California Debt Collection Blog

Many collection matters arise from contract claims.  For example, a signed agreement exists in which Company A agrees to pay $100,000 to Company B.  When Company A defaults on its contractual payment obligation, who can Company B sue to collect?  Often times only the contracting party (Company A) is “on the hook.”  But suppose that Company A is a limited liability company which is owned 100% by an individual, John Smith.  Under what circumstances can Company B sue both the contracting LLC and its individual owner?  The answer to this ...

  It is important that creditors understand the Fair Debt Collection Practices Act, as it can impact collection strategies. The banking and credit system is dependent on the collection of valid debts. Unfair or deceptive practices undermine the public confidence which is essential to the continued functioning of the banking and credit system and sound extensions of credit to customers. The legislature has determined that there is need to ensure that debt collectors and debtors exercise their responsibilities to one another with fairness, honesty and due regard for the rights of others. In order to prohibit debt ...

One of the most under-utilized collection tools is the ability to collect from the debtor's customers.  If a third party owes money to the debtor, the creditor can demand that the third party pay the creditor rather than the debtor.  This tool is ineffective when the debtor receives immediate payment for goods or services (e.g., a restaurant), but can be extremely effective when the debtor bills for its services and gets paid later (e.g., general contractors, attorneys). To collect from third parties, the creditor must do the following: Obtain a writ of execution. Open a ...