What Do The Debt Collectors Want?
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. If you have ignored the letters from the company that you owe money to, and have made no attempts to contact them or endeavor to pay the bills, you are considered a bad 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. To a debt collector, you are not a customer. You are now called a debtor. This is not something to be proud of, or sought after, and you should try to remain a paying customer before it gets to this stage.
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.
There is very little you can do to avoid debt collectors, as they have various resources at their disposal to track you down, even if you move house. As annoying as it may be, debt collectors will use any means to find you, no matter how humiliating it may be for you, even calling your employer or canvassing the neighborhood to find you and do what they have been hired to do. 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.
The debt collection industry is regulated by Federal rules and guidelines to ensure that your rights are not violated too, despite some disreputable companies’ methods. Any dispute regarding the existence of the debt should be addressed with the company, or can be worked out with the assistance of the debt collector. 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.
One method of debt collection that contravenes the Fair Debt Collection Practices Act is the use of threats to recover the debt. Report any violations to the Better Business Bureau.
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