Help – The Debt Collectors Are Calling
When you get a call from a debt collector it is because you have a bill that has gone unpaid for several 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.
Companies hire debt collection agencies to pursue money that is owed to them. These agencies realize that if you have not paid the bill for several months, even though you have received notices and reminders, you are probably unlikely to respond to them. That is why they tend to use a more aggressive approach when calling debtors. You are not their customer, just a debtor, a label you should try to avoid if at all possible, as it is not an honorable one.
Debt collectors are often permitted to report your information to the credit reporting agencies. These are the people responsible for tracking your bill-paying habits. Your credit record is used to indicate how good you are at paying your bills, and is referred to by mortgage companies, car dealers and other finance companies to determine your credit-worthiness.
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. 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.
Because there are Federal regulations governing the debt collection industry, their treatment of you should follow a particular code or guideline, although of course there are some agencies who will flaunt these regulations. 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. Whether you are in the right or not, keep a detailed copy of all paperwork and any communication between the company or debt collectors and yourself.
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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