Should I Sign up With a Collections Company to Get Paid on my Lien?
In this video we're going to answer the question of whether or not you should pick up the phone and assign your rights to that collection company that called you out of the blue and said they were going to get you paid. Let's get started.
So, you're sitting in your office. You're owed some money on a job. You decide to record a lien. Now that lien is in the public record. And out of the blue, you get a phone call from someone maybe out of Texas? And they say they've got some inside track on how they can get you paid. Maybe they know the owner or the contractor. Maybe they're going to force someone into bankruptcy. Maybe they're representing other folks that are owed money on that job. But whatever story they give you, they tell you, don't worry. It's not going to cost you anything. We'll send you some paperwork. We'll get you paid in a few weeks, maybe a month or two. So, because it sounds so good, you decide to take them up on their offer. And what happens? Maybe you don't hear from them again.
Maybe they ask you for some money because they've incurred some cost that were unexpected. The end result is you may lose your rights, and I'm going to tell you story about a client of ours that not only lost his rights, but didn't get any money. It was an electrician, and he got this call out of the blue from a collection company in Texas. They sold him this great story of how he was going to get paid, and it wouldn't cost him anything. So he signed the papers, and what he didn't realize is that the paperwork that he signed actually gave his rights to them so that they owned his lien. They picked up the phone. They called the owner. They got a check for substantially less than the full amount. They took that money. They satisfied the lien on his behalf, and then they dodged his calls. They did that to him and many others.
He came to us. Unfortunately, it was too late to get him paid, but we now have a judgment against this collection company in Texas. This should not be you, and you can avoid it. How do you avoid it? Number one, when it's too good to be true, it probably is. Number two, when you decide that you're going to get paid because you're going to put a lien on a piece of property or record a bond claim, use a licensed construction attorney to help you.
Do not fall for the schemes that are out there from folks calling you or sending you emails. Finally, if you decide to use a service like this, verify that they are, in fact, licensed collection companies in Florida. You can go to the Florida Insurance Commission website. You can do a search by their name, and they should be registered as a commercial collection agency in the state of Florida. And if they are, they've posted a bond, and now there's recourse. You can pick up the phone and call the insurance commissioner, and they will help you solve this problem if you have a problem with this collection company.
Now, our client hopefully will be able to recover his money because now we have a judgment against these people that took it, took his lien and took his money. But, let this be a lesson to you. I hope you can put this information to good use. If you have construction law questions, send me an email, [email protected]. Otherwise, check out TheLienZone.com for the podcast. We have an app that helps you calculate lien and notice deadlines. Also, follow us on social media. Thanks, see you next time.