California Collection Agencies: Facts & Laws - Nexum Group Inc | Florida Collection Agency

California Collection Agencies: Facts & Laws

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California Collection Agencies: Facts & Laws

Debt collection is an integral part of most businesses simply because it is next to impossible to completely escape it. No matter how thoroughly you conduct background checks on them or how carefully you evaluate their financial status, you will come across clients and customers that will either lag behind in payments or will take on loans that they are unable to payback on. Whichever way it happens, the resulting measure is the same: debt collections.

 

If you are a resident of California, or have business there, it is important to be aware of the laws governing debt collection in the state of California as well as some important facts.

 

Debt Collection Laws in California

Two sets of regulations for debt collection ensure that the process is conducted without any illegal, abusive or damaging means by both parties, i.e the creditors and the indebted. They are:

 

  • The Federal Fair Debt Collection Practices Act (FDCPA) is a federal law that serves to act upon all major states in the USA.

 

  • The California Fair Debt Collection Practices Act (CFDCPA) which is specific to the state of California and provides more protection than the federal law.

 

Facts About the FDCPA

  • It only applies to a collection company that is collecting debt on a third party’s behalf. For example, it does not apply on the store to which you owe money, but if the store hires a collection agency, it applies on the agency.
  • It does not provide any particular means for the debt to be erased.
  • It serves to offer protection from harassment, abuse, deception and any other illegal or damaging means used for debt collection.
  • It provides a window for the indebted to decide where, when and how he/she wants to be contacted or approached by collectors.

 

Facts About the CFDCPA

  • It applies not just on a third party collection agency but also on original creditors, people who are tasked with collecting debt as a part of regular business, companies that create the tools for debt collection, etc.
  • It does not, however, apply on foreclosure and occasional debt collectors.
  • It has a statute of limitations that outlines a time period of 4 years for debt collection for all kinds of consumer debts except those based on an oral agreement, for which the statute of limitations is 2 years.
  • It serves to offer protection from harassment, abuse, deception and any other illegal or damaging means used by creditors and/or collection agencies for debt collection.
  • You can sue creditors/agencies for violating the CFDCPA in court, and if you are successful in the lawsuit, you can win the actual indebted amount plus attorney fees and perhaps a small additional amount for damages as well.

 

Once you are armed with this basic information regarding debt collection laws and facts in California, you can both ensure that your company makes no mistake in pursuing a debt as well as ensure that you are not wronged in any manner by creditors.
Nexum Group has done the research and not only collects but educates companies on how to do it the correct way.

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This agreement is made between Nexum Group and You herein referred to as client.

  1. Client warrants the authenticity of all claims placed with Nexum Group for collections. Client agrees to forward supporting documentation for each claim to prove the validity of the debt upon request.
  2. Nexum Group agrees to use its best efforts to collect on any and all claims submitted.
  3. Claims placed with Nexum Group by CLIENT shall be charged the below contingencies.

Any claim under (1) year over $1,000 shall be charged a contingency of 30%. Any claim over (1) year over $1,000 shall be charged a contingency of 35%. Any claim that is under $1,000 or requires litigation shall be charged a contingency of 40%. Nexum Group is owed its respected fee regardless if the debtor pays the CLIENT directly or Nexum Group.

  1. Client shall report all direct payments made within (4) days of receipt of payment. It is agreed that commissions due on direct payments shall be remitted to Nexum Group within (14) days.
  2. Any merchandise returned to CLIENT by debtor will entitle Nexum Group to a 10% contingency of the invoiced amount.
  3. CLIENT agrees that Nexum Group can forward a case to an outside law firm to assist in the recovery to assist in the recovery and grands permission to do so at their discretion. CLIENT must give the approval to transfer the case if the transfer results in additional charges
  4. Any claim placed by CLIENT that is found to be placed in error or previously paid will be bill by Nexum Group at a rate of 10% of the amount.
  5. Nexum Group shall account to client all payments collected monthly and provide portal access to track payments online. CLIENT will be provided a statement enclosed with each payment made by Nexum Group. Anything collected before the end of each month will be remitted at the end of the following month.
  6. CLIENT may recall a claim forward to Nexum Group if the claim is not in legal status or there has been no recovery on the account within 90 days. Any cancellations must be expressed in writing via email to corporate@nexumgroupinc.com. Upon cancellation, all fees owed to Nexum Group shall be paid in full. Claims withdrawn after payments have been received or intended to be received CLIENT shall be charged the full contingency for balance submitted. 
  7. This agreement shall is governed by the laws in the state of Florida. In the event, any provision is found to be invalid or unenforceable, that provision shall be deemed removed and remaining provisions shall remain in full effect.


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