California Lawyer for Creditor Collections

Attorney Helping Small Businesses Collect Debts

When a small business provides a product or service, timely payments from clients are important in order to maintain the business's cash flow and operations. When payments are late, a business owner faces the delicate challenge of collecting the amount due without damaging client relationships or violating state or federal creditor collections laws. If you are unsure of how best to handle collections for your business, an experienced attorney can help to guide you through the process.

At the Law Office of David Schechet, we represent business owners in a wide range of legal matters to help them protect their financial interests and avoid liability. We can help you improve the process of routine collections, as well as manage complicated situations that require legal action. David Schechet graduated from UCLA Law School with highest honors, and he has been in practice for 35 years. He will use his knowledge and experience to help you achieve the best possible resolution.

Help Throughout the Collections Process

Any time you provide a product or service for which payment will be made at a later date, it is a good idea to have a clear sales or service contract in place with your client. A contract can specify the services to be performed or the products to be provided, the payment due for each of them, the date by which payment should be provided, and any late fees or other consequences for missed payments. We can help you draft standard or specialized contracts that meet your needs and make expectations clear to both parties.

Keep in mind that even if a client misses a payment, it may not be necessary to initiate collections right away. A better approach may be to send a reminder or communicate with the client to better understand their situation. If the client is having trouble paying, you may be able to negotiate an extension or a plan for the client to provide partial payment. However, if a client refuses to pay or continues to shirk their obligations, you may need to take further action.

We can help you draft formal demand letters to send to late-paying clients, as well as advise you on the decision to hire a collections agency to handle further communication with the client. If your collections efforts continue to be unsuccessful, we can work with you to file a claim or lawsuit and represent you throughout the litigation process to legally enforce the payment and collect any other damages you may be entitled to.

Understanding State and Federal Collections Laws

Throughout your collections efforts, it is important to be aware of the rights and protections granted to debtors under federal and state law. California and U.S. legal statutes both include a Fair Debt Collection Practices Act that prohibits creditors from engaging in certain actions in their attempts to collect payment. You could face legal consequences for doing any of the following:

• Contacting a client at an unusual or inconvenient time
• Harassing or threatening a client
• Making false or misleading statements
• Trying to collect more than the amount owed
• Publicizing a client's debt, or discussing it with their employer or family members
• Contacting a client directly if you know they have hired an attorney for representation
• Attempting to contact a client after they have requested in writing that you stop collections communications

Additionally, according to the California Debt Collection Licensing Act passed in 2020, you will likely need to obtain a license if you intend to perform any debt collection actions on your own, without the assistance of a collections agency. We can provide legal counsel to help you ensure that you fulfill all legal requirements and avoid behaviors that violate debtor protections.

Contact a California Debt Collection Attorney

We understand how important it is to get the payment you are owed, and we can help you do it through legal means. Contact us at 800-282-4731 for a free initial consultation. We serve small business owners and others who need collections assistance throughout the state of California.