it’s your business
By Phil Britt
a certain time period, it will result in
litigation with increased costs, possible
attorney fees and other sanctions will
often be effective,” Olson adds. “The
business should make sure, however,
that the collection notice required by
the Fair Debt Collection Practices is
included in the letter.”
Business-to-business collections present
different issues, adds Olson. “The letter
from the attorney should be probing to
find out if there is a problem with the
product or simply a failure to pay. Also,
if the client has no expectation of a
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continuing business relationship then the
letter should be stronger than if the client
wants a continuing relationship.”
Smaller businesses are more likely
to view a letter from an attorney more
seriously, says Olson, but in both smaller
and larger businesses any envelope with
a return address of an attorney gets read.
If the first letter doesn’t work, Olson recommends a second letter with stronger
wording.
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Negotiate?
Though it’s certainly extremely
unpopular, some appraisers might also
want to consider accepting a reduced
amount or a payment plan, says Olson,
pointing to the general state of the
economy. With more accounts of all
types becoming delinquent, payment
plans for outstanding debt are becoming
more commonplace.
“Appraisers have to determine if
they’re willing to compromise, and if so,
how much,” he says.
The main thing is to try to make the
collection before going to litigation, which
has its own expenses, Olson says. Knight
points out that most appraisal fees are
small enough that an appraiser can take a
delinquent client to small claims court to
collect, avoiding more expensive litigation.
An appraiser may represent himself, and
many will. Others will hire an attorney.
Collection services offer another
resource. Some charge a flat fee, others
charge a percentage of the recovered
amount. The more delinquent an account is, the higher the fee is likely to be.
Liens are also possible in some states,
but the lien process can be involved and
expensive, so it may not be worth an
appraiser’s effort, except as a last result,
Olson says.
925/932-7753
www.norcal-ai.org
PHIL BRITT is a Chicago-area based writer
who writes about appraisal and financial
services issues for a variety of national
financial services publications. He also
formerly held an Illinois real estate salesperson’s license.
