Debt Collection Los Angeles - Cedar Financial

Your Local Los Angeles Debt Collection Experts

Recover more with our “People-First” approach.

Los Angeles is one of the toughest cities for debt recovery. That’s why it’s so important to hire the right agency the first time. Headquartered in LA, Cedar Financial offers:

  • Over 30 years of Los Angeles collections success
  • Custom campaigns for fast dispute resolution and payment
  • Experienced in-house creditor’s rights attorneys in LA

Whether your claim is large or small, consumer or commercial, new or old, we can help.

See why Fortune 500 companies trust us with their accounts in Los Angeles.

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Top Challenges in Los Angeles Debt Collection

California State and FDCPA Compliance

California is known for its extended consumer protection laws, which can make recovering funds in Los Angeles more challenging. In addition to the federal Fair Debt Collection Practices Act (FDCPA), California debt collection agencies must adhere to the California/Rosenthal Fair Debt Collection Practices Act and the California Consumer Privacy Act (CCPA).

To avoid damaging your reputation, it’s important to hire only a licensed collection agency in Los Angeles experienced in navigating this strict legal landscape. An accredited member of ACA International and the California Association of Collectors, Cedar Financial is a trusted partner, maintaining the highest compliance standards in the industry.

Contact us today to learn more about how we can protect your business while achieving some of the highest recovery rates in the industry.

Short Statute of Limitations

Los Angeles has one of the shortest statute of limitations in the United States: four years for all debts and two years for oral contracts. The Rosenthal Fair Debt Collection Practices Act also requires debt collectors to inform debtors if their debt has become time barred.

Hiring a professional Los Angeles collections agency earlier in the recovery process can help you collect what you’re owed before time runs out.

At Cedar Financial, we make it easy to start collecting on your claims. Simply request a quote, place your claims, and our courteous staff will immediately get to work establishing meaningful contact with your debtor(s).

Identity Theft Disputes

Year after year, California makes it to the list of top 10 states with the highest rates of identity theft. This means massive headaches consumers and creditors alike, as it requires verification of the debt and fraud investigation, taking up valuable time and resources.

Cedar Financial’s veteran agents are trained to quickly and diplomatically separate genuine disputes from delay tactics, minimizing the time spent investigating false cases, while maximizing recovery on hard-to-collect accounts.

High Levels of Debt

“Angelinos” have some of the highest levels of debt per person – that includes credit card, mortgage, student, and auto loan debt. With one of the highest costs of living in the U.S., it can take longer for Los Angeles debtors to pay back their debts.

The good news?

While most Californians take longer to pay back debts, they are also more responsible in meeting monthly payments and have higher than average credit scores, making payment plans an excellent strategy for recovering your funds.

Cedar Financial patiently guides your customers to financial security with debt counseling and affordable repayment solutions. Our People-First Approach has helped many find stress-free, amicable solutions that work for everyone. Call 818-224-3800 today to learn more.

Submitting claims is fast and easy.

Litigation in Los Angeles

While every effort is made to resolve accounts amicably, sometimes a firmer approach is needed. Here’s what you need to know about the legal process in Los Angeles.

Los Angeles Statute of Limitations

California has one of the shortest statute of limitations in the U.S. at four years for credit card debt or written contracts, and two years for oral agreements.

If litigation is part of your collection strategy, you’ll want to keep track of how much time has passed to avoid the account becoming time-barred. Once obtained, foreign and domestic judgments are enforceable for up to 10 years, at which point they may be renewed.

As your one-stop-collection-shop, Cedar Financial carefully monitors every account from start to finish so you don’t miss any important dates.

Our Los Angeles debt collection lawyers will review any efforts-exhausted claims for collectability in litigation so you can make timely, informed decisions on how to move forward with your claim(s).

Prejudgment Writ of Attachment

Before filing a lawsuit, it may be beneficial to seek a prejudgment writ of attachment. This will create a judicial lien, allowing you to freeze the debtor’s assets pending the outcome of a trial or settlement.

Prejudgment writs of attachment encourage your debtor to settle by preventing them from transferring assets before a decision is issued, helping you ensure that there will be something to recover once a judgment is obtained.

Filing a Lawsuit in Los Angeles

Under the California Fair Debt Collection Practices Act, you must file suit in the county where the debt was incurred, where the debtor lived when the debt was incurred, or where the debtor lives now.

Once you file a lawsuit in Los Angeles, you must serve a notice, or Summons and Complaint, to the debtor notifying them of the lawsuit and giving them time to respond. Failure to send notice will result in any judgment being uncollectable. Assuming the debtor does not dispute, you can then obtain a judgment and proceed to collect on it.

Cedar Financial can simplify the litigation process for you. Our experienced Los Angeles debt collection attorneys handle all aspects of legal collections in California, including skip tracing, asset location, filing a lawsuit, obtaining a judgment and enforcement. Learn more today.

Enforcing the Judgment

Legal collections don’t stop at obtaining a judgment. The next step is enforcement. In Los Angeles, you have the legal right to several types of remedies:

  • Wage garnishment – the debtor’s employer deducts a portion (up to 25%) of their wages to pay the debt.
  • Account levy – creditor with a writ may have a levying officer take money in the debtor’s account and apply it to the judgment balance.
  • Lien on real property – places a claim on property owned by the debtor, so that if they sell, they must pay the judgment. May prevent them from selling or refinancing their home if the value is insufficient to cover the debt.
  • Seizure of personal property – lien holders of personal property may demand the sheriff seize and auction property to satisfy the lien.

As your dedicated LA debt collection partner, Cedar Financial follows through with your judgments for the best chance of payment post-litigation.

Should the assets identified no longer be available, our post-judgment team will record an Abstract of Judgment in Los Angeles county and periodically review the debtor’s assets, credit, and overall ability to pay. We also keep track of renewals so your judgments won’t expire.

Recover more with top debt collection attorneys in Los Angeles.

Quick Facts About Debt Collection in Los Angeles

Open Invoices

Unpaid Invoice Interest Rate Up to 12%
Can Collection Fees be added? Must be included in contract to be added.
Statute of Limitations/Prescription Verbal agreement: two years.
Written agreement: four years.


Post Judgment Interest Rate Up to 10%. 7% if debtor is state
or local government entity.
Judgment Expiration 10 years
Can judgment be renewed? Yes

Local Experts in Collections

We offer on-the-ground representatives in Los Angeles who understand the debt collection practices that work to support full recovery of your funds.


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Licensed to collect in all 50 U.S. states and over 150 countries, with local offices in:

FAQs About Debt Collection in Los Angeles

Why should we ask you to collect our debts in Los Angeles?

Headquartered in Los Angeles county and nationally licensed, we are the experts in California debt collection. Our professional Los Angeles debt collectors are trained in local laws, including the California/Rosenthal Fair Debt Collection Practices Act (CFDCPA) and the Fair Debt Collection Practices Act (FDCPA), for high levels of compliance and fast results you can count on.

What does it cost to hire you to recover the amount due to us?

For pre-legal services, we work on a “no collection – no fee” basis, so you will only pay when your funds are recovered. For legal services, we offer low-cost options.

What is the minimum amount or number of accounts you will accept?

We have no minimum value or volume that is required to place accounts.

What type of debt do you service?

Specializing in both local, domestic U.S. and international collections, we provide services in Education, Healthcare, Commercial, E-Commerce, Government and Legal industries. Our primary services are Commercial B2B (business to business) and Consumer B2C (business to consumer) accounts.

How long will your amicable (non-legal) debt collection process take?

Just as every claim is different, the circumstances for each consumer varies as well, resulting in an unidentifiable certain set of time. Extenuating factors such as the age of the account and the type of debt being collected upon also weigh into how much time it will take to close our agreement.

What is the typical debt collection process?

Once we receive your accounts and the proper documents to validate the claim, our representatives will begin by skip tracing the accounts to locate the debtor. We will then immediately begin working the account via phone and mail, and issue a written demand notice allowing 30 days for debt validation as required by the FDCPA.

What is the statute of limitations in Los Angeles, for older debts?

The statute of limitations in Los Angeles is four years for credit card debt or written contracts, and two years for oral agreements.

Do you provide field services?

If your debtor is unresponsive to letters and phone calls, we provide on-the-ground field services for investigation, skip tracing, in-person visits at your debtor’s residence, asset searches, and more.

Do I need to provide documentation?

Yes, we must be able to validate the debt before we can begin the collection process. Validation documents include, but are not limited to, contractual agreements between you and the consumer, a bill or invoices for exchanged goods or services, as well as, legal court judgment documents.

Do you offer litigation services if you exhaust all amicable collection efforts without recovery?

Yes, we offer in-house legal counsel, plus vetted attorneys in each major U.S. city and worldwide for any claims outside our jurisdiction. Once all amicable collection efforts are exhausted, we will evaluate the account for legal action at no additional cost to you.

Are collection fees legal to be added to the balance owed?

Yes, but they must be included in the contract.

* The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.

Cedar Financial