Your business has the right to collect on past-due accounts.  There are requirements which should be followed, and may vary by state.  You can learn what actions you can take by:

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• understanding that Consumer credit laws affect preliminary debt collection methods, and the Truth-in-Lending Act regulates the amount of interest that can be charged on overdue payments.
• learning about local collection bureaus and credit bureaus who offer services to help businesses set up a reasonable credit policy and procedures. In most cases it is a free service.
• following proper procedure for accepting checks. Your local County Attorneys office should be able to give you a training session or at least proper information.

Most past-due accounts should be collected within 90 days. By 120 days specific actions should have been taken. After the original collection letter goes out, a notice should be sent if the due date has past. Notices should be sent out at 30/60/90 day intervals. And phone calls should be made to reach the past-due customer. If the customer makes no arrangements to pay and there has been no response, then there are a few additional options a business has the right to take:

1. Send out a notice with the consequences that are now being taken if not paid (such as turning it over to a collection agency).
2. Turn it over to a collection agency
3. Take it to court yourself

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