Are you using artificial intelligence to support your debt collection efforts? If not, you may want to employ the powers of AI to assist and boost your recovery rates on accounts receivable. Despite fears that AI will replace all human functions, AI won’t replace your collections department. However, your collections
Summons and complaints are the most important pleadings filed in debt collection litigation, which makes properly drafting summons and complaints incredibly important. A summons is a notice to the debtor that the creditor is filing a lawsuit against them. The complaint is the meat. It is where the creditor outlines
Legislative changes affecting consumer collections for consumer credit transactions recovery went into effect in 2022 largely as a result of the Consumer Credit Fairness Act (CCFA). The reforms were then codified into law through updates to the Civil Practice Law and Rules of New York. As a result, the law
Let’s say you provided a loan to a borrower. The borrower had been paying as scheduled but now comes to you and says they are having a cash flow problem. The borrower asks for a temporary pause on payments and says they will start making payments again after that period
Our client — a successful supplier of kitchen cabinets and appliances — was a subcontractor who did business with a well-known hotel operator for over 13 years. The hotel operator, although slow to pay, always sent a payment when truly pressed. But the payments became few and far between due
What happens to the money on deposit at the debt collection lawyer’s bank if that bank fails? Could you stand to lose the money? Recent news could leave you wondering whether monies collected and deposited by your debt collection attorney on your behalf will be safe or at risk. This
Last week, a New York court ruled that the NY Guaranty Law passed during the pandemic, which prevented landlords from pursuing good guy guarantors and others for commercial property, is unconstitutional. Can you now bring a lawsuit in New York against guarantors, including those who signed good guy clauses? During
Whether the defenses raised by the debtor are valid or not, a debtor defending a debt collection case can delay collection. A debtor can buy themselves time just by filing an answer to the summons and complaint. The amount of time afforded depends on the court’s caseload and the timeframe
You may hear a client claim that the person who requested the goods or services or, in some cases, who signed the contract, had no authority to do so. As a result, the client refuses to pay. Who can sign a contract and can a debtor refuse to pay on
In order to allow creditors time to file actions that might have gone past the statute of limitations due to the shutdown of the New York courts during the COVID-19 pandemic, the governor issued a series of executive orders that have had long-term effects on New York debt collection litigation.