Training Course
Syllabus:
Accounts Receivable/Consumer Debt Collection - From Delinquency to Bankruptcy
Course Description:
Consumer debt collection is among the most regulated areas of business there is. In fact, the United States is known to be "debtor-friendly", meaning debtors typically have more rights and protections than creditors. The Federal law that regulates consumer debt collection is the Fair Debt Collection Practices Act. Companies that have full knowledge of this Act normally fare ok with debtors. Those that do not risk a civil lawsuit. The issue is that the Act itself is open to interpretation in many areas, and even veteran collectors get tripped up by it. Business-to-business (commercial) debt collection is governed by the Uniform Commercial Code, and the government tends to take a more "hands off" approach. This seminar will delve into both consumer and commercial debt collection regulations, and offer best practices to increase your company´s rate of recovery while remaining within the bounds of the law. We will also cover how to handle being sued by a debtor for alleged violations of the law, and how to pursue aggressive collection techniques properly. Finally, the seminar will cover how to handle a debtor bankruptcy. Learning Objective: Learn how to increase Accounts Receivable recovery without violating Federal law Learn how to use the credit bureaus as one of your biggest weapons against debtors Learn how to use more aggressive collection techniques like judgments and garnishments Learn how to minimize the impact of a lawsuit brought by a debtor for violation of Federal law Learn how to deal with people other than the debtor to obtain information you need to collect on delinquent accounts Learn how to deal with debtor bankruptcy and understand what you MUST do to protect your rights
Course Benefits: Full understanding of the Fair Debt Collection Practices Act Full understanding of the Bankruptcy Code and how to protect your rights Comprehensive analysis of the three major areas of the FDCPA that trip up even experienced collectors Comprehensive analysis of the civil lawsuit process and how to defend yourself in court if sued by a debtor
Areas Covered: Fair Debt Collection Practices Act Fair Credit Reporting Act U.S. Bankruptcy Code Medical Collections - HIPPA Guidelines Uniform Commercial Code - Personal Guarantees and Promissory Notes Choosing a Collection Agency - And Knowing When to Find a New One New Law Related to Bankruptcy Filings You MUST Know About How One Simple Email Can Land You in Court Being Sued by a Debtor - Best Practices Course Outline: Day One (8:30 AM – 4:30 PM) Registration Process: 8:30 AM – 9:00 AM Session Start Time: 9:00 AM Introduction to Debt Collection and the Regulatory “Backdrop” Fair Debt Collections Practices Act Origin and History The Three Areas that Trip Up Even Seasoned Collectors Harassment, Threats, Illegal 3rd-Party Disclosure Case Study One – The Collection Agency That Would Not Quit Fair Credit Reporting Act Origin/Purpose Why It’s Your Biggest Weapon Educating the Debtor Regarding Negative Items on their Credit Reports Uniform Commercial Code and HIPPA Overview of Sections Pertinent to Commercial Collections Promissory Notes and Personal Guarantees How to Properly Structure Trade Credit Terms Remaining Within HIPPA Guidelines during Medical Collections Case Study Two – Lapses in the Commercial Credit Process Proper sequencing of documentation Determining whether or not to extend trade credit Comprehensive Case Study: The Debtor-Creditor “Dance” Day Two (8:30 AM – 4:30 PM) The Bankruptcy Code The CRITICAL Difference Between “I am broke” and “I am bankrupt” General Background of Bankruptcy Laws Chapter 7 Bankruptcy Chapter 11 Bankruptcy (Commercial Only) Chapter 13 Bankruptcy Chapter 9 Bankruptcy (Specific to Public Entities) Chapter 12 Bankruptcy (Farms and Fisheries) Protecting Your Rights during Debtor Bankruptcy Dealing with the Court The Meeting of Creditors Two Things You MUST Do to Protect All the Money You Are Owed The “Means” Test – Chapter 7 versus Chapter 13 Bankruptcy Aggressive Collection Techniques Foreclosure/Repossession Judgments and Garnishments The Homestead Exemption and Other Exempt Property Why a Judgment is No Guarantee You Will Ever Get Your Money Being Sued by a Debtor Flowchart of Process Why Settling Out of Court Might Be Your Best Option Penalties for Violating the FDCPA Choosing a Collection Agency versus Staying “In-House” National Association of Credit Management Understanding Credit Fraud and Preventing It Accounts Receivable Aging Schedules – What They Are REALLY Telling You The “1099-C” Strategy for Lenders Examples and Comprehensive Case Study.
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