Debt Collection

There are two main areas of debt collection; consumer debt collection and commercial debt collection. When it becomes apparent that a debtor is likely to default, the creditor must initially ascertain whether the outstanding bill pertains to consumer or commercial transactions. The classification of the debt is crucial in determining the legally permissible debt collection practices that a creditor can employ to recover the funds lent, or goods and services rendered, to the debtor. This distinction is significant because federal law does not apply to commercial debts, while Florida law oversees the collection of consumer and commercial debts separately, under distinct statutes.

Florida provides statutory definitions for both consumer and commercial debt. Consumer debt is defined as debt that is “primarily for personal, family, or household purposes…” § 559.55(6), Fla. Stat. (2016). Commercial debt is defined as debt that is “primarily for commercial purposes and not primarily for personal, family, or household purposes…” § 559.543(1), Fla. Stat. (2016).

Regarding federal regulation of debt collection practices, Congress enacted the Fair Debt Collection Practices Act (FDCPA) in 1977. Congress stated that the aim of this legislation was to “eliminate abusive debt collection practices by debt collectors… and to promote consistent State action to protect consumers against debt collection abuses” (15 U.S.C. § 1692(e) (2016)). However, Congress limited the definition of regulated debts to those that are “primarily for personal, family, or household purposes” (15 U.S.C. § 1692a(5) (2016)). Consequently, Congress effectively exempted commercial debts from regulation under the FDCPA.

Ultimately, the course of action to be taken hinges upon the particular circumstances surrounding the debt and the willingness of all parties involved to collaborate towards finding a resolution.

Consumer Debt Collection in Florida

Per the FDCPA (Fair Debt Collection Practices Act) and FCCPA (Florida’s Consumer Collection Practices Act ), debt collectors must send a written notice five days after they first contact a consumer. This written notice must contain information on the amount due, the creditor to whom the debt is owed, and the actions to be taken if the debt can not be paid. If the consumer believes the debt is not legitimate, they must send a letter to the debt collector stating this within 30 days of first contact. The debt collector must cease contact with the consumer after receiving the notice unless they can provide proof to the consumer that the debt is valid.

A consumer can also send a letter to the debt collector requesting them to cease contact. The debt collector must honor this request, and only contact the consumer to notify them that they will not be contacting them further, or to inform them of legal action the debt collector is taking against the consumer.

Commercial Debt Collection in Florida

Business debtors do not receive the same protections as consumers and have fewer options in the collections process. Collaborating with a knowledgeable attorney experienced in assisting Florida businesses in managing debt issues can empower you to regain control and identify the optimal solution tailored to your specific circumstances and priorities.

Initially, all efforts to circumvent litigation should be pursued, as certain legal strategies may result in more cost-effective collection. This process usually starts with straightforward old fashioned legal communications. The creditor should engage the assistance of their legal counsel, who can then initiate contact with the debtor in a professional manner. Should this approach prove ineffective, the next step would be for the attorney to draft a demand letter to send to the debtor. A demand letter succinctly outlines the debtor’s breach of contract due to non-payment of overdue debt, while expressing the creditor’s preference to avoid formal legal action if possible. It should also stipulate a reasonable deadline by which the debtor must remit payment to the creditor, failing which legal proceedings will ensue.

Seeking guidance from a commercial debt collection lawyer in Florida or a debt collection legal specialist is essential. It ensures compliance with the law and safeguards the interests of all involved parties. Given the complexities of debt collection, expert counsel can mitigate risks and foster equitable outcomes.

Who is a Debt Collection Lawyer?

A debt collection lawyer in Florida handles cases related to the collecting of debts from consumers by a debt collection agency or other creditor. At Ludwin Law Group, our debt collection lawyers use their knowledge of Florida debt collection law to help clients collect debts without violating federal and state laws. We also assist clients who feel they are being threatened by a debt collection agency, or have had legal action taken against them by a creditor.

When to Contact a Debt Collection Lawyer

There are many scenarios where a debt collection lawyer’s services are needed in Florida, either assisting debt collectors or defending a consumer against them. Some scenarios include:

• A debtor continues to refuse to pay a legitimate claim: A debt collection lawyer can help you file a lawsuit against a debtor, and then determine the appropriate measures to collect on the debt, including seizure of assets or garnishing of wages.
• A debt collection agency uses harassing and dubious methods, such as calling you frequently at late hours or threatening extralegal action: A debt collection lawyer can help you sue the agency for damages and subsequent legal fees.
• A debt collection agency files a lawsuit against you, for a debt you believe is illegitimate: A debt collection lawyer can defend you in a lawsuit from a creditor or collection agency, or negotiate with them for a smaller debt or a more relaxed payment schedule.
• A creditor is unsure whether a debtor has the ability to pay a debt: A debt collection lawyer can conduct an asset search to determine if a debtor has the means to pay a debt or is uncollectible.

Maritime Liens

One form of debt collection that we specialize in at Ludwin Law Group is maritime liens. The maritime lien serves as a form of security for a creditor, typically in response to services rendered to the ship or damages caused by it. Maritime liens are automatically established by legal operation at the time when services are provided or damages occur. Essentially, the vessel is treated as a “person” who can be held liable for unpaid “debts”.

Maritime liens are generally created without consent from any involved party, and with some exceptions, are not officially recorded. Maritime vessels under construction, or decommissioned/withdrawn, are not subject to maritime liens. To enforce maritime liens against a maritime vessel in Florida, an in rem action against the maritime vessel must be filed in federal court. From there, a warrant may be issued for the maritime vessel’s “arrest” (seizure), although this is generally reserved for high-value cases. At Ludwin Law Group, we have combined knowledge of debt collection and maritime law and can help you with enforcing maritime liens or defending your maritime vessel against a liens claim.

Why Choose Us?

Debt collection is a stressful situation for all parties involved. Negotiating and reaching an agreement with a debtor is a sensitive undertaking that demands clear communication and a thoughtful strategy.

Ludwin Law Group stands out through a unique combination of assertive advocacy, tailored assistance, and a comprehensive grasp of industry intricacies. Our achievements extend beyond mere monetary gains; they encompass the trust and reassurance we deliver to businesses across the country.

Our Services

We offer a wide range of services to individual and corporate clientele. These include:

• Asset Searches
• Writs of Garnishment
• Seizure and Sale of Property
• Debt Negotiation
• Remedy for Non-Payment
• Collection Harassment
• Maritime Liens
• Judgment Domestication
• Post Judgment Collections

The legal team at the Ludwin Law Group boasts a wealth of experience, having secured numerous victories in recovering substantial sums for various businesses, ranging from banks to smaller enterprises and individuals.

Our consistent success is rooted in our expertise and dedication to effectively pursuing commercial debts on behalf of our clients.

For further information about engaging a consumer collection attorney or a commercial collection attorney in Florida, reach out to us today to arrange a consultation. To schedule a consultation for a debt collection case, or for further information on our services, call us at (561) 455-4455, or fill out our online inquiry form.

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