Owed money? Should you call a debt collector or a lawyer?

Owed money? Should you call a debt collector or a lawyer?

If someone owes you money, you may be unsure as to whether you should be engaging a debt recovery lawyer or alternatively a debt collection agency.  It is usually dependent on the circumstances, the amount of debt and the required timeframe for resolution.

It is recommended that you talk to both a debt collection agency and debt recovery lawyer, in order to see which is the best option for you.  However, some factors which you may wish to consider are:

Debt collection agency

  • Debt collection agencies have competitive fees and adopt a “no collection, no commission” model.  Meaning that, they will only charge commission only if and when they have successfully collected the debt.
  • Have the incentive to collect fast, since they want to be paid their commission;
  • They have a high success rate as it is their speciality and have experience in collecting debts; and
  • They tend to do a free appraisal of your debt.

Debt recovery lawyer

  • Can provide comprehensive and tailored legal advice and recommendations (especially in circumstances if the debt is disputed, as debt collectors are limited in what they can provide);
  • Are able to draft a customised letter of demand;
  • Can file court documents and represent you in any court proceedings later down the track;
  • They can provide you with a realistic and commercial solution, depending on your needs and circumstances of the debt; and
  • Have a high success rate as it is their speciality and have experience in collecting debts

Should you require any assistance in regards to unpaid debt, contact our debt recovery lawyers now to discuss your options in a no-obligation consultation with the experts. We will guide you, step by step and ensure the best possible outcome for your circumstances.  Call our Brisbane lawyers on (07) 3009 8444 or our Sydney lawyers on (02) 9307 8900. Alternatively, click here to get started.

The blog published by Rostron Carlyle Rojas is intended as general information only and is not legal advice on any subject matter. By viewing the blog posts, the reader understands there is no solicitor-client relationship between the reader and the blog publisher. The blog should not be used as a substitute for legal advice from a legal practitioner, and readers are urged to consult RCR on any legal queries concerning a specific situation.

 

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June 24, 2022 |

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