Minimize The Pain of Check Recovery

$350 million in bad checks are written each and every week. That fact alone makes bad checks a serious problem for American businesses. It is almost inevitable that, if your business accepts checks, you have been affected by this. As well as being stuck with bank fees for depositing a bad check - and the very real possibility that the bad check could impact your bottom line - there is the time, aggravation and cost associated with recovering the funds. It is often the case that recovering the check can incur more in costs than the value of the original debt. Inevitably, many smaller businesses write off bad checks, believing that they cannot afford to pursue the debt. However, there are a number of ways your business can fight back and minimize the pain of bad check recovery.

IT'S AN INNOCENT MISTAKE...

For small and mid-sized businesses, the first recourse is to call the customer and explain the problem. Don't immediately assume that the customer intended to defraud your business. It is often true that an innocent mistake has been made and a calm, reasoned telephone call will recover your funds and keep what may be a valuable customer. Please be aware that threatening a debtor with publicizing their name or notifying their employer is illegal, so speak only to the person owing the funds and stay cool !

PURSUING THE DEBT

In most States, you are required to send a certified letter to the check writer before you can institute court proceedings. You may request that the debtor also repays the bad check fee you have incurred. The check writer is usually required respond within 10 or 30 days. This varies by state, so please check with your State Attorney General's office. Again, a calm and reasonable tone often works well and will ensure you stay within the law. Reviewing the Fair Debt Collection Practices Act ( http://www.fair-debt-collection.com/fair-debt-act.html ) before you draft your letter or make a call is highly recommended.

While these two methods are time and cost-effective, if you have still been unable to recover the check the obvious next step is to institute court proceedings or hire a professional debt collection agency. However, these are time consuming and potentially expensive options and - for many small businesses - may mean that the cost outweighs the benefit. Nevertheless, there are alternative check recovery methods that don't have these possible downsides.

CHECK ENFORCEMENT UNITS

Some areas now have a check enforcement or check recovery unit that is part of the state or district attorney's office. These are not available in every state and the services provided do vary. In general, though, the check enforcement unit will investigate and prosecute the debtor on your behalf and you will receive the full face value of the check. Contact your local District Attorney's office to see if this service is offered in your area.

ELECTRONIC CHECK RECOVERY

A better all round option is to consider using one of the electronic check recovery services now available. There are many advantages to electronic check collection over traditional recovery methods, not least the fact that many of the companies offering this service charge no fees to your company. Other benefits include:

i) Increased Recovery Rates : The National Automated Clearinghouse Association (NACHA) reports increases in recovery rates by as much as 50% in comparison with traditional recovery methods.

ii) Low Recovery Costs: No bank fees for redepositing an NSF check electronically.

iii) Benefits to Customers: No need for customers to receive collection letters and calls or supply a money order or cashier's check.

iv) Fast Recovery Times: Traditional recovery methods can take between 30 and 60 days. On average, electronic check recovery takes 7 days, after which time the recovered check is deposited into the merchant's account.

v) Out of town checks are handled as quickly and easily as local checks.

While bad checks are a fact of business life, recovering funds owed to you is not the herculean task it might first appear. You can fight back and still avoid many of the headaches that have been traditionally associated with pursuing a debt.

Jason Schwartz is CEO of Creative CashFlow Solutions, a check processing company established in 1998. Learn more about their free electronic check recovery service here: http://www.ilovechecks.com/recovery/

---

Google News Updated : Thu, 16 Oct 2008 02:44:32 GMT Omar grows into Category 2 hurricane in Caribbean - The Associated Press BBC News Omar grows into Category 2 hurricane in Caribbean The Associated Press - 1 hour ago CHRISTIANSTED, US Virgin Islands (AP) - Heavy rains and winds pummeled St. Croix on Wednesday as the outer edge of powerful Hurricane Omar drenched the island, stranding motorists on flooded roads and forcing workers to shut down a giant oil refinery. Video: Hurricane Omar Nears Caribbean Islands AssociatedPress Omar Strengthens in Caribbean, Aims at Virgin Islands (Update4) Bloomberg United Press International - Washington Post Blogs - Bradenton Herald - Beaumont Enterprise all 2,958 news articles Publ.Date : Thu, 16 Oct 2008 01:42:51 GMT FCC report: White space devices work as "proof of concept" - Ars Technica CNET News FCC report: White space devices work as "proof of concept" Ars Technica - 3 hours ago By Nate Anderson | Published: October 15, 2008 - 06:08PM CT The FCC's Office of Engineering Technology has released its long-awaited technical report (PDF) on "white space" prototype devices, and the conclusion comes right up front: "At this juncture, ... FCC Chairman backs use of "white space" spectrum CNET News FCC Gives Whites Spaces a Boost New York Times CRN - NetworkWorld.com - The Associated Press - Wired News all 271 news articles Publ.Date : Wed, 15 Oct 2008 23:12:55 GMT Paramount to release fewer films, cut 25 DreamWorks employees - Los Angeles Times stv.tv Paramount to release fewer films, cut 25 DreamWorks employees Los Angeles Times - 46 minutes ago By Claudia Eller, Los Angeles Times Staff Writer Looking to cut overhead and operating expenses after the recent departure of DreamWorks co-founder Steven Spielberg, Paramount Pictures plans to release fewer films, consolidate operations and slash 25 ... Spielberg back in fold Financial Times Paramount cuts films, jobs Straits Times New York Times - AZ Central.com - Bizjournals.com - Reuters all 42 news articles Publ.Date : Thu, 16 Oct 2008 01:58:16 GMT As Rays Come of Age, Torre Likes Their Look - New York Times Vancouver Sun As Rays Come of Age, Torre Likes Their Look New York Times - 33 minutes ago By TYLER KEPNER LOS ANGELES - For the first 10 years of their existence, when they never won more than 70 games in a season, the Tampa Bay Rays faced Joe Torre more than any other manager. Rollins leads off Game 5 with homer MLB.com Rollins, Phillies lead Dodgers in Game 5 of NLCS The Associated Press USA Today - WDTN - Philadelphia Daily News - Washington Post all 325 news articles Publ.Date : Thu, 16 Oct 2008 02:11:08 GMT McCain, Obama get personal in final debate - The Associated Press Washington Post McCain, Obama get personal in final debate The Associated Press - 41 minutes ago HEMPSTEAD, NY (AP) - John McCain told Barack Obama to his face Thursday night, "You didn't tell the American people the truth" about a key campaign pledge as the two presidential rivals slung accusations at close quarters in the final debate of their ... McCain, Obama tussle over backing Bush’s policies Reuters Obama Widens Lead as Americans See `Serious' Crisis (Update2) Bloomberg TIME - Wall Street Journal - Austin American-Statesman - ABC News all 775 news articles Publ.Date : Thu, 16 Oct 2008 02:02:37 GMT Feds investigate failure of Washington Mutual - International Herald Tribune ABC News Feds investigate failure of Washington Mutual International Herald Tribune - 33 minutes ago AP SEATTLE: Federal authorities said Wednesday they have opened an investigation into the failure of Washington Mutual Inc., the largest bank failure in US history. Federal Investigators to Examine Washington Mutual New York Times Washington Mutual's Failure Under US Investigation (Update2) Bloomberg Reuters - Wall Street Journal - Seattle Post Intelligencer - ABC News all 87 news articles Publ.Date : Thu, 16 Oct 2008 02:10:47 GMT Maddon Sticks to ‘Plan,’ Giving Ball to Kazmir - New York Times National Post Maddon Sticks to ‘Plan,’ Giving Ball to Kazmir New York Times - 33 minutes ago By JOSHUA ROBINSON BOSTON - Tampa Bay Rays Manager Joe Maddon has always disliked last-minute adjustments. So when he threw the Boston Red Sox a curveball on Wednesday by announcing that he was changing his Game 5 starter, Maddon said it was always ... Rays will go with Scott Kazmir in Game 5 Los Angeles Times Rays continue Cinderella story Newsday The Star-Ledger - NJ.com - MLB.com - Tampabay.com - SI.com all 718 news articles Publ.Date : Thu, 16 Oct 2008 02:11:08 GMT Automate Your Blogging RSS Parser

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Customer Feedback: Everyone has an Opinion - USE IT!

Have you ever been in a department store and known... Read More

Customer Service - Winning Customer Experiences

Winning Customer ExperiencesMuch research has been done on what the... Read More

The Reality of Customer Service in America and Best Efforts in Franchising, We Can Do Better

Yesterday I went to buy a sandwich at a franchised... Read More

The death of customer servie

The other day a reporter call to interview me on... Read More

Aint We Wonderful!

It may come as a surprise to you to discover... Read More

How To Boost Your Bottom Line With Two Little Words

I hate to sound like one of those cheesy get-rich-quick... Read More

Why Cant Microsoft Make Soft Packaging?

Why is it that Microsoft wants you to buy its... Read More

CRM = Customers (dont) Really Matter

CRM was supposed to bring companies closer to their clients.... Read More

6 Reasons Why Complaining Customers are Golden

With Some Tips on How to RespondTt has probably happened... Read More

Customer Service Tips for Mail Order Businesses

Can we be too good to our customers?... Read More

What Do Your Clients REALLY Think of You?

*********************************************Know Thyself - Socrates*********************************************I'd like to start this article with... Read More

Learn to Anticipate Your Customers Needs

This morning I was having breakfast with my good friend... Read More

Make Your Customer Your Friend

The simplest way to describe a 'durian' (pronounced doo-ree-ann) is... Read More

Small Business Customer Service Can Work Against You

Is the special treatment you designed specifically to keep customers... Read More

Mastering Challenging Service Situations

During the course of everyday business, many of you encounter... Read More

Automating Your Help Desk Workflow

Do you know you can open, answer, close and report... Read More

Customer Loyalty

Loyal customers are the foundation of almost every business. Going... Read More

Stand Out in Business the Write Way

When was the last time you received a handwritten note... Read More

The Added Value - Is YOU!

If there was a restaurant in your town that was... Read More

A New Way To Handle Complaints, Or Is It?

What a lot of money we have been wasting on... Read More

10 Customer Service Quality Statements to Measure up Against

It might sound quick and simple, to say how well... Read More

Why You Should Always Honour Your Guarantees - Even When The Customer Is In The Wrong

The Reason Why Direct Internet Marketers Have To Work So... Read More

Top 10 customer service tips

1. Hire people who have a service attitude. Some people... Read More

Poor Customer Service - Are Your Customers Driving Away Other Customers

Every customer you have is a word-of-mouth advertiser for you.... Read More

E-Business?s Best Friend: eCRM

From Ebay to the smallest home-operated start-up, e-businesses of all... Read More