As more and more states pass laws allowing the legal sale of marijuana and other cannabis products, more businesses are entering the legal sale of cannabis products. Like other industries experiencing rapid growth, the cannabis industry faces a wide variety of new businesses, some of whom may end up in debt to various agencies. Complicating the matter further is a network of local and national laws that must be followed by all parties involved in the legal cannabis industry. This is true for both medical and recreational cannabis businesses.
Debt Collection Lawyers
A number of companies have started providing businesses with commercial collection services specific to the cannabis industry. These businesses provide attorneys to handle the collection of marijuana-related debts. These companies employ collectors who come from various sectors of the cannabis industry. They partner with collection firms to ensure that all recreational and medicinal laws are fully understood – these partners range from growers to dispensary owners. These collection companies have worked in other areas of debt collection before switching to cannabis-related collections. These collectors provide investigation, skip tracing, negotiation and settlement services.
Like collection law firms, collection agencies can assist clients to recover debt from delinquent business owners. Many of the methods agencies use to collect debts are the same as the law firms’, except if the debt remains unpaid, then they cannot proceed to the courts to recover monies owed whereas collection law firms could take the case to court. Customers will have to hire a separate law firm to take the debtor to court. In some cases, it is cheaper to hire a collection agency, but this varies from agency to agency.
The Law And Cannabis
Though the laws surrounding the collection of debts in the cannabis industry are no different than the laws involving other industries, there are a number of differences that anyone involved in the cannabis industry must face. Since the federal government still classifies cannabis and marijuana as a drug, business owners cannot legally deposit their earnings into FDIC regulated banks. This means many businesses operate completely on a cash basis. This makes bookkeeping more difficult and the opportunity for money owed to other businesses to disappear. These operators then run the risk of falling into debt and becoming the target of a collection agency. Hawaii and Colorado are teaming up to implement a cashless payment system called CanPay in the hopes to make the collection of money more traceable and safe. California is also in the process of creating new laws to provide for more safe sales of cannabis. Ultimately, the industry will be able to regulate new business owners making the necessity of debt collectors no more common than any other industry.