Debt Collection - Facts vs Force
The title 'debt collector' is self explanatory and clearly states what
such a person does. If you owe money to a lender and there has been a
delay in payments over the past few months the lender may choose to
either use their in-house service or employ a specialized debt
collection service provider.
If it is a third party i.e. a specialized collection agency, they
usually purchase your debts for less than you owe from your lender and
then the debt becomes theirs. Therefore, they then have vested
interests in settling the same.
Having a debt collector knocking on your door or receiving his call a
number of times a day can be distressing. There is however a way out of
the problem. Put in one word it is 'awareness' - an awareness of your
rights and safeguards. This will control the debt collectors and not
the other way around.
Debt collectors while doing their job may tilt towards being forceful
and intimidating. As a defaulting borrower, you are already on a back
foot. However, you can still stand firm and not give in to their
demands. Here is how:
The job of a debt collector is to advise you that you owe some monies.
He cannot threaten, abuse or intimidate you by threats of harm or
police action.
A debt collector may establish contact with the borrower in person, via
sealed mail, telephone, fax or a telegram. He cannot use a postcard as
it can be read by anyone. He cannot also call before 8 a.m. and after 9
p.m., unless you agree on a time.
The first call from the debt collection agency has to be followed up by
a written statement clearly stating your creditor's name, the actual
amount owed and what action he can take if you do not acknowledge the
money owed. This written letter must be accurate and have no false
information.
Also note, the debt collector cannot contact your relatives, friends,
neighbor etc unless to obtain your contact information. In such
circumstances he cannot inform them that you are in debt. You are
entitled to your privacy even if you are in default.
Remember you cannot and should not force the debt collectors to coerce
you into making payments as per their demands. A number of collection
agencies work on the premise that the best way to get the payment is to
make sure that it becomes number one on your priority list. While you
know you owe the monies, you have to ensure that you clearly prioritize
your finances. If there is a greater and pressing need for your money,
like for medicines or food then you must allocate the funds accordingly.
You can choose to directly negotiate with the debt collector or appoint
an attorney instead. If you deal directly, do not feel compelled to
offer private information that can be misused to force payments from
you. Example, details of where you work, your personal account
information and the like.
Always seek written communication from the debt collector instead of
phone conversations. This will put pressure on the collector to be
polite and accurate in his dealings with you. All agreed terms and
conditions will also be clearly outlined. The original amount owed,
along with any interests and fees should also be clearly mentioned. It
is also a good idea to tape your phone conversations after having
explicitly informed the collector when he calls that the same is being
recorded.
If your debt collector continues with his forceful methods you have a
right to redress. You can complain to the concerned authorities within
your jurisdiction and obtain relief.
The best way to counter force is through knowing the facts and standing firm on them.