You sue a company that did business with you since before the son took over, you knew the father but now the son is a deadbeat liar and after you sue their firm their answer is you did not do business with them you did business with a third party (whose check they used to pay the only money you ever saw — the down payment of $25,000).

You hired a lawyer, three years passed since the bum has failed to pay you and after you spent tens of thousands in supplies and manpower the judgment debtor does not return calls or emails.

So after you pay to find hidden bank accounts and assets the judgment debtor’s bank turns over funds to the marshal; now the judgment debtor hires a lawyer and interposes an order to show cause stating he never did business with you. And you receive an offer of $30,000 to settle a judgment of almost $90,000!

The days of a man’s word being his bond are long gone. Today some customers plan to rip you off from the git go.

Caveat venditor…

Now this technique actually works when you want to force an agency to stop calling to collect any bill. Your request is above board if you are either disputing the obligation the other side claims you owe; or you state you cannot pay due to health, job loss, ill relative you are caring for.

Naturally this technique while legal and fair, should really be used only when you are really in trouble. Remember you can always cry poverty and make a ridiculously lowball offer to settle and see if they bite. A good way to do this is to say: “We are working out settlements instead of filing [bankruptcy]…” Offer 35 cents on the dollar and see what they say.

Then ask for the collection agency’s fax number specifically for the purpose of demanding that they cease and desist from calling you any longer effective immediately upon receipt of the facsimile.

You may get some attitude from the person on the other side, at which point you need to ask to speak with their supervisor but first… ask the customer service representative for their name in case they hang up on you.

Most of the time you should not push the actual collector to stop calling but rather say: “I do not want to waste your time or mine as I cannot pay this bill until…” whatever calendar week you believe you can make a payment or simply say you cannot pay due to this that or the other reason and you want their firm to stop calling you effective immediately.

When you send the fax cover alone or a letter with it demanding they stop calling you state there that you are sending a copy to the attorney general of your state. As in any official business correspondence you need to put the acronym — for example — cc: Office of the Attorney General of New York State.

That adds a level of seriousness to your correspondence and indicates you mean business and are not to be trifled with. So to summarize you can demand that a collection agency cease and desist from calling you, they can still make written demand as long as they abide by the applicable Civil Practice Law and Rules.

In a case when an agency (not the one you paid and settled) attempts to collect a paid a bill or settled account after an oral agreement for an amount all parties approved, and you paid and cleared good funds.

The new agency claims authority and demands payment by phone and letter with instructions as to how you can make payment for the bill — the one you know you settled with good funds a while back.

Now it may just be that some vendor such as a mobile phone provider, a bank or financial institution sold what is called non performing paper or delinquent accounts to a third party.

Meanwhile you are hunting around for your paper copy of the paid bill, the actual check the bank processed, a money order stub, something to prove you paid and to stop the agency from calling you daily. Ask for the customer service representative or collector’s name before you go further, if they hang up you can complain about them to their superior.

Then ask for the collection agency’s fax number specifically for the purpose of demanding that they cease and desist from calling you any longer effective immediately upon receipt of the facsimile. You may get some attitude from the person on the other side, at which point you need to ask to speak with their supervisor but first… ask the customer service representative for their name in case they hang up on you.

Most of the time you should not push the actual collector to stop calling but rather say: “I do not want to waste your time or mine as I cannot pay this bill until…” whatever calendar week you believe you can make a payment or simply say you cannot pay due to this that or the other reason and you want their firm to stop calling you effective immediately.

When you send the communication demanding the agency that calls you every day and usually more than once a day to immediately stop calling you. Remember to state by using the cc: that you are sending a copy to the attorney general of your state. As in any official business correspondence you need to put the acronym — for example — cc: Office of the Attorney General of New York State.

In short, you can demand that a collection agency cease and desist from calling you any further, but it must be done in writing.

On the other hand the claimant can still make written collection demands as long as they abide by the applicable Civil Practice Law and Rules or FDCPA as the case may warrant. Also keep in mind that in the event you really owe the money, the statute of limitations in each state decides when a creditor is out of time for the purposes of filing a claim. In New York State the statute runds three years without an agreement and six years when there is a written contract or letter agreement.

The writer of this blog invites you to contact him at richard@creditresolution.com or visit www.creditresolution.com for additional information, call or write Mr. Ackermann and he will help you, you are under no obligation

Now you may think why involve a collection agency when you could use your attorney, the one you know from school or somebody that did your house closing or maybe even your divorce. Remember that lawyers specialize although their profession frowns on attorneys who only do this or that type of law.

Meaning you will know when your lawyer started a lawsuit, you will probably pay him more than the attorneys a collection agency uses, these commercial collection lawyers specialize in two things, keeping costs low and making money primarily on actual collections not fees.

So an attorney you as a lay person may know as an honest lawyer may not work out for you simply because collection law is different than say bankruptcy or real estate law. That is why in virtually every case when dealing with a collection agency that has a good reputation for honesty and effectiveness, not to mention creative collection tactics that induce the debtor to pay your bill first.

Try to remember that when a potential customer wants you to print his business cards and stationery to open his business, he will sign any type of agreement to get you to give him an interest free loan from your business in kind, as in telephone cable installation, computer supplies and machinery… that prospective client is in a terrific mood usually, very excited and hot to trot.

This is the time to get a personal guarantee because one day after the customer is late in paying you, he may stop taking your calls. Then you will remember the advice you got here today. When they are wooing you they will sign away silly, after maybe their operation got off to a slow start it somehow becomes the problem of the vendor. Trying to get a pre-nup after the marriage is going to be very hard. Go for the protection when the customer needs you badly. It will save you a lot of sleepless nights.

Richard Ackermann has been in the large balance commercial collection agency business since 1986. He began as a process server and then partnered with a famed commercial attorney who trained Richard in the commercial collections field. After a couple of years CreditResolution.com began working with major law firms as a third party collection agency for some of the most important law firms in the world. Banks are also clients of CreditResolution.com.