Skip to content

6 Invaluable Tools That Every Creditor Should Know

With the structure of the Fair Debt Collection Practices Act (FDCPA), it can sometimes seem like the law favors debtors over creditors. However, you have a deeper toolbox than you realize. In this blog post, we’ll be looking at six of your most effective options. Let’s begin!

Bank Account Information

There are a few reasons why banks are a good place to start when you’re trying to collect on a debt. First of all, banks typically have up-to-date information on their customers’ account balances. This can be helpful in determining how much money the debtor actually has available to pay the debt.

Additionally, many banks now offer online tools that make it easy for creditors to access this information and set up payment plans. Finally, banks typically have established procedures for collecting debts, which can make the process simpler and more efficient.

Ultimately, while there are other options for collecting on a debt, focusing on a debtor’s bank account information is often a good place to start.

Vehicle

The second asset you should collect on a debt is the debtor’s vehicle information. This will allow you to repossess the debtor’s vehicle if they fail to make payments on the debt. Of course, there are limitations here. For example, many states require that a debtor receive written notice of repossession before the lender can take possession of the vehicle.

Additionally, certain vehicles may be exempt from repossession, particularly if there is still money owed to a separate debtor (i.e., the debtor is carrying payments instead of owning the vehicle outright). It’s also important to note that vehicles depreciate at a higher rate than most assets, so you might not be able to get the full Blue Book Value toward the outstanding debt that you are owed.

Property Information

The third asset you should collect on a debt is the debtor’s property information. This will allow you to foreclose on the debtor’s property if they fail to make payments on the debt. The property information should include the debtor’s name, address, and contact information, as well as the property’s legal description and assessed value.

Tax Return Information

Another item that creditors often look at is a debtor’s tax return information. There are a few reasons why this information can be helpful in collecting on a debt.

For one thing, tax return information can show how much money a debtor has earned in a year. This can give creditors an idea of how much the debtor is able to pay toward the debt. Additionally, tax return information can also show whether or not the debtor has any assets that could be used to pay off the debt.

For example, if the debtor owns a home or a car, the creditor may be able to put a lien on these assets in order to collect on the debt. Looking at a debtor’s tax return information can therefore be helpful in a few different ways when it comes to collecting on a debt. Creditors should use this for its informational value.

Employment Details

Perhaps the most important piece of information a debt collector can have is the debtor’s employment information. With this, the collector can verify the debtor’s income and identity in real-time (unlike with tax return details). They can also assess the debtor’s current ability to repay the debt.

Additionally, employment information can be used to locate the debtor if they move or change jobs. Last but not least, many employers are willing to cooperate with debt collectors in order to collect on a debt. For these reasons, it is clear that collecting employment information is an essential part of the debt collection process.

Social Security

One of the common questions people ask when they owe money is whether or not debt collectors can garnish their social security benefits. The answer is yes, but there are a few things you should know about this process.

First, only certain types of debt can be collected through garnishments, such as child support, alimony, taxes, and student loans. Second, the amount of your benefits that can be garnished is limited to 15 percent. And finally, social security benefits can only be garnished if one falls behind on their payments and the debt collector has obtained a court order.

So, while Social Security information likely won’t cover every type of money owed, it can help to chip away at debts that are legally owed. At least, it can if you know all the proper i’s to dot and t’s to cross.

These Resources Can Be Invaluable to Creditors But They Are Not All-Encompassing

To get a better idea of the powers you have as a creditor, it’s best to work with an established debt recovery service. At Southwest Recovery Services, we have a long and proven track record of knowing where to turn and how to get those outstanding payments collected. Contact us today if we may be of service. We are eager to help!

Recent Comments

    Have A Question?

    Get In Touch

    Southwest Recovery Services is a national collection agency with offices in Texas, Oklahoma, Missouri, Ohio, Florida and Georgia.

    Payment Processing

    • Online Payment Terms and Conditions

      Welcome to the Southwest Recovery Services LLC payment processing site. Please read and agree to the following online payment terms and conditions, website Terms of Service, and Refund Policy prior to agreeing and completing your online payment.

      *** NOTICE ***

      This is an attempt to collect a debt and any information obtained will be used for that purpose. This communication is from a debt collector. If you have any questions or would like to talk to a live Collections Specialist, please call us at (866) 558-3328 during standard business hours: Monday thru Friday 8am-6pm CST. You can also mail your payment directly to Southwest Recovery Services LLC, 16200 Addison Road Suite 260, AddisonTX 75001.

      Credit Card Transaction

      By submitting payment information through this Service you agree to the terms and conditions of this Agreement and any documents incorporated by reference. You further agree that this User Agreement forms a legally binding contract between you and Southwest Recovery Services Inc. and that this Agreement constitutes "a writing signed by You" under any applicable law or regulation. Any rights not expressly granted herein are reserved by Southwest Recovery Services Inc.. By clicking on the "I Agree" button and by clicking on the “click here to pay by credit card” button, you are accepting these terms and the stated fees for using this service.

      IMPORTANT:  Please make sure that you have correctly inputted your account number and creditor’s name in the payment form. This information can be found on your bill. For assistance, please contact us at (866) 558-3328. 

      This site provides a secure payment portal for making online payments. Please ensure that you are paying the correct party and that you have a valid account number received from us.

      If you do not know your account number, please do not make a payment through this web site at this time. Instead, please Contact Us to obtain your account number before returning to make the payment. Without the account number we cannot credit your account with the payment you make on this site, which would result in a significant delay in processing of your payment.

      • This is a web site of a collection agency.
      • This is an attempt to collect a debt.
      • Any information obtained will be used for that purpose.

      Question? Contact Us: info@swrecovery.com

    Make A Payment