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FAQs

When should a claim be submitted to Western Capital?

Accounts are delinquent when they have not been paid in accordance with your terms. Early contacts will give you the maximum chance of return. The most productive efforts take place during the period between 30-90 days past due. Beyond 90 days, recovery percentages start dropping dramatically. If an account is delinquent, you are probably not the only creditor demanding payment. Usually the creditor that acts promptly gets paid and those that wait, hoping to save the agency fee, wind up filing a claim in the Bankruptcy Court.

Turn over an account to a professional agency once you feel your own reasonable collection efforts are not productive.

What are the costs to have Western Capital collect on my accounts?

Our collection fee plans are quite simple.  We charge a standard 33% on all accounts placed for collection under $100,000.00.  For balances larger than $100,000.00 we offer discounts.  In the event that it becomes necessary to involve an attorney to protect your interests, we will then charge a standard fee of 50%.  Click Here For Details

What documents are required by Western Capital?

Initially, it is only necessary to complete the AGREEMENT and SUBMIT CLAIM FORM. Upon receipt of these two documents, we will begin to collect on your accounts. You can at a later time mail or fax us copies of all documentation regarding a claim, including the sales contract, statements, invoices, correspondence, orders, credit reports, credit application, personal guaranty, returned checks, and other information that would help to establish your claim or help us to collect.

If a judgment has been obtained against the debtor, provide us with a copy. At a later time, if suit is required, we will need a certified and/or exemplified copy.

Once Western Capital starts the collection process, what are the chances of success?

The odds of collection are fairly good at an early stage, but drop dramatically with the age of the account. The sooner an account is placed, the greater the likelihood of collection.

Can a creditor collect interest on the unpaid claim?

Generally, yes. Any agreed upon rate should be added to the account at the time of submission. If it is necessary to file suit, interest will be part of the legal demand. The rate varies from state to state.

Can the creditor recover costs of collection?

If suit is filed, you can generally recover filing and service fees and other court costs. Attorney fee recoveries will depend on your agreement with your account and/or the laws of the state where the suit is filed.

If a case goes to trial, what does the creditor have to prove?

  1. That a contract (express or implied) existed;

  2. The terms of the contract;

  3. The merchandise was properly delivered or the service properly provided;

  4. Demand for payment has been made;

  5. Payment has not been received.

Must the creditor provide a witness if a suit is filed?

If the debtor does not contest the suit, a default judgment can usually be obtained without the necessity of a personal appearance by a witness. Some courts require the submission of an affidavit to prove the claim before a judgment will be issued. If the claim is contested, it is usually necessary for the creditor to provide one or more witnesses who have personal knowledge about the facts of the claim.
Most commercial collection cases are resolved before they ever go to trial. In cases where a witness is required and it is not economically feasible to send one, the attorney will try to settle the claim so that there is some recovery.

What is a counter suit?

A counter suit is the filing of a suit by the debtor against your company. The agreement of the attorney to handle the filing of your claim does not include the handling of a defense to the counter suit. It will be necessary to enter into an separate agreement with that attorney for your defense or you can retain your own attorney.
Very few counter suits are filed by debtors. Unless you have been previously alerted to claims being asserted by the debtor, your claim against the debtor is valid, and the debtor remains in business, you should seriously consider filing suit on your claim.

What's the difference between a creditor collecting on its own behalf and a third-party collector?

The collection practices of third-party collectors are directly regulated by the Fair Debt Collection Practices Act administered by the Federal Trade Commission. Credit grantor's collection practices are covered by law only under certain conditions. Also, third-party collection services are specifically set up for collection with specially trained staff and specialized equipment, including phone systems, computers and collection software.

Why are accounts referred for collection?

Most accounts are referred for collection because they have gone unpaid for a long time and the creditor has not received any communication from the consumer. People who provide goods and services to consumers on credit rely on their customers' promises to pay. While they value their customers, they must also depend on payment to meet their own expenses. The longer an account remains unpaid, the smaller the likelihood that it will be paid. When the creditor can no longer afford to carry past-due accounts and cannot collect them economically, the accounts are either written off or referred to professional, third-party collectors.

Is there a typical debtor?

Collectors know that there is really no such thing as a typical debtor and that it's important to treat people according to their individual cases. Consumers from all walks of life can overextend themselves. Many have simply not planned their finances well. Still others have lost their jobs or suffered unexpected set backs, such as accidents or illness.

What about those people who have fallen into debt because of catastrophic events, such as accidents or illness?

Western Capital's Code of Ethics requires our staff to  "show due consideration for the misfortunes of consumers in debt and to deal with them according to the merits of their individual cases." Collectors realize that they need to help such consumers find solutions for their financial difficulties and assist them in making plans to meet their financial obligations.

How can collectors call people about their debts day in and day out?

Many people like working with other people, and that's exactly what a collector does, work with people. Collectors become experts in communication, especially in listening. Their work requires an understanding of human motivation and behavior. Because many credit grantors deal with large volumes of accounts receivable, often the collector is the first person to engage the consumer in a problem-solving dialogue about his or her unpaid bill. Collectors also enjoy the challenges and rewards of their job. A paid account represents success for the collector, recovery for his client and peace of mind and self-respect for the consumer

Is the collection industry regulated?

Collection practices are well-regulated by federal and state laws. The Fair Debt Collection Practices Act, administered by the Federal Trade Commission, prohibits abusive, misleading and unfair debt collection practices

How has the collection industry changed over the past 15 years?

The biggest changes in the collection industry have resulted from increasing automation. Fifteen years ago, most collection offices kept track of accounts by using paper cards. Information was recorded manually and collectors dialed their phones themselves. Now, most offices are computerized and use collection-specific software. Sophisticated telephone systems with automated dialers are becoming common. Also, collectors are better trained. The American Collectors Association, Inc. has an extensive education program for all aspects of the collection business. The association also administers certification and degree programs.

How is the collection industry likely to change in the next 15 years?

Collection businesses are likely to offer more varied client services, including billing, accounts receivable management and storage of records using new optical scanning and storage devices.

How does bad debt affect the economy?

According to the American Collectors Association, in the United States more than $70 billion is turned over to third-parties for collection annually. There is really no such thing as an unpaid bill. Those of us who do pay our bills ultimately pay for those who don't. Because bad debt represents an expense of doing business, it is partly offset by higher prices. The American Collectors Association estimates that each person in the United States pays $250 more for goods and services per year because of bad debt. Other consequences of non-payment include business failures and the loss of jobs.

How do the efforts of third-party collectors affect the economy?

Third-party collectors reduce the amount of past-due accounts that are ultimately written off as bad debt. Collection, a part of accounts receivable management, helps businesses maintain their cash flows and stay profitable. Collectors benefit consumers by helping to keep down the prices of goods and services. They also offer debtors an opportunity to talk with a person who can help them resolve payment problems without litigation. The collection industry itself employs about 125,000 people. Finally, the health of the U.S. economy depends on the proper functioning of the credit system, which gives consumers many choices. The collection industry is a necessary part of this credit system.

How do I submit a claim?

Go to our Online Account Placement Page and start Collecting NOW!

Call Today  1-800-373-8913
Fax 1-800-865-4197

 

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