If former clients still owe your company money, debt collection can be essential to your bottom line. The state of Wisconsin has strict regulations on the practice, which is why Luke A. Weiland Attorney at Law in Wisconsin Rapids offers guidance on how to pursue these payments. Here, he provides information that will help your company collect on its debts.

Common Questions About Business Debt Collections

Can We Ask for Information from Other People?

There are strong restrictions against discussing your debtor’s case with anyone other than the account holder. However, you can ask for a limited amount of information in certain cases. You’re allowed to ask neighbors to confirm that the account holder lives at the address on file and whether they have current contact information. You’re also allowed to ask employers whether the account holder works for them.

Can We Threaten to Sue?

Once again, there are conditions on the threat of legal action. The proposed suit needs to be part of your regular course of business, and must be directly concerning the debt being discussed—you can’t threaten unrelated legal action to coerce payment.

How Do We Avoid Harassment Claims?

If your behavior during the debt collection process is perceived as threatening, hostile, or coercive, you may have crossed a legal line. To prevent charges of harassment, speak civilly to account holders, avoid insults including vulgar language, call only at reasonable hours, and limit call frequency.

What Can I Do If a Customer Disputes the Debt?

If the account holder disputes the debt within 30 days of the initial notice, you’re required to send them verification of the debt. Until that letter is sent, you may not continue collection activities.

Collecting on overdue accounts is an essential task for many companies, and it’s important to comply with all regulations and guidelines. Following Wisconsin’s debt collection laws protects your company from potential legal backlash. If you have questions about this common business law practice, reach out to Luke A. Weiland Attorney at Law for advice. Call (715) 422-6808 or visit the firm online to set up a consultation.