Q. Why retain Newman, Hess & Associates, P.A, rather than a collection agency
Most creditors would agree that the vast majority of nationwide collection agencies will do very well collecting debts from persons and entities predisposed to paying the debt. Newman, Hesse & Associates, P.A., as a collection law firm, will collect that sum plus, through legal execution, it will collect a major part of the debt incurred by persons and entities not so predisposed.
The vast majority of NHA clients would agree that the collection of their debts, especially in this faltering economy, is too important a task to assign to a collection agency which, by definition, is limited in its collection efforts to writing letters and making phone calls. Absent this legal action component, this restriction on collection agency services necessarily results in less money being recovered for the creditor.
More importantly, as a result of the law firm’s superior knowledge of federal and state laws, it will collect those debts without unintentionally subjecting the client to embarrassment, and loss of credibility or prestige. The Law Firm’s knowledge and experience will also act as a protective barrier to credible law suits.
For example, depending on the particular facts of each individual case, your collection effort may be regulated by the following Federal laws and regulations;
The Fair Debt Collection Practices Act, 15 U.S.C. 1692 - 1692(p)
The Fair Credit Reporting Act, 15 U.S.C. 1681 - 1681(x)
The Federal Consumer Protection Act - 15 U.S.C. 1673
The Gramm-Leach-Bliley Act, 15 U.S.C. 6801 - 6809
GLBA Final Rule - Privacy, 16 CFR Part III, Sec. 313 (May, 2000)
GLBA Final Rule - Safeguards, 16 CFR, Part VII, Sec. 314, (May, 2002)
The Health Insurance Portability & Accountability Act (HIPAA), PL 104 - 191, as amended under the Health Information Technology for Economic and Clinical Health Act (HITECH) - Under the 2009 Economic Stimulus Package.
HIPAA Final Rules - Privacy, 45 CFR Part V, Sec. 160 - 164 (August, 2002)
HIPAA Final Rules - Security, 45 CFR, Part II, Sec. 160 & 164 (February. 2003)
HIPAA Final Rules - Identifier Standards, 45 CFR Par IV, Sec. 162 (January, 2004)
HIPAA Final Rules - Standards For Electronic Transactions, 45 CFR, Part III, Sec. 160 & 162, (August, 2000)
Internal Revenue Code, Sec 6050(p)
Internal Revenue Code, Sec 6721 - 6724
U.S. Treasury Dash 1 Regulations, 26 C.F.R. 1.6050(P)-1
U.S. Treasury Dash 2 Regulations, 26 C.F.R. 1.6050(p)-2
Service members Civil Relief Act, 50 U.S.C. App. 501 - 596
Telephone Consumer Protection Act, 47 U.S.C. 227
Federal Rules & Regulations Implementing the TCPA, 47 CFR, Part II, Sec. 64 & 68 (July 2003)
The Federal Telephone Sales Marketing Rules, 16 CFR Part 310 (January 2003)
Check Clearing for the 21st Century Act, PL 108-100 (October, 2003)
The Electronic Fund Transfer Act, 15 U.S.C. 1693 - 1693®
Regulation E, 12 C.F.R. 205 - 1-205 (including App. A - C & Supp. 1 to Part 205)
Regulation CC, 12 C.F.R. 229.1 - 210.32
Regulation J, 12 C.F.R. 210.1 - 210.32
Right to Financial Privacy Act, 12 U.S.C. 3401 - 3422
U.S. Bankruptcy Code, Chapters 7, 11 and 13 U.S.C.
In addition, the success or failure of your collection effort and the client’s exposure to suit will be affected by a multitude of state statutes and common law factors, including, but not limited to:
The Kansas Consumer Credit Code, K.S.A. 16a - 1- 301, 16a-2-506, 16a-3-302, 16a-3-303
The Kansas Fair Credit Reporting Act, K.S.A. 50-701, et seq.
The Kansas Consumer Protection Act, K.S.A. 50-623, et seq.
The Kansas Act On Unconscionable Telemarketing, K.S.A. 50-675
Credit Service Organizations, Regulation, K.S.A. 50-1116, et seq.
Unsolicited Consumer Telephone Calls, K.S.A. 50-670
The Kansas Secured Transactions Code, K.S.A. 84-9-101, et seq.
The Civil Procedure For Limited Actions, K.S.A. 60-213, et seq.
The Kansas Garnishment Act, K.S.A. 60-729
Collection of Municipal Court Fines and Restitution Orders, K.S.A. 12-4119
Collection of Judicial District Court Fines and Restitution Orders, K.S.A. 75-719
The Kansas Consumer Credit Code, K.S.A. 16a-6-113
The Kansas Consumer Protection Act, K.S.A. 50-634, et seq.
Kansas Commercial Paper, K.S.A. 84-4-102, et seq.
The Kansas Uniform Commercial Code, K.S.A. 84-1-101, et seq.
The Kansas Consumer Credit Code, K.S.A. 16a-5-102, et seq.
Kansas Contract & Agreements, K.S.A.16-101, et seq.
And common law decisions too numerous to list here. Your local, experienced collection law firm provides the level of knowledge, professionalism and expertise needed to maintain a successful receivables program.
At best, the failure of a collection agency to strictly adhere to any one of these federal laws, state statutes and common law doctrines may result in the client’s embarrassment and loss of money, credibility or prestige. At worst, the failure may result in a class action lawsuit against the collection agency and the creditor.
Finally, a creditor, be it a bank, business or a government agency, is concerned about preserving the local economy and thus, the viability of its sales or tax base. Economists tell us that each $1.00 spent on a Kansas collection law firm results in a Kansas revenue increase of $8.00. Each dollar spent on a national collection agency located in California, Texas or elsewhere produces an economic windfall for California or Texas. Kansas attains no benefit from the expense. The creditor who uses a Kansas collection law firm is a more effective steward of its and its employer / constituent’s money.