The decision to send someone to collections is one that should be given serious consideration. Federal law governs how you and the collection agencies you hire can and cannot attempt to collect a debt.
In this guide, we explain the rules you should follow to keep your business out of hot water when pursuing unpaid debts, and we walk you through how to send someone to collections while complying with the law.
What does it mean to send someone to collections?
To send someone to collections means to hire a collection agency to recover the person’s unpaid debt to you. If you’re trying to reach a nonpaying client or customer yourself through your usual communication channels, or you’ve sent a client several letters stating their account is past due, doesn’t mean that’s sending them to collections.
Dispatches From The Front 