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Legal And Illegal Tactics A Debt Collector Will Use To Collect: Debt Collection Basics Part Three

By Mallory Megan on Saturday, August 7th, 2010 | No Comments

In the first two articles I wrote about what a collections account was, how sending delinquent accounts out to an agency profits a creditor, and the act of a third party collection agency buying old debt from a creditor.

I spoke about what kinds of information a collection agency will use and collect in their efforts, and additionally that third party collection companies are governed by federal and state laws and are overseen by the FTC.

Some collection agencies will use illegal, deceptive and strong arm tactics to confuse and intimidate consumers including pretending that they are one of their creditors and requesting them to verify information, pretending to be an old friend or neighbor to catch a debtor off guard, repetitively calling or mailing a debtor to the point where it becomes a nuisance, or sending threatening letters or leaving threatening voicemail messages.

Legal but manipulative practices include pressing the debtor, preying on their emotions, and using vague threats like \”respond within ten days or further collections attempts will follow.\” Other illegal methods include idly threatening lawsuits or pursuing lawsuits when the collection agent has no intention to, threatening to throw a debtor in jail, threatening to garnish wages or seize bank accounts when they have no authority to, lying about the amount that is owed, or asking for more than what is owed are used as well.

For the bill collection industry, time is the enemy and an excellent collection agent is fully aware of this fact. Their goal is specifically to obtain money as soon as possible.If you are talking to a debt collector, keep in mind that at any time you have the legal right to tell them you are busy and will call them back if you are flustered, hang up, cool off, develop a game plan, and contact them later. An aggressive debt collector will ask you why you can\’t make payment arrangements today.

Rapid Recovery Solution is a commercial collection agency that writes stories on medical collection companies. Check here for free reprint licence: Legal And Illegal Tactics A Debt Collector Will Use To Collect: Debt Collection Basics Part Three.

How Will A Collection Agent Try To Collect My Debt?

By Mallory Megan on Friday, July 30th, 2010 | No Comments

Collection agencies for the most part use letters and phone calls to accomplish collection. Collection letters are generally computer generated, and vary in severity. The first letter typically begins with a simple \”reminder\” tone and as the letters progress they may build up to a final demand.

The first demand letter legally must inform the debtor that they have the capability of disputing the validity of the debt, or if they choose to, request written verification of the debt. If they would like to receive written verification, the agency by law must send some sort of confirmation after verifying it with the original creditor. Demand letters will also confirm that they come from a debt collector, and that any information obtained will be utilized in the attempt to collect debt.

The envelopes that third party collection agencies use can\’t disclose anything pertaining to their nature. Thus, anything embarrassing, such as a post card, would be strictly prohibited. The return address should also be discrete; as a result many collection agencies will simply utilize their company\’s initials, or some other type of vague name.

The tone of the additional letters are generally dependent on the reaction of the debtor. Agreeing to repay the debt will most likely result in letters written with a gentler tone. Belligerent reactions, or even a lack of reaction from the debtor may result in a more threatening tone.

The goal of debt collectors is to attempt to create a feeling of urgency. Most debt collectors are aware that many debtors owe many types of debt and seek to instigate the debtor to prioritize their particular account. Deadlines may be set, with vague threatening tones, but failure to respond usually results in only more correspondence. Collection letters will always try to convince the debtor to call the collection agency on the telephone directly. If the debtor does not within thirty days, then the collector will often initiate phone calls.

Mallory Megan works for Rapid Recovery Solution and writes articles on credit collection agencies This article, How Will A Collection Agent Try To Collect My Debt? has free reprint rights.

Today In The Collections Industry

By Mallory Megan on Saturday, June 5th, 2010 | No Comments

The collections industry has grown quite large in the past couple of years. The reason for this is that collections and recoveries are typically outsourced business functions. It would be unthinkable for a creditor to try to handle retrieving debt from all of their accounts, so the creditors call upon the collections agencies.

But there seems to be a beginning of an enormous change taking place with the collections industry. The industry has grown to massive proportionas through the recession and seems giant. Rather than hire out more service providers, creditors are begining to lower the number of debt collection companies that they will work with, which requires the companies they originally hired to take on more accounts.The effects of this could change the way that the collections industry operates in a large way.

As the worst workers are removed from these collection networks, certain debt collection agencies are going to lose their most important clients. Creditors will also have less reason to work with companies that have a reputation for being inappropriate. The financial effects of this will cause these companies to suffer, and company value will also fall with some owners forced to sell their companies in distress.

As this happens, the most efficient performers will see a lot more potential job growth, less competition, greater leverage on contract terms, better revenues, and improved profitability.

Within the debt buying market, the same type of transference is also taking place. Instead of calling on more debt buyers, some creditors are lowering the number of companies they approach for selling the accounts.

Less functional, smaller debt buyers will experience less of a chance to buy from these issuers. Here again, a condensement within the primary debt sales market will increase. Recovery executives within credit businesses will be making the same kind of choice more and more, picking concentration within their vendor networks rather than diversification.

Rapid Recovery Solution is a medical collection agency. Get a totally unique version of this article from our article submission service

An Oldie But A Goodie- Fake Bill Collector Scheme

By Mallory Megan on Saturday, May 22nd, 2010 | No Comments

Although an oldie, apparently still a goodie. Enjoying a boost in popularity as of late, the fake debt collector scam still fools unknowing victims.

First, you will receive a phone call from a telephone number that will not be recognizable. At times, it will seem legitimate, but ultimately, not familiar. When you get the call, the person calling will tell you that they are a bill collector with so and so debt collection company, and that this is an attempt to collect debt. At times, the phonies have been known to claim that they are working in addition to a local lawyer to get your delinquent account settled. The conman will tell you that you have accumulated a large amount of debt from a previous account. Typically, the crooks will tell you that you potentially owe them thousands, but if you are willing to settle, they will “settle: for, oh say, five hundred dollars. And could you wire the money via Western Union?

An interesting hint of ingenuity on the part of the scam artists is that a good amount of times these calls will arrive on a late Friday evening, or afternoon. When they call at these times, any government offices that you may report this to will be shut and closed for the weekend.

On numerous occasions the phony debt collectors will be calling from outside of the United States. An example of this was a scam that made recent news involving a call center in India. Utilizing services in order to mask their numbers, call centers located outside of the country may even choose a number from an area code nearby to where you live.

If you have received a call from a debt collector that you feel may be a scam, it is imperative to remain vigilant. Ask your bill collector for a written statement of your debt. If they will not provide you with written proof, don’t fork out any money to this suspicious business. If you feel as though you may have been victimized by a phony bill collector scam, it is necessary to file a report with the Attorney General’s office in your state. It is important to collect as much information as you can to provide more details in your complaint.

Rapid Recovery Solution is a third party debt collection company. Get a totally unique version of this article from our article submission service

In A Time When Americans Are Going Without Health Insurance The Medical Debt Relief Act Is A Godsend

By Mallory Megan on Thursday, April 22nd, 2010 | No Comments

From 1999 to 2009, premium costs for family insurance have risen by one hundred and thirty one percent. Easily, that’s over three times the rate at which working wages rose during this time. In this time of economic hardship, millions of jobs have been lost, putting workers who just lost their jobs at risk of also living without health insurance. For those who remain employed, employers are pushing more of the costs of health insurance onto their workers as they struggle with economic uncertainty. Then there are blue collar and retail workers, waitresses and the like who are paid less, work harder and are not offered health insurance plans at their jobs. No wonder that Americans are struggling to pay their medical bills.

In 2007, about seventy two million Americans wrestled with their medical bills. A large portion of these people made paying off their medical bills their top priority, while they had to struggle to pay for basic necessities like heat, rent, or food. More than THIRTY MILLION American adults utilized ALL of their savings or BORROWED AGAINST THEIR HOMES in order to pay off medical bills. Unfortunately, in this time of economic hardship, many Americans could not stop the bill collector from knocking on their door.

Thirty million Americans are contacted every year by collection agencies for delinquent medical bills; many struggle to pay these. Many people are unclear as to why their insurance refused to pay a claim, others are confused about the amount they owe. Over half of people who took the survey reported that they were puzzled by the medical jargon on their bills, and one in four reported confusion led them to allow bills to go past the due date or to be sent to a collection agency.

A delinquent medical bill that gets sent to collections will typically be reported to credit bureaus. This will result in a lower credit score. Medical accounts, even those that have been paid off in full will stay on a credit report for up to seven years. This will result in lower credit scores and increases the costs of mortgages, car loans, or credit card interest.

Luckily, Ohio Congresswoman Kilroy saw the ramifications of medical bills that remain outstanding. She decided to take action because she saw medical debt as unique. She introduced The Medical Debt Relief Act, which says that medical debt that is fully paid off or settled must be removed from a consumer’s credit report within thirty days.

Even though this will not repair our chaotic healthcare system, it will offer relief for those who have paid off their medical debt, while the rest of us wait for more efficient health care reform.

Mallory Megan works for a debt collection agency. She also composes articles on business, finance, the credit industry and collection agencies. You can get a unique content version of this article from the Uber Article Directory.

Debt Collectors Or Debtors: Who Is Suing Who Now?

By Mallory Megan on Monday, February 8th, 2010 | No Comments

It is true that Americans with overdue debts will typically be subject to a number of retributions. Collection letters, phone calls, unfavorable credit scores and a chance to wind up in court are examples of punishments for non-compliance.

However, a new trend that is growing is debtors suing debt collectors first. Any violation of the Fair Debt Collection Practices Act can be valid reason alone to take a collector to court. It might be true that in a declining economy suing a debt collection agency instead of paying off what you owe may be your only choice. There were 8,347 consumer lawsuits filed against collection companies in 2009. That\’s a 55 percent increase over 2009 and double that number filed in 2007.

A few debtors are plaintiffs suing for their first time; the people who suddenly find themselves unable to pay debts and feel that they have been wronged by aggressive collectors. Others compulsively sue, typically these people have debts worth tens or hundreds or thousands of dollars. It is their hope that favorable judgments may put them on a \”collections blacklist.\” If he has sued 4 out of 5 debt collectors, debt collection agencies are probably going to want nothing to do with this strange character who puts time and effort into lawsuits when he could be looking for a sense of structure, and a job.

One example of a lawsuit in action was from a woman who complains that the collection agency never offered her proof it was entitled to collect. Seriously? Most debt collection companies adhere closely to FDCPA laws, but even that law is not clear on certain practices such as whether it\’s legal or not to leave a voice mail. Basically, the FDCPA hit the scene in the 1970s and needs desperately to be updated to today\’s technology.

You might not want to know my opinion, but here it is. I was contacted by a debt collector who left a message on a third party phone, asking for me and letting me know she intended to collect a debt. This is a big no-no. I could have called her and given her hell, but I know why I have the debt and even though I may be broke, I intend to pay it back. To me, it seems like the economy is not getting better any time soon as the number of people who refuse to hold themselves accountable for financial decisions they made in the past grows. I hate to say it, but a debt is a debt, whether we are in a recession or not.

Mallory McGuinness works for a debt collection agency. Also, she does articles on business and finance, the credit industry and debt collection You can get a unique content version of this article from the Uber Article Directory.

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