffs to repossess a vehicle (car loans) after 60-90 days of no payment.  Listing accounts within 60-90 days will ensure a much more effective outcome with the collection of your account. 

Of course if you feel that your account will not be paid within this time, we always suggest sending it as soon as you know the account is going to not be paid.  Waiting too long to list your account can be detrimental to the collection process – especially with corporate accounts.  Many times a corporation can shut their doors and quickly shut down. If you are not one of the creditors making serious demands during these periods you risk losing out on the collection of your account.

 
You have probably already tried making demands on these individuals, either by text, phone, or letter/email.  It is important not to flood these individuals with aggressive phone calls.  If you make a threat (say to send to collection agency) it is always important to follow through.  Otherwise, you could lose credibility with the Debtor and risk them losing respect for you and your firm.  Sending two to three sincere but powerful messages to the Debtor is usually a good start.  

If they still refuse to pay after 60-90 days, then try sending a final demand to the consumer (Debtor) notifying them that x period of days has passed since their last payment (or invoice was rendered) and your office has still not received reasonable repayment methods outlined to you. Due to the fact that the Debtor has not responded to your initial demands, your office now has no other option but to send the account to a collection specialist.  Namely, In House Receivable Services.  

Include the address and contact details of In House Receivable Services on your final letter. Send a copy of your letter including the date it was sent to IRS, the same day it was sent to the Defendant.  We will input your information immediately into the IRS system. If the Debtor has not responded to you after five (5) days then IRS will immediately pursue the account for collection/repayment.

This shows that you are taking a serious stance regarding repayment of your account and are following through with all demands you have outlined.  This is the most powerful stance a creditor can take in negotiating repayment before sending to an agency.  Please also keep in mind that should the Debtor pay your account within the given five (5) days, IRS will close the collection with no charge to you.
 

1.) First we require a signed contract from any creditor before the collection process can start.  The Contract is legally required as part of the Consumer Protection Act.  A contract can be delivered to you at any time from one of our sales agents.

2.) A copy of your Invoice, Statement of Account, or judgment, showing the full amount owing including all interest charges.  If interest is being charged to the account any agreements for interest will need to be supplied.

3.) Any and all pertinent information regarding your Debtor(s).  This includes: Full Name, Date of birth and Social Insurance Number, any and all known addresses, telephone numbers and emails, place of employment, emergency contacts, agreements for interest, etc.  Of course if you do not have all of this information, no problem!  we will be able to access this information once the collection is started.  However, the more information provided from the initial listing will provide more leverage for the collection and repayment of your account.   

 

-        Yes you can sue a debtor providing the debt is less than 2 years from the date of last payment, date of invoice if no payment ever made, or acknowledgement of debt. In some provinces the courts will not accept acknowledgement of debt. 

 
Small Claims (Provincial) Court: Small Claims or Provincial Court is regarded as "The Peoples Court”.  Any debt under $35,000 can be filed and sued in Provincial Court.  Any debt over and above this amount must be registered in Supreme Court.  All filing fees paid at the court house are attached to the judgment amount.  However, any Legal Fees (lawyer Fees) associated with filing in Provincial Court are unrecoverable (which is not the case in Supreme Court). 
 

Supreme Court: Supreme Court is generally accepted as a court for the litigators.  Where Supreme Court Actions are involved, we suggest having the appropriate lawyer for the job.  You do not want to find yourself as a "Lay Person”, meaning representing yourself, in Supreme Court.  This is a court generally dominated by Barristers and Litigators.  If you are having trouble finding the appropriate Lawyer to litigate for you, please feel free to let us know.  We have Lawyers on retainer at IRS with extensive collection background able to work alongside collection and skip tracing staff. 

 

It is a common misconception that the only negative consequence for non-payment of a debt is poor credit score rating.  The reality is that outstanding debt affects more than just your credit report and can even result in the creditor taking legal action.  

 

Yes, and these trust accounts are monitored closely by our governing legal body.

 

Once monies have been collected on your behalf any funds owed to you (from our Trust Account) will be sent to you by cheque on the 25th of each month.  Therefore, you have funds delivered to you before month end!

 

Upon listing your accounts with IRS you will be supplied with a client reference number and login password.  You can access a full update at any time by visiting our website, irscollections.ca, clicking on the Login button and signing in.  All of the accounts you currently have listed with our office will be displayed and updates provided by the collector on each account.  

 

Legally, we are obligated to provide a written 5 day notice to the debtor or consumer.  Many times an outstanding receivable will only take a few days to collect.  With the appropriate leverage and information a collector is able to effectively renegotiate repayment of your account immediately.  

However, many times a debt can take much longer to pursue.  Many times the Debtors situation changes and we can then go about making demands for repayment.  The collector will know from the first call whether a debt will be collectable or uncollectable.  Many times waiting a few weeks (or months) and renegotiating with the debtor again is enough to collect.  So please be patient; not all debts are created equal.  Debts are very much like a fingerprint.  Each extremely diverse from the next.  

 

Legally, interest can only be collected if there is an agreement for interest between the creditor and the consumer.  If you do not have a clause for interest in your contract or retainer please let us know and we would be happy to provide an outline to you of what is needed.  If an agreement for interest has been signed, then a copy (or date) of when the agreement is signed will also need to be supplied.

 

Yes, One of our highly trained and experienced Consultants are able to make a time to visit with your office and walk your team through the collection process.  This includes: How to deal with delinquent clients or customers, when to send demands and how to approach, how to locate leverage in order to collect, what are the legal rights of a consumer, what are the legal rights of a creditor, etc.  

Our highly trained Consultant is available to meet with you and your staff at your convenience. Seminars and training sessions are available any day of the week.  We will stay with you and your staff until you are satisfied with the knowledge they have gained.

 

If you are in a business where you are extending large amounts of credit it is important to take the right steps from the very start of the deal.  If a certain clause is left out of an agreement or certain information is not requested of the consumer before extending credit, you could find yourself in rough waters once the consumer has left with the credit.  Being aware of the process from start to finish is detrimental to extending credit.  We call it "starting with the end in mind”.  

Our Consultants and seminar staff are eager to sit with you and your team to outline any and all areas which your business could be affected by.  Call now to speak with a consultant.

 In Canada a debt is valid for six years. However, in most provinces there is a 2 year statute of limitations on suing for debt. In layman terms, this means you cannot sue to recover a debt that is older than 2 years from the date of last payment, date of invoice if no payment ever made, or acknowledgement of debt. In some provinces the courts will not accept acknowledgement of debt.