Debt collection is not a fun job, especially when you have already asked the party to make the payment more than twice. After all, no one likes to call someone and repeatedly ask for money. Not getting paid on time after a judgment can even be more problematic when you have payments to make to other parties. This might also ruin your relationship with them.
If someone is not paying you and that is risking your reputation in the market, you might need to hire an attorney to collect on a judgment in New York. However, you must ensure that you hire someone with an appropriate license or that the company they work for is registered with the government. Working with an unlicensed debt collection agency can have serious consequences.
Consequences of Using an unlicensed debt collection agency
Risk of scams.
When you think about unlicensed debt collection agencies, you may think they are a good option since they usually offer low prices. However, this low price could just be a scam. This is what scammers do. First, they lure people in by telling them that they are the cheapest in the market, and then before you know it, they have collected your money from the debtor and fled away. With unlicensed agencies, there is always the risk of scams.
Risk of a lawsuit.
Using an unlicensed debt collection agency puts you at great risk of a lawsuit. When you hire a company to collect debt from a debtor, you should always ensure that they have a license. If they do not have one and the debtor finds out about it, the agency and you may be sued by the debtor. This is because operating a debt collection agency or any other kind of company is unlawful and a felony in some states.
Disobedience of laws.
Unlicensed agencies usually do not follow the laws of debt collection. After all, they are already breaking the law by running an unlicensed company, fully knowing that it is illegal. You cannot expect them to follow the law. There are certain laws of debt collection laid out by the state and federal government that unlicensed agencies may not care about or be aware of. This can lead to potential issues and fines.
The bottom line is that you should not waste the opportunity to work with a licensed and experienced agency and go for an unlicensed one just because it is cheap. Not everything affordable is good for you.