Collection
Agencies, the Good the Bad and the Ugly
by Sandra Wellman
Collection
agencies are not as kind as creditors or lenders so therefore be
warned…the collection agencies are on the loose!
We
must understand how collection agencies work in order to find a
way to stop hassling phone calls and letters. Collection
agencies are a third-party source hired by creditors after the
creditor has made every attempt to collect a debt without success.
Collection agencies will search high and low and often play nasty
little tricks trying to hunt you down. If you changed your address
and typed your credit card into an online database, do not be
surprise when the debt you tried to outrun catches up with you.
Collection agencies tap into all types of resources in an effort
to hunt down debtors. Collection agency personnel search through
phone directories, online databases, make phone calls posing as
friends to lure the debtor in, sifts through the records at the
post office, and so on. Some
collection agencies have even threaten debtors by phoning their
home at late hours of the night, calling friends, family and
neighbors, and so on. There is no stone unturned when it
comes to collection agencies in a search to find a debtor.
Collection
agencies cannot take a post-dated check from you and cash it until
they notify you first. They cannot ask for postdated checks by frightening you with criminal suits. Collection agencies
are not permitted to send post cards in an effort to ask for
payment, nor can they label, or place symbols outside of an
envelope to press for payments. There are many areas of legalities
and illegal acts to look for if you are in debt and threatened
with lawsuits, liens, repossessions, foreclosures, and judgments.
Some of the most deceitful areas of illegal acts made by
collection agencies include false unlawful authorization forms, or
sending out a representative of the collection agency posing as an
officer of the law. Some creditors even harshly threaten debtors
by using profanity or harassing family members by imitating
government representatives. Creditors have even tried cashing
postdated checks and attempted to charge late fees for
insufficient funds. It is important that you learn your rights
when your credit is in jeopardy. If you are taken to court and
know your rights, you might see a way out of a bad situation. If
you know your rights you might even find a way to avoid court by
taking another route to stall your payments. If you suspect you
are heading down a bad credit path, then it is important to
document all communications between collection agencies, lenders,
and other sources so that you are prepared when or if you hit the
courtroom.
The
upside is many of the collection agencies make mistakes by hiring
low waged servants to handle the job of finding debtors. When they
are sifting through the files, they often lose contacts since they
have millions of records each day. Now if a collection agency has
an affiliation with the three big bureaus, then they have access
to information that independent collection agencies do not have.
If you are in a financial bind that makes it difficult to repay
your debts, you may consider losing your self and leaving no
traces when you leave. If you move, do not freely hand your
information, including address, phone, city, or other information
to anyone you do not trust. When you set up a phone account, make
sure that you have your phone unlisted. Do not apply for loans,
credit cards, or anything that requires information from you. It
is important to keep a low profile in your new area to avoid
complications. This is a temporary solution if find no other
solution for getting out of debt. Problem! The problem with
running away from your debts is that in time it will catch up with
you no matter how cautious you are. If there is no other way out
then sometimes, we have to take a leave of absence, but if there
is a solution, we need to search all options available to us
first.
One
solution is negotiation. If you are hassled by creditors, it is
time to send a letter recognizing your situation and asking for an
extension on payments. If you make regular payments working the
debt down then you are on the right road to credit repair. If your
debt has reached the collection agency you might want to call your
creditor and ask them to take back your debts. This means you will
set up a plan to repay the charge against you and continue paying
until that debt is paid in full. In return, your creditors will
contact the collection agencies and let them know the debt is in
current resolve.
Do
not miss a payment when the creditors take back your debt. This
will only frustrate the creditors since they were nice enough to
give you a second chance. If you call your creditors and ask for a
take back on your debt and the creditor denies you but, gives you
the opportunity to contact the collection agency to set up payment
plans…by all means do it! If you are lucky enough to hear this
from a creditor and the creditor as promises takes back your debt
after you paid off the collection agency, you are taking steps to
rebuilding your credit.
When
you are in debt creditors will contact you first for up to four
weeks in an attempt to collect. When you fail to make payments,
the creditors contact the collection agencies, who then pursue the
debt. To avoid collection agency hassles deal with the creditors.
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