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Impact of a Lawsuit
This essay is published for informational purposes only. It is not legal advice, nor is it intended as a substitute for the advice of your attorney.
A customer’s credit can be seriously affected by a decision by one of its creditors to file suit to collect an unpaid debt. Filing a lawsuit is a matter of public record, something debtor companies normally try to avoid. Once such a threat is made, credit professionals must follow through or they will lose credibility and may be seen as indecisive and ineffective. The salesperson should always be notified of a decision to make a final demand for payment.
Copyright 2010 by Michael C. Dennis. All Rights Reserved