Help – The Debt Collectors are Calling

If you receive a call from a debt collector, it means you have an unpaid bill – that has been in arrears for possibly a few months. You are now considered a bad debt, usually after attempts by the company to contact you have been ignored and you have not tried to contact them or make some sort of payment against the debt.

Debt collection agencies know that you will avoid contact with them, just as you have with the company you owe money to. They tend to be more direct and forceful in their efforts, as they have been hired to do a job. Yes, at this point you are no longer considered a customer, you are a debtor. This is not a badge of honor and it is a label you should do everything you can to avoid.

A credit reporting agency will keep tabs on your payment habits and regularity, and often rely on the information they receive from debt collection agencies to do so. Credit card issuers, car dealers, mortgage companies and even stores use the information from your credit report to determine whether you are a customer who is likely to pay their bills.

Generally, there is no escaping debt collectors, who use a number of methods to find you – even if you move house. They will even go so far as to call neighbors or your employer to track you down. Yes, it is annoying and can even be humiliating. But that’s their job. They have been hired to collect the money that you owe. Many collection agencies only earn their fee when they have collected money from the debtor, so it is in their interest to do everything possible to find you and convince you to pay the debt. One of the reasons they are so determined to find you is that they only get paid for their services once you have paid off the debt.

Although there are some disreputable agencies, the debt collection industry is actually heavily regulated at the Federal level. There are rules that guide their conduct, the way they treat the debtor, and how often they are allowed to call you. If there is some confusion about the debt, either the amount or whether it actually is your debt, you should contact the company immediately. The debt collectors may be able to assist with sorting this type of situation out with you. In order to protect your rights, make copies of all communication between the three parties, and keep notes on telephone calls and meetings wherever possible.

If the agency is using threatening tactics against you, even if you do owe the money, you should immediately report them to the Better Business Bureau. This is a violation of the Fair Debt Collection Practices Act, the federal law that guides the practices of the debt collection industry.

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Originally posted 2010-10-18 18:14:55.

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