Property managers and landlords would probably admit that the worst part of the job is collecting past due rent. Some property managers give up too soon believing that it's hopeless to try to collect. In fact, there are many options to pursue, including these 7 tips on tenant debt collection, before hiring a debt collections agency. With the proper documentation, a little effort and the selection of the right collections agency, property managers can recover past due rent successfully.
When property managers implement a streamlined rent collection process and expectations are outlined in the lease agreement, rent payments are typically made on time. Those payments that are delayed or remain unpaid can be especially trying to a landlord. Fortunately, a past due or unpaid rent bill doesn't have to be the end of the process. Property managers do have options.
Here are 7 ways for property managers to collect past due rent.
The Fair Debt Collections Practices Act (FDCPA) was created as a way to protect consumers from fraudulent collections practices. These protections include when and how a debt collector can contact a consumer and the options available to the consumer to dispute the debt. Debt collectors work on behalf of the original creditors in order to recover a debt and must identify who they are, who they represent, and must not fall out of compliance of FDCPA standards for collecting. In the case of rent collection, this leads to a few important questions:
When a property manager is collecting rent on behalf of a property owner/original creditor, does that mean that property managers are, in fact, debt collectors? And if they are, does that mean they have to follow the regulations of the FDCPA?
The National Apartment Association’s annual Student Housing Conference was this week in Chicago. BYL Collections was on-site as an exhibitor, along with our sister company, VeriFirst Background Screening. The conference features the inside scoop on student housing from trends, builders, leasing, property managers and developers.
Here are the latest updates and tips from the NAA Student Housing Conference and Exposition.
Topics: Student Housing
More Americans are burdened with student debt and medical debt than ever before. These debts appear to be "necessary" debts in that many consumers don't feel they could have been avoided. They didn't have much choice but to pursue healthcare options during accidents or illness. College or university is part of the pursuit of the American dream, for those whose parents have degrees and for those who wish for a better life than their parents. These debts adversely affect the ability to pay other debts, including mortgage, utilities and credit card bills, and build savings or retirement, which leads to problems with credit scoring and debt collection.
Here is the latest information on student debt in America.
In a recent report by the Consumer Financial Protection Bureau (CFPB), it was reported that a majority of consumers contacted by debt collectors were for medical bills. Another recent CFPB report highlighted a complaint where a debt collection agency falsely represented themselves as a law firm in order to attempt to frighten consumers into paying. As the CFPB consumer collection survey reveals, and with possible repeal of the Affordable Care Act, more Americans may be facing more medical debt than ever.
With consumers of all ages and financial status affected by medical debt, We will share News and highlight better options for collecting medical debt.
Topics: Medical debt
With more Americans living paycheck to paycheck, Professor Lisa Servon decided to understand why people are reducing their reliance on traditional banks. Her new book, The Unbanking of America, shares how every day individuals, from business owners to students to immigrants, are moving to creative banking alternatives. In examining a unique view of money management, the author highlights ideas that serve the lower and middle class with imagination and thinking outside the box.
What is turning American consumers away from banking to alternative options?
At the end of 2016, the Consumer Financial Protection Bureau (CFPB) released its complaint report for November. The complex report reveals the most debt collection complaints, what industry is most affected, what states are most problematic, and highlights abusive or deceitful debt collection tactics. Although debt collection issues are not the only complaints fielded by the organization, they are the majority of complaints in the monthly reports.
What is the CFPB and does it affect debt collection?
Debt collectors get a bad reputation for being aggressive and deceitful to individuals who owe a past due bill. What consumers may not know, however, is that there is regulation meant to protect against this behavior. Not only is the debtor protected from obscene language or outright lies, but there are several other matters that violate what's known as the FDCPA or Fair Debt Collection Practices Act.
Consumers have a choice to report bad behavior if they are aware of their rights.
Consumers are notably concerned about the effects of collections on their credit rating. The FCRA protects consumers from inaccurate reports on their credit and also provides a way to dispute false information. When a consumer is educated on debt collections and its effect on credit reporting, they are more likely to pay on time. From a creditor's standpoint, reporting delinquent accounts to credit bureaus doesn't only impact consumer credit but can also affect the collections process.