In my line of work, I run across a large number of judgment leads every week. It's my job to politely contact judgment owners once. I have found, that when creditors are "too big", they usually already use their own "in house" (attorneys, departments, or collection agencies).
I bring the judgment owner's attention to a particular recoverable judgment they own that has not been recovered. I tell them that for free, I can quickly refer them to an expert contingency attorney to recover the judgment. Usually, their response is that they handle all judgment recovery "in house".
It does not seem to matter to the large creditor entities, that their "in house" solution has never done anything to attempt to recover some of their enforceable judgment(s).
This is not only happening to me, I have confirmed this problem with hundreds of contingency recovery attorneys and other judgment recovery professionals. In my opinion, such creditors are not facing reality, and they are potentially leaving money on the table, not a great idea in today's economic times.
Recovering judgments has never been easy. For many decades, most entities and companies have had their own in-house recovery departments. Historically the reasons for this included:
1) Using an in-house team made sense because the in-house team could remain connected to the current customer base. Using outside collectors (if they did something stupid, embarrassing, or illegal) might damage relationships with their current (although late paying) customers.
2) Even if the entity does not have to be concerned about losing their customers, many companies, especially big companies, banks, and government entities, are concerned that using outside collectors (if they did something stupid, embarrassing, or illegal) might damage their reputation, or could make them liable in some way.
3) When the economy was good, judgment enforcement was more predictable, and an in-house team could recover judgments cheaper than by outsourcing them to recovery professionals.
4) Entities preferred to use their own controllable employees, rather than using various outside recovery experts.
Times are different now. Companies are downsizing employees, laws are changing to better protect debtors, and it's harder to recover judgments than any time in recent decades.
It's prudent to look at one's in-house solution, and keep the "in house" team focused on the judgments they are making progress on. Gone are the days where the "in house" team had the staff to recover every judgment.
In my opinion, the current reality is:
1) Most often, when an entity has a judgment against a former customer, that customer is now likely to be gone. Getting some recovery of some judgment money should be the entity's primary goal.
2) Contingency collection lawyers and judgment recovery professionals have improved and have kept current on changing laws. Local (to the debtor) experts know the laws better than far-away "in-house" teams could. The experts that recover judgments for a living have improved, so most potential risks are reduced. There is no longer a stigma when judgments is collected with ethical and legal ways.
3) Judgment enforcement is more difficult than ever, and debtors are moving to avoid creditors, making more judgments "unworkable" by conventional "in-house" teams.
4) Entities and companies are now attempting to outsource whenever they can.
5) The web helps to find recovery experts. A judgment broker makes it very easy to find the best expert to recover the most money on each unique judgment.
I think it is now time for large judgment owners creditors to face reality, and get outside help when their "in-house" team cannot recover a judgment.
It is a good idea, to keep your "in-house" people productive, and outsource if the judgment debtor absconds away, or when the in-house solution is not making progress on a particular judgment recovery.
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Mark D. Shapiro - Judgment Broker - Free leads for Judgment Enforcers and contingency collection lawyers.
http://www.JudgmentBuy.com - is the judgment super-site where Judgments quickly get Purchased or Enforced by the best!
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