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 are hired by a company to collect the money owed to them. Debt collectors are more aggressive in their efforts, as they know that you have in all likelihood been avoiding any contact with the company, and are likely to ignore their efforts as well. 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.

Credit reporting agencies often receive their information from debt collection agencies. These agencies keep track of your credit record. 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. Because they have been hired to find you and collect the outstanding money, they will resort to embarrassing you by contacting your employer, neighbor or even your child's school in order to track you down. They will do everything they can to find you and collect the debt, as that not only provides their customer with better service – it is often the only way they can get paid for the job they have done.

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 of the tenets of the federal law governing the debt collection industry is that agencies may not use threatening tactics to get you to pay the debt. Report this violation of the Fair Debt Collection Practices Act to your local Better Business Bureau immediately.

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Originally posted 2010-07-15 02:03:24. Republished by Blog Post Promoter

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