How To Recover A Debt From The USA

How To Recover A Debt From The USA

Since our opening in 2004, Federal Management has helped thousands of businesses recover millions of pounds worth of unpaid debt. Our specialist Debt collection in the USA services have been a huge part of this.

The USA is the UK’s number one trading partner – An estimated £55.61 billion of trade was done in 2020 between the UK and the USA, making up the largest percentage of all UK exports. With this massive trade relationship, understandably the issue of unpaid debt arises on a regular basis.

In the modern day world of international trade, it has never been easier for companies in the UK to trade with companies in the USA. If a US based client does not pay, it can often leave the original creditor in a difficult position.

Federal Management has foremost knowledge of recovering owed money from debtors based in America. One of the key specialist services we provide is international debt collection.

Using our well crafted experience, we can recover your American debt in the most professional manner possible. Our service manages the whole process and takes local factors into account, such as time and cultural differences.

How Can I Enforce Debt Collection in the USA?

The best way to resolve a case of debt collection in the USA is to use an experienced debt collection agency. This is as opposed to trying to recover the money internally or using an expensive option such as protractile legal action via the American federal court system.

Many debt collection agencies can only recover certain types of debt. This is not the case with Federal Management. We have experience of working in most  commercial business sectors on an international scale.

A specialist debt recovery solution should always be preferred to a generic solution. Working with professionals can very often mean the difference between recovering what is owed or nothing at all.  In order for any case of debt collection in the USA to be as effective as possible, every factor must be taken into account.

For example, there may be cultural elements of a case that must be taken into account. Or, something as simple as the time difference between the UK and USA must be factored in. Even more importantly, a working knowledge of American national and state law must be possessed by the agency that is collecting the debt.

Differences of Debt Collection in the USA and the UK

In the USA, the ways that the Federal Government deals with debt recovery differ somewhat from the laws we have in the UK. There are also some differences set by the individual states. If your debtor is based in California, for example, then there may be a different set of rules to a debtor in New York.

In the UK, a debt can only be enforced within six years of its creation. If the debt is not recovered after that time period, it becomes “statute barred” and can no longer be enforced.

In the USA, this time period is usually between three and six years, but in some states, it can be as high as ten or fifteen.

As well as this, this statute of limitations period can differ depending on whether the debt is part of a set of categories. These are Oral Agreements, Written Contracts, Promissory Notes and Open-Ended Accounts. Each category of debt also has its own limitation period too, for example:

 

State	Oral	Written	Promissory	Open
California	2	4	4	4
Texas	4	4	4	4
Rhode Island	10	10	10	10
West Virginia	5	10	6	5

 

This demonstrates how important it is to find a debt collector that has a working knowledge of local laws and the way Debt Collection in the USA is handled.

What is the Process for Debt Collection in the USA?

Common sense will tell you that is can be more difficult recovering a debt from another country.  Very often, non payment can occur when your customer is based in another country as they may feel their is little you can do to recover monies you are owed.

This is a false belief as a proficient overseas debt collection agency with strategic localised partners will be able to recover a debt regardless of the debtor’s location.

Every case that Federal Management take instruction on is actioned to the maximum to ensure we give our clients as much chance as possible of recouping what is owed. Our comprehensive debt recovery process uses a multi-channel approach to ensure each collection activity is as effective as possible.

To make sure that we provide the best solutions possible, we have built a trusted network of global partners. For our debt collection in the USA service, we have agents in key locations across the country. As a result, we have a combined knowledge of hundreds of years worth of experience.

As well as this, our debt collection experts provide a completely free pre-action assessment of every debt. This appraisal takes every factor into account, and judges if a debt can be recovered. If the debt is able to be recovered, we will do so. Our process is proven and has a collection rate of 90% on all undisputed business debt.

Commercial Debt Collection in the USA

As mentioned earlier, it is now easier than ever to trade on an international level. As such, they find that more and more international customers fail to pay their invoices.

It is critical to recover the full amount owed in every case of debt collection. Failure to do so will only result in a businesses profits being reduced. This can, in turn, make it difficult or even impossible for them to fulfil their own financial commitments.

Federal Management understands the frustrations and worries debt collection in the USA can cause. As well as this, we recognise that it is important to preserve a business relationship as well as recover any owed money. Every case is resolved in an amicable manner, making future business opportunities viable.

Debt Collection in the USA – Professional Debt Collectors

The best way to recover money owed from a debtor in the USA is to instruct a professional debt collection agency. Federal Management is known as the UK’s leading international debt collector, and we have helped countless businesses recover what they are rightly owed since 2004.

Our process for debt collection in the USA provides an effective, low-cost solution that leaves no stone unturned.

Are you owed money by a debtor in America? By speaking with our friendly debt collection experts, you can take the first step towards recovering what you are owed today.

Regardless of whether your debtor is in Maine or Alaska, we can help collect what you rightfully deserve.

Posted on December 9, 2021