The Debt Collector
Debt Collector – Collections Agent. Two terms that are familiar to millions of people. When you’re in financial trouble and have to deal with a collections company, you may be able to work with an ethical agent who will try to setup a reasonable payment plan for you. If you’re fortunate enough to get a person who works for a company that’s aware of the laws, is competent and fair, it’s much easier to get through the situation. However, more third party debt companies hire people who aren’t ethical and routinely break the law. When you’re dealing with a company like this, you may not know what your options are unless you know the laws regarding debt collection practices and how they can protect you.
The Fair Debt Collection Practices Act was passed by the U.S. Congress in order to protect the average person from unfair collections practices. Thousands of complaints are lodged at Attorney General’s offices around the country every year. Some consumers have filed lawsuits because of the methods used by some third party collections agencies. Consumer debt is defined as any personal debt, which could be an auto loan, mortgage payments, credit card debt, or medical bills. The creditors reasoning for using third party agents is that it costs them less to have someone else doing the legwork for them.
The FDCPA has strict laws regulating the practices of collections companies, and what a lot of consumers don’t realize, some of the people hired by these companies are less than ethical, and will do anything to get you to pay up, including making threats which is illegal, and could cause the company to be involved In a lawsuit against them. When anyone is under a lot of emotional stress due to a death in the family or unexpected expenses, they’re more vulnerable and could be taken in by these people. Very strict laws are in place against harassment and stalking, and if you you’re a victim of either, get help immediately.
Unfortunately for a lot of consumers, these so-called debt collector, collection agents are nothing more than con men and you have to know how to differentiate the two. If the debt is legitimate, the collections agency must send you verification by mail and include their company name, mailing address, and contact information. They must also include detailed information about what the debt is for and the exact amount. In one case, a person got a call from a so-called debt collection company. The “debt collector” asks the man’s name, which he confirms. He names the person’s father and half-siblings that this man had not seen for years. He then makes up a story about a relative who died in an accident and owed $14,000. When the person asks the so called collections agent why he’s calling him, he comes up with a story about how the relative who died signed a contract with the stipulation that if he died, the first relative that’s available would be responsible for paying off the debt. As far fetched as this may seem, some people would actually fall for it, and that such a contract is legally binding in the state the relative lived in.
When the potential victim in this scenario got mad, the “debt collector” said that he didn’t have to lose his temper. All he had to do was pay off about $200 and they’d call it even. When the relative of the deceased person lost his temper, and asked if the collections agent thought he was stupid, the con man got flustered. The person who was called fortunately knew the law, and if he had paid anything, even as little as $5.00 toward the debt, it could have been used as grounds that the man was claiming responsibility for the debt and a civil court could have held him responsible for paying off a $14,000 debt that wasn’t his responsibility.
Another scenario involved a person who received an official looking letter supposedly from the state of Missouri regarding back taxes. This person had never lived in that state, but was informed if he didn’t contest the document, he’d be legally obligated to pay it. He called the company who had the last four digits of his social security number. They asked for additional verification and he said he wouldn’t tell them anything. They requested his tax returns for the previous few years which he fortunately refused to do. They requested other personal documents which he also refused. He’d never lived in Missouri. He finally hung up and checked online to find out about any tax scams. Sure enough it turned out he was contacted by a scammer . Fortunately he didn’t send them any personal documents. A common scam is to send letters to everyone with the same last 4 digits on their social security number, which looks like an official letter. If anyone is pressured enough and pays them off, the scammers win.
One of the ploys a debt collector, collection agent will use against a person being sued for non payment is to hire “appearance lawyers” who will appear in court and attempt to convince a person to work out a payment plan. They’re usually paid $50 to $100 for each of these court appearances. Unfortunately, a lot of people fall for this scam. Another is to hire anyone who’ll take the job, and has no experience whatsoever. Many of them are less than ethical, and will use any ploy imaginable to get people to pay. A lot of them only stay on the job briefly before moving on to something else.
One recent description of a debt collector on an online job site stated that debt collectors are hired to protect the assets of a company, recover assets, and collect delinquent accounts. However, there are hundreds of horror stories about people who have been harassed and threatened by unscrupulous “collections agents.” Many times a company will hire kids in college who don’t mind being pushy. They’re trying to pay tuition, and get good commissions for being aggressive.
If you ever get a phone call from a so-called debt collector, collections agent, make sure that you’re dealing with a legitimate company. Ask for a letter from the company with their address, phone number, and the contact information of the person who contacted you. If you’re uncertain about the debt collector, verify who they are before agreeing to anything. The FDCPA was signed into law to protect consumers. Make sure you know your rights before agreeing to make payments to anyone. Many attorneys will do a free consultation, so if you’re uncertain about who the company is that contacted you, or if you aren’t sure what your rights are, contact an attorney before taking any further action.
Now that you learned about collection agencies and debt collectors and how they operate, it is time to learn about the laws that govern them. We’ll start with The Federal Fair Debt Collection Practices Act (aka, the FDCPA). But first, let’s take a look at the Top 20 ILLEGAL Debt Collection Tactics that creditors use.