Why you shouldn’t fear debt collection agencies

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More than a few individuals have confessed to having some amount of fear when it comes to dealing with debt collectors. As far as Brennan & Clark LLC is concerned, this is a very natural human reaction, considering the many debt collectors who have not been using best practices in doing business. This blog is about why people who are in debt shouldn’t fear debt collection agencies.

First off, debt collection agencies are interested in making a profit. You should realize that they can achieve this by providing you with manageable terms. If you think about it, it would be foolhardy for them to charge you with an amount that is greater than what you owe your original creditor. In fact, debt collection agencies can charge you with less than what you owe. You may be wondering how, and Brennan & Clark LLC is quick to explain.

When a creditor writes off your debt, meaning to say that they have determined that you do not have the capacity to pay for what you owe them, the creditor sells the entitlement to an external entity, which is the collection agency. This is usually sold for pennies to the dollar, much less than what you originally owe.

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With this, the collection agency has a lot of leeway in terms of how much they will charge you. Often, this means that you get to settle for less than the amount that you owe. Logically, this is because the collection agency did not pay too much for it anyway, and you should not be worried about having to pay a very big amount either.

Brennan & Clark LLC says that you can rest assured that there really is not much to fear when dealing a debt collection agency. If anything, they can provide you with the exact options that can work for you, so that you can be free of debt at the soonest.

Backed up with more than three decades of experience, Brennan & Clark LLC helps clients recover more from their delinquent accounts than they normally would with any other collections agency. It holds membership in many professional organizations like the Commercial Collection Agency Association, the Commercial Law League of America, The International Association of Commercial Collectors, and the Insurance Accounting and Systems Association. For related articles, visit this page.

Some ways for businesses to avoid the debt trap

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The experts at Brennan & Clark LLC always find ways to help their clients manage their debts properly. Even if it is in their line of business to see successful debt collections through, they share ways to manage debt and the burden of financial obligations to the benefit of debtors.

1. Examine your capacity to pay

Think seriously about your capacity to pay off a loan. Somehow, it doesn’t make sense to incur a loan that requires you to pay $500 a month if your take-home pay is a mere thousand. Your new loan is just one obligation among many, which is the case for mostly anyone. Have a good look at all your current obligations before taking in another one to fulfill.

2. Make partial payments

You might have bitten off more than you could chew in your last loan. The experts at Brennan & Clark LLC are fully aware that this can happen sometimes. Whenever a full repayment is not possible, there is no shame in offering to pay in part. Certainly, it does not get you off the hook. However, when you explain your situation to the debt collectors and pay a partial amount, you avoid getting a bad reputation that can land a huge blow to your credit rating.

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3. Talk to your creditors

The best way to avoid going deeper into your hole is to talk to debt collection agencies when they come to your door. Once you overcome the shame of being in debt and start being open, you will find out that debt collectors are here to give you the best possible options that you can take for you to pay off your debt successfully at a pace that you are comfortable with.

A founding member of the Commercial Collection Agencies of America, Brennan & Clark LLC is committed to bringing unparalleled service to its clients. It offers highly specialized solutions to clients, crafting programs suitable for their specific needs. Visit this website for more information.

Debt settlement strategies for those experiencing a financial crisis

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Brennan & Clark LLC continues to inform readers on debt collection and settlement in light of the COVID-19 pandemic. For those who are experiencing financial challenges during this economic and health crisis, here are some strategies that can help.

Keep a debt log

The pandemic has brought a disruption in the livelihood of many people. However, it’s also important to stay on top of these matters so that a person can get back on track once resources become available. To do this, one must keep a debt log that will keep track of payments, interests, and collection notices. This is also good to have when in correspondence with collection agencies such as Brennan & Clark LLC.

Communicate

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Talking with creditors and collection agencies can be done in a courteous and convenient manner. Asking for debt validation, paying the minimum, seeking a debt settlement plan, and showing proof of one’s financial situation will allow these parties to provide a debtor with terms that will allow them to still pay their debts, even as they are trying to get back on their feet.

Manage spending

During these times, unnecessary purchases can lead to even more debt. For those who are already struggling with their finances, coming up with a budget will allow them to make the most of the resources they have left. Coming up with a debt settlement plan and working with collections agencies will allow those with outstanding debt to start prioritizing their payables just so they can start improving their credit score, which will benefit them in the future.

Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. For similar reads, head over to this page.

The main characteristics of a good debt collection agency

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Debt collection may be one tricky business, which is why it is no wonder that many debt collection agencies are resisted by so many individuals who have a lack of understanding. To level the playing field, Brennan & Clark LLC shares a few things which make for a good debt collection agency.

1. Good debt collectors are great listeners.

Whenever a debt collection agency approaches a debtor, they treat them as though they are clients. They make a nice impression because they approach their clients with a kind understanding. Nobody wants to be in debt, and for the most part, people who get into debt do so because circumstances force them into it. Good debt collectors offer a sympathetic ear to such clients.

2. They are also informative.

Debt collection agencies who do business can resist applying aggressive power play over debtors, even if they technically have the motivation to do so. The first option that they take is to educate their clients about the options that they can use to pay their debts. This way, they significantly decrease the chances of any clients showing hostility towards them and increase the chances for the debt actually to be settled.

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3. Good debt collection must include excellent tracing.

Particularly, quickly finding a defaulting client makes a debt collection agency competent at what it does. Accurate tracing saves a lot of time and effort, which could then be focused more on finding ways to facilitate debt payment. Tracking down defaulters sooner rather than later is always an advantage, as Brennan & Clark LLC attests.

Brennan & Clark LLC is a business collections agency based in Villa Park, Illinois, and was founded in 1980. The firm aids businesses get the most out of their accounts by collecting money at the right time and running an effective business system. To know more about debt collection, follow this Twitter page.

The debt settlement process: How will it affect personal credit score?

There are many reasons why an individual can ask to settle their past due accounts at a negotiated cost. Unexpected events such as the loss of a job, sickness, divorce, and other valid reasons can convince lenders to lower the amount one has to pay back. In some cases, some companies allow debt settlement for people who admit that they have lost control of their spending. Sometimes, creditors will look at a person's capability to pay before approving their request. The experts at Brennan & Clark explain how the debt settlement process can either make or break the credit score.

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Credit bureaus receive a report each month regarding an individual's accounts. They will see whether the debt was "settled," "paid as agreed," "paid in full," or "unpaid." According to the team at Brennan & Clark LLC, when a person doesn't pay the full balance, it can have a negative effect on their credit score.

On the other hand, settling debt such as credit card bills that are considered to still be in good standing along with other accounts might also affect a person's credit score negatively. For those who want to work on their scores even as they pay off debt, paying some accounts on time will help a person keep earning points.

For those who want to recover from piled up debt, prioritizing past due accounts can sometimes be the best option. Once these payables have sbeen settled, a person can start building up their score by being more responsible about using and paying credit.

Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. For similar reads, head over to this page.

A guide to getting out of debt even without enough funds

Paying off debts can be difficult, especially for those who have failed to manage their spending. When payables are more than one's income, it can be a challenge to prioritize payment. But for those who are struggling, the finance expert team at Brennan & Clark LLC shares some ways to start the journey to financial freedom.

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Come up with a budget

Failing to plan is planning to fail. When one sets out to pay off debt, it's good to have a budget that will prioritize needs over wants. It can also be a good way to reflect on one's spending habits. Having a budget for oneself or the household will help one prioritize and schedule payments.

Go for debt negotiation

Sometimes, unexpected life events can cause a person to miss out on other financial responsibilities. If this is the case, asking collectors and creditors for a debt negotiation will allow a person to lower the credit or even to have more time to complete their payment. While this might not benefit a person's credit score, the team at Brennan & Clark LLC share that negotiating amounts and schedule can help a person pay their debts bit by bit.

Seek help

Those who have a spending problem can seek help from their family and friends. Though they might not be able to give financial assistance, they can guide a person in other aspects as they do their best to settle their debts. On the other hand, seeking advice from finance professionals is a great way to get back on track with payments, budgeting, and savings.

Brennan & Clark LLC has expertise in achieving well-defined goals in the collection process and guaranteeing better results on collections. Visit this blog for more articles on debt settlement.

Credit, debt, and the responsibility of collections agencies

Small business owners sometimes have a hard time following up their on unpaid invoices. When invoices remain unpaid, a business might suffer. Business owners can allot their time on other tasks instead of following up clients for their late payments by employing the expertise of a debt collections agency.

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Brennan & Clark LLC has been a leader in the industry for more than 30 years. According to the company, as an account matures, the possibilities of it getting paid drops significantly. It may be time for businesses to seek the help of a collections agency when their new client fails to respond to the first invoice letter. Immediate referral to a collections agency can keep potential losses at the lowest cost.

Some clients only pay when they want to. In extreme cases, they don’t pay at all. When payment terms fail, a collections agency can reduce the cost of losses by their quick action. If and when a client denies their responsibility to pay, based on unfounded complaints, business owners better hand over the account to a debt collections agency.

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It would be good for small business owners and freelancers to maintain a signed credit application, document, contract, and order slip with the client’s contact details. This way, if a client refuses to pay, a business can easily transfer the account to a debt collections agency. Working with a debt collections agency requires a business to rely on the agency’s expertise, experience, judgment, and diligence.

Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. For more information, head over to this page.

What it means when collection agencies are calling your company

Not all companies have the same in terms of financial stability. Many companies are backed by shareholders which can easily funnel resources into the company when needed. Then there are those companies who have a hard time keeping up with expenses.

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Companies with financial struggles could possibly miss making payments to their suppliers, or companies whom they have hired to render services. According to collection experts at Brennan & Clark LLC, companies who are 90 days delinquent on their payments can be subject to collection calls from third party collection agencies. When your company starts receiving these calls, it can mean any of these multiple situations.

Firstly, the company your establishment owes credit to is serious regarding collecting the debt. If they are willing to hire a third party debt collection agency, they are also willing to pursue legal action as well.

Secondly, accredited third party collection agencies often have connections to credit bureaus and can report your company’s tardiness. This can affect your company’s line of credit by giving it a bad score, limiting chances of future loans from creditors.

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If the collection call your company receives is from a personnel of the company to whom you owe money, you run the risk of aggravating the situation and possibly losing a trusted supplier. Tension tends to mount when dealing with financials. It is possible that the company you owe money to is in dire need of the payment due to their financial situation as well.

According to professional debt collectors from Brennan & Clark LLC, avoiding collection calls is the last thing you would want to do. Collection agencies have years of experience in dealing with these types of situations. They can also help design payment plans which can benefit both parties.

Brennan & Clark LLC is a business collections firm with over 30 years of experience. Based in Villa Park, Illinois, the agency was founded in 1980. For more insightful reads on debt collection, visit this website.

Understanding the Mini-Miranda warnings

When a person is about to be arrested, law enforcers should never forget to state his or her Miranda rights, otherwise, most of what the suspects say in custody cannot be used as evidence.  In debt collection, a similar set of warnings, called the Mini-Miranda warnings, is required when contact is initiated with the debtor.

The Mini-Miranda warnings require a debt collection agency to explicitly state that:

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·         It is a debt collector.

·         The reason for communication is an attempt to collect or recover a debt.

·         Anything that the debtor will say, or any information provided, can be used for the purpose of debt collection.

Whatever form of communication the collector uses, the Mini-Miranda warnings or rights should be presented.  If a face-to-face meeting was set or a phone call was made, the warning must be voiced out.  And if the collection process was initiated through a letter or via other written methods, the Mini-Miranda warnings must be included in the message.

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One of the primary reasons the Mini-Miranda warnings were created was to help protect consumers and businesses from abusive debt collection practices.  Also, when the Fair Debt Collection Practices Act (FDCA) was enacted in 1977, the Mini-Miranda rights were also specified without officially being labeled as such (it’s important to keep in mind here that the Fair Debt Collections Practices Act is in play for consumer collections and not for commercial or B2B collections).  It was only after it was realized that the warnings were similar to the Miranda rights did lawyers, politicians, debt collectors, and financial analysts started to refer to these as the Mini-Miranda warnings.

Brennan & Clark LLC has decades of expertise in the business collections industry, allowing them to help companies achieve well-defined goals for their collection process, evaluate internal procedures, plan and implement improvements, and ensure better results on collections. Visit this website to read more about the firm.

The importance of recordkeeping in debt collection

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Debt collection can be a complicated affair because of various factors. But creating and implementing a procedure for record keeping can help make the collection process more efficient and increase the possibility of recovering as many funds as possible. Below are some of the possible outcomes of having an accurate record:


Easier settlement of disputes: A complete record serves as necessary evidence for businesses when it comes to collecting receivables and debts. It can also determine whether previous correspondences or attempts to recover funds have already been made. The earlier a resolution to commercial debts is made, the less likely it is that a costlier process would be needed.


Getting the facts straight: When talking to debtors, it is imperative to present only facts and avoid providing misleading information as it can trigger legal actions against the business. With a well-kept record, a business will have access to all the transactions that have been made, as well as the partial settlements that may have been agreed on.

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Statute of limitations: Debts are also subject to a statute of limitations, which differ from state to state. This means that there is a period that the processes involved in the recovery of debt can be legally enforced.


Brennan & Clark LLC is a business collections firm founded in 1980. The firm’s prime program is the Fast Track Payment guarantees payment within five working days, allowing clients to get on with their core businesses. To see more details about the program, check out this page.

The Differences Between Commercial And Consumer Debt Collections

Debt collection has deep roots in history, perhaps along the same time when money was invented.  The rules of debt collection remain largely unchanged, with things like honoring one’s commitment to pay within a certain period of time.  With many more commercial transactions today, however, debt collections have branched out to commercial debt collections and consumer debt collections – what are the differences between the two?

In a nutshell, commercial collections are aimed toward recovering unpaid business invoices owed to another business.  Consumer collections, on the other hand, are made when a consumer owes a debt to a specific business.

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Commercial collections are different from consumer collections in a number of ways.  Agencies conducting them are not governed by the Fair Debt Collection Practices Act or the FDCPA, although they may be required to be licensed in the state where they operate.  Their work involves a larger expected payment, where an unpaid commercial invoice could affect the cash flow or very survival of a business.  Their collection efforts, too, involve communications with the accounts payables department of a firm and also potentially an escalation to a credit manager.

Consumer collections govern business to consumer (B2C) relationships, and also differ in some ways.  Their agencies are regulated by the FDCPA, limiting the ways their representatives are able to connect with consumers to facilitate payments.  Their efforts involve tracking down the debtor to fulfill his or her obligations, and the amount of the debt may be much smaller than what’s owed in business to business (B2B) transactions.

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Brennan & Clark LLC is a business collections agency offering customized receivables support solutions that enable businesses to eliminate credit losses. Its expertise helps companies achieve well-defined goals for their collection process, evaluate all internal procedures, implement improvements, and guarantee better results on collections. Read more on this page.