One Bad Apple May Spoil The Whole Bunch
Debt collection is a growing business in tight times. Millions of Americans are just weeks away from bankruptcy, struggling to make ends meet. Now, debt collectors have new strategies to try to get what they're owed. And some of those tactics are suspicious.
Beth Givens, a privacy expert with Privacy Rights Clearinghouse, said she sees it as a growing problem. Debt collectors have begun telephoning other family members, friends, even neighbors, trying to locate debtors. Expect mail, emails, even voice mails and texts.
Givens wants people to know they do have rights, and that some of the new tactics may be illegal. "If you are in debt, know that there is a federal law that puts limits on the kinds of communications that debt collectors can have and it pays to really be informed," Givens advised.
Debt collectors can use references on credit applications and other paperwork to find people you know. You may have used them as references to secure loans or credit. Collectors can ask them where YOU are. But they don't have to give that information up. And they should know, collectors are not allowed to ask your friends to pay the debt for you."A collection situation is never easy for a consumer to deal with," advised Ken Paterson, who is with the Credit Advisory Service.
Paterson said people should also know their own loan companies may act as collectors. That certainly was a shock for Laura Wynn, whose car loan company called her sister."My sister called me very upset and said that somebody had called and wanted to know if she knew what kind of person I was and the lack of integrity that I held," she said.
Unlike Rapid Recovery Solution, who follows the FDCPA very seriously, a small majority of debt collection companies may not be adhering to federal law governing. Things used to be worse in the debt collection industry, but now it is simply a few bad apples ruining the whole reputation of ethical bill collectors everywhere.
If you do feel harassed, you can file a complaint with the Federal Trade Commission. Beth Givens said she expects collections to boom. "In this time of economic downturn, debt collection is a growth industry, so I think that we're going to be hearing more complaints about debt collectors." Your best bet-- don't dodge the debt collector's call. If they can reach you, they're less likely to start calling family and friends.
Well...what are you gonna do... Many of these "collection people" think that the debtors have ill intentions and are consciously trying to rip them off by not paying their loans. The actual fact is that the economy is as such now that there is an increasing number of people that aren't able to settle their loans in a timely manner. The "collection people" get angry and turn on the steam and these people who might just need a few more days to see it through. The worst case scenario is that these debtors get scared and make themselves hard to find which makes matters even worst.
Most of the time the soft approach certainly works better. I have seen industry participants who have changed their modus operandi and seen benefits in a lower number of bad debts just by getting the "collection people" to be nicer and more understanding.
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I'm glad that you agree with me. When I wrote it, I wanted people to know that not all collection agencies are bad. This isn't a cheesy plug, for my company but I do have the opportunity to work with debt collectors who treat other people like they would want to be treated; with respect, dignity and kindness. With this type of attitude, the debt collectors who work with me, yes they may work for commission, but they can also be quite helpful in making a repayment plan that will make both the debtors and creditors happy. The economy is slowly getting better, but the unemployment rates are still sky high, which is frustrating for collectors and debtors; creditors because they want their money, but debtors too, because most debtors want to settle their debt. But I fully believe that honey attracts more flies than vinegar.
Funny thing, just last night I was reading a medical journal that said that there was this highly irritable patient that went to the hospital.. Three doctors came, and simply started talking to him, and the agitated patient ignored them. The last doctor shook his hand, and the patient began to confide in that doctor. It is always important to treat people like people. Thanks for the advice! -Mal
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