This is a general guide and not intended as legal advice.
What does Lien Enforcement, Inc do?
Once your accounts are assigned for collections, Lien Enforcement, Inc sends the registered owner’s or responsible party's information to outside services in an effort to obtain current addresses and phone numbers. With this new information we will mail out notices to inform the registered owner or responsible party that the account has been assigned for collections. The registered owner or responsible party then has 30 days to dispute the validity of the debt and or request verification of the debt from Lien Enforcement, Inc. Once the notice has been mailed and received by the registered owner or responsible party, our collectors will begin to call the registered owner or responsible party and request payment in full of the debt.
When should the deficient balance on a lien sold vehicle be submitted for collection?
The deficient balance on a lien sold vehicle should be submitted for collection once the vehicle has been either sold at auction, to a private buyer, to a junkyard or to a scrap metal company. By disposing of the vehicle you have exhausted all efforts to recover your losses. Any amount that is outstanding after the disposal of the vehicle can be submitted for collections.
Additionally, accounts are considered delinquent when they have not been paid in accordance with your terms. By forwarding the accounts to collections as soon as the vehicles are disposed of you, will increase our chances of recovering the debt. Colllection attempts made during the first 30-90 days after the vehicle clears the lien process are the most effective. Beyond 90 days, recovery percentages begin to drop a significantly.
You should turn over the account once you have exhausted your own collection efforts.
How do I submit my accounts for collections?
Call our office at (408) 380-8670 or e-mail us at Info@LienEnforcementInc.com to request a copy of our service agreement to begin the account setup process.
Once we have received your agreement, your account will be set up we will be ready to receive placements from you.
To submit your accounts for collections: What documents are required by Lien Enforcement, Inc to pursue the debt? Lien Enforcement, Incorporated
There are several different forms that can sent to enable us to pursue the debt.
The most common form submitted is the Notice of Pending Lien Sale for Vehicle Valued $4,000 or Less, also known as (REG 668). This form lists all registered owners, legal owners, and interested parties on the right hand side of the page in three separate boxes. It also provides details on other pertinent information that is required for processing the debt. The only item that is missing from this form is the amount that the vehicle was sold for, which can be handwritten in the bottom right hand corner of the page in the interested parties box. Alternatively, you can provide us with the amount owing on the claim.
The second most common form is the Certification of Lien Sale for Vehicle Valued $4,000 or Less, also known as the (REG 168A). This form “normally” lists all registered owners, legal owners, and interested parties, on the backside of the document. If it is not located there, then it is generally the next page in the Lien packet. It also provides detailed information that is pertinent to processing the debt. If sending this page as supporting documentation, please be sure that you have not included the name of the new registered owner, as this page is used for transferring the vehicle to a new buyer. We do not want to disclose the new location of the vehicle to the previous owner. It is best to make a photocopy of this page before filling it out.
Otherwise, you can simply black out the information before sending it for collections.
Supplementary to either of these forms being sent, we suggest that you include a copy of the DMV Vehicle History Report.
You can mail, fax, email, upload via FTP, and depending on who your Lien software provider is, forward accounts directly from your Lien software. If you email or upload excel spreadsheets or other files to us, copies of the above mentioned documents will still be required to aid us in our collection efforts and help support your claim.
If a judgment has been obtained against the debtor, please provide us with a copy of that as well. If at a later time a lawsuit is required to begin the garnishment of wages or other levys at our disposal, we will need a certified and/or exemplified copy.
Once Lien Enforcement, Inc starts the collection process, what are the chances of success?
Our recovery average is currently forecasting at around 8.4% during the first year of collection. The sooner you place your accounts for collection, the greater the likelihood we will be able to locate the Registered Owner's current residence and begin negotiation to collect your acccounts.
Does Lien Enforcement, Inc collect interest on the debts?
Generally, yes. Any agreed upon rate should be added to the account at the time of submission. If it is necessary to file suit, interest will be part of the legal demand. The rate varies from state to state.
Can I add Lien Enforcement, Inc costs for collection?
Generally, No. It is illegal to add to the debt any charge which is not included in your written contract with the original creditor (Registered Owner). To clarify this, we understand you are lawfully operating under the direction of a government entity to impound the vehicle, but these fees cannot be added because as the law is currently written if you do not have a written contract with the registered owner’s signature agreeing to the tow, the fees cannot be added because the original creditor (Registered Owner) was not made aware of the fee prior to entering into the agreement with the tow company.
If a case goes to court, what do I have to prove?
In the event that litigation is required on account you would need to prove that an agreement (either express or implied) existed between you and the debtor (Registered Owner). You will also be required to provide the terms of that agreement, that payment was demanded, and that payment has not been received.
Typically, a copy of the tow tag authorizing the tow, the Lien paperwork, and a printout of the collection notes from our software is enough evidence to support the claim in court.
Do I need to provide a witness if a lawsuit is filed?
When the debtor does not contest the suit, a default judgment can be obtained without the necessity of someone from your company appearing in court. Some courts will require the submission of an affidavit to prove the claim before a judgment will be issued. If your claim is contested by the debtor, it will become necessary for someone from your business to appear in court merely to inform the court that the debt is due and payable.
Quite frequently, collection cases are resolved long before they ever go to trial.
Why should I send my accounts to Lien Enforcement, Inc for collection?
Many collection agencies have the ability to collect your debts. Fewer collection agencies actually have experience collecting on the deficient balances of lien sold vehicles. It requires intimate knowledge of the towing process to correctly explain to the registered owner or responsible party how the debt came to fruition.
Lien Enforcement, Inc is the only collection agency that specializes solely in collecting this type of debt. As specialists, we are highly educated and familiar with the common issues surrounding these debts. This knowledge provides a significant advantage when negotiating for payment in full on your accounts.
What is the difference between "in-house" collections and 3rd Party Collection Agencies?
3rd Party Collection agencies are regulated by the Fair Debt Collection Practices Act (FDCPA), which is administered by the Federal Trade Commission (FTC). The FDCPA details strict guidelines designed to protect consumers from abusive, misleading and unfair debt collection practices.
"In-house" collectors are usually employed by you, the credit grantor and are covered by the FDCPA under certain circumstances.
PO Box 3000E
San Jose, CA 95156
(408) 380-8670
FAX (408) 380-8660
Info@LienEnforcementInc.com