There is an unfortunately common assumption that all creditors are faceless
entities from the bank or another lending organization. People are quick
to label them as “bad” because they pursue debts owed to their
company or their client. In reality, this is only business and not meant
to feel personal. Recovering a loan is part of the job, not a declaration
of war. If you are a creditor and need to recover a loan from a party
that has fallen back on payments, you should keep these hints in mind
to help the whole thing go as smoothly as possible:
Initial conciliation: Before anything happens, you can actually request conciliation with the
debtor, which is discussing the agreement one-on-one. You might be able
to work out an informal yet effective new way to recover the loan without
relying on a battle.
Consistency: Reach out to the customer often but not during odd hours that could be
seen as harassment. If the debtor files for bankruptcy and assets are
sold for creditors, courts will often reward whichever creditor put in
the most effort first, so don’t neglect your role to contact them.
Clean records: Get your papers in order, keep them that way, and let the loan customer
know the exact details of the agreement. A loan’s validity can be
taken into question if your documents are not thoroughly processed.
Alternative options: You may want to discuss other ways the customer can repay the loan with
your parent company. Is there anything else that can be done to help them
pay you back sooner? It may benefit everyone to explore other options.
Litigation: If worse comes to worse and it seems that recovering the loan through less
direct methods is not going to cut it, you are permitted to seek litigation
against them. Remind the customer first that litigation is an acceptable
method of resolution, and never make threats or claims that are not true.
Be compassionate: Always remain calm and kind when dealing with a debtor. They will appreciate
your understanding of their situation but also respect your authority
as a representative of the loan’s controller. All in all, it will
lessen the stress levels for both sides.
Experienced and Sympathetic Counsel
At The Pritchard Law Firm, our Fort Worth consumer collection attorneys
have spent years representing creditors
and debtors. We know both sides of the issue and can use our insight and understanding
to your advantage. You can
contact us today for more information, or request a
free initial consultation to learn your rights as a creditor attempting to recover a loan.