Skip to content

How to Turn Tax Refund Season into Collection Success

Toward the end of the year, many people will be eagerly anticipating tax payments. The average federal tax return is around $ 2,000. For the average person, this amount can be a significant contribution to annual expenses such as vacations, car repairs, and holiday purchases. Tax returns can also be used to pay off debts, but sometimes overdue bills are no longer a priority for debtors. At Southwest Recovery Services in Dallas, Texas, our team of experienced debt collection agents has spent years helping our clients recover lost revenue and settle unpaid accounts.

If you are a creditor and your debtor receives a return during tax season, you might be curious about whether or not you can uphold your rights as a creditor and claim some or all of the money. Debt collection laws are sometimes difficult, but one principle is simple and direct: private lenders (generally all lenders except state or federal governments) cannot file federal tax return claims. Private lenders cannot interfere with debtors and tax returns.

However, the tax recovery season can increase the debtor’s cash flow and offer more opportunities for successful debt collection. The biggest part of the struggle for collection is the lack of funds. The best scenario is positive communication to encourage voluntary payments and better information to lenders so that appropriate action can be taken. The tax return season can be a good thing for debtors and creditors alike if some important guidelines are followed.

Focus on Communication Instead of Enforcement

In addition to the availability of funds, successful collection requires communication, time, and an organized and strategic approach. Effective legal enforcement is a last resort, but it is expensive, difficult to manage effectively, and can sometimes lead to new obstacles that can hinder the collection process. Always try to communicate before you decide to dispute a case in court. Lawyers’ fees and legal costs can quickly erode any return at the end of a case, and aggressive litigation can cause the debtor to rely on cash, hide money, and further avoid debt payments. Effective communication and positive relationships with debtors are very important because they can help lenders avoid expensive debt collection processes and encourage debtors to use some or all their tax payments to reduce their debt.

The trick is to maintain a professional, friendly, positive and value-oriented relationship with the debtor. After the debtor sees the lender as an enemy, communication will most likely be interrupted. In some cases, especially for those who have great financial difficulties, the debtor can devalue the importance of debt in their head. Consistent communication helps return the concept of value to unpaid debt.

Work Toward Mutual Success

It is easy for the debtor-creditor relationship to be contradictory. However, a friendly communication approach can mean that you are not your debtor’s enemy, but your partner who supports them with financial problems. With a good balance, you can explain the benefits of paying off your debt and anticipate payments better. This friendly approach can also be used when the debtor disputes the amount due because it makes this dispute easier to approach. And a friendly tone can be the key to handling upcoming tax returns and including them in the payment schedule.

Persistence is Important

Your debtor may not have the resources to pay their debt right away. Their tax returns may or may not be available to cover the amount owed to you. However, without an organized, well-managed and ongoing communication plan, you will lose contact with your debtor. If you are not maintaining regular contact, your debtor can get a tax return or other cash flow and use the money for something other than paying your debt.

One of the most important elements behind successful debt collection is persistence. Often, lenders do not have the time to develop communication skills that are aligned with the goals they hope to achieve for successful collection. The inclusion of a professional debt collection service can have the biggest impact here. A professional collector knows the legal requirements and possibilities, but can also be a source of constant contact and building relationships to ensure mutual success.

Trust Southwest Recovery Services in Dallas, TX to Help You Collect!

If you are struggling to build a productive relationship with a debtor or have concerns about settling an overdue account, then the last thing you want to do is devote even more time and resources to the process of understanding how to finally get the problem taken care of. Instead, don’t hesitate to contact our team right away so we can work with you to get your accounts settled and your revenue streams back on the right track.

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:

Make A Payment