Nobody likes debt collectors for a good reason. Below are 10 things you must know about them to protect yourself and not get overly hassled.
1. The more money they collect each month, the bigger their bonus will be.
Similar to car salesmen, top performers get bonus checks monthly that starts at $10,000.
2. They are vital to keeping the cash flow going in the country.
Put this in perspective, a decade ago, 10,000 collection agencies collected over $8 billion. If that owed money was not collected, the impact to the economy would be massive!
3. They keep pushing no matter what you tell them.
If you come up with one reason why you cannot pay your debt right now, they will get back at you with 10 reasons why you can. Financial tip nightmares like borrowing from your family, withdrawing your 401(k), and paying with credit card.
4. They pretend to listen to your troubles.
Yes, they will act sympathetic, but inside, they think you are only making excuses and wasting their time.
5. They are willing to negotiate.
Always make a low offer. If they do not accept it as settlement, ask what they are willing to accept and negotiate from there.
6. They play tricks when negotiating with you.
It is like playing good cop-bad cop. They will say they will call the manager, who will likely play bad cop so you open up your wallet.
7. They hope you do not check the statute of limitations in your state.
Technically, if your debt has passed, they cannot sue you or put it on your credit report. If you make any kind of payment or even acknowledge the debt, that usually starts the clock over.
8. They know the manager will not help you.
When discussing with a debt collector, do not waste your time and ask for the manager. You will not get any help.
9. They love calling you at work.
This puts extra pressure on you. Can you imagine the stress? Ask them to stop calling you at work – by law, they need to follow it.
10. They can treat you bad, but that is illegal.
If a debt collector threatens to have you arrested, uses profanity, or calls before 8 AM or after 9AM, you can report them to your state attorney general’s office and the Federal Trade Commission. It is illegal and a violation of the Fair Debt Collection Practices Act