Why We Don’t Send Demand Letters

In this week’s video, Parris D. Trimble, Esq. discusses why Greenbaum Law Group, LLP does not send demand letters for commercial debt collections, filing the lawsuit instead.

Full Transcript

Hi, my name is Parris Trimble and I’m an attorney here at Greenbaum Law Group. Greenbaum Law Group is a commercial collection and judgment enforcement firm. 

You might have seen some of my other videos where I provide tips on how to write a demand letter and how to make the collection phone call. In those videos, I state that we don’t do that here at Greenbaum Law Group, now why is that? We have found that in general, phone calls and demand letters aren’t that effective when it comes to commercial debt. 

Let’s say that we had a hundred commercial debt cases, and we made phone calls and sent them add letters to all 100, maybe 5 to 10 would settle. Those are really great odds. Let’s think about this for a minute. Let’s say that you receive a demand letter in the mail, what do you typically do? Most people here in California know at least three attorneys on a first-name basis, in fact, you may even have an attorney in their family or in your close network of friends. 

So you call your attorney friend and say hey I received this demand letter, can you write a response? Typically most of the time they will. Perhaps they’ll say oh we didn’t receive the invoices or oh the work wasn’t done properly. Again this is just dragging on the process and not getting you any closer to getting paid. 

Now, let’s look at another scenario. Instead of sending a demand letter we file a lawsuit, and the lawsuit is personally served on the debtor. So now the debtor picks up the phone and calls his attorney friend and the attorney is much less willing to jump in and represent the party in the action, especially without being paid. We find that collection letters and phone calls simply aren’t that effective, and we jump straight into filing a lawsuit. 

If you need a collection attorney and you have a commercial debt over $10,000 here in California, give us a call at 1 800-519-0562 or online at www.collectionlaw.com