Debt Relief Tips - Getting Relief From Your Debt Collectors
Relief From Debt Collectors
By Daniel Cho
Debt collectors have been correctly labeled as the worst and most fearsome type of collection agents. These collectors have been known to strike fear and terror into the hearts of even the most hardened debtors and paralyze those who are trying to get their finances under control. Therefore, the first thing to do is take control, not only of your finances, but of yourself and any collection actions taken against you. Take control, don’t ignore collection attempts, and don’t be afraid.
Debt collectors operate from a computer driven database provided to them by the very people you owe money to, your creditor. By the time a collection agency buys your account, it has been ‘charged off’ for non-payment and sold for between 8 to 12 cents on the dollar. Debt collectors make their money off of commission, between 14-25 percent, and in their plight to stack commissions many debt collectors have stepped across the line of what they can legally do as well as the line of decency. Many debt collectors seldom use their real names, and usually ‘job hop’ or bounce from account to account, taking advantage of the anonymity of the telephone.
On the surface, the relationship between a debtor and a collector seems greatly uneven. Collector’s will see themselves in a position of power, many more than willing to take advantage of a consumer with several intimidation tactics. Many of which include calling you at work, threatening to talk with your family or neighbors, threatening wage garnishment, and in rare and extreme cases, threaten to arrest you. Consumers rarely complain about these tactics, but a smart consumer would review his rights under the Fair Credit Reporting Act. Learn exactly what the debt collector can and cannot do and challenge them on violations. Don’t forget though that the best approach would be a professional and honest one. Remember to keep your tone even, and to be honest to yourself and to the collection agencies. Don’t be afraid to tell them what day and what time they may call, that you are reviewing debt relief options, or how much you can afford to pay and when you can afford to pay it.
Several finishing helpful tips:
- Don’t forget that debt collectors are using a front to receive payment.
- Don’t forget your rights under the Fair Credit Reporting Act.
- Don’t forget that you are entitled to all information in relation to the debt, so ask for them!
- Lastly, try audio taping your conversations with the collector and letting them know beforehand. The word on the grapevine is that it should give them a good scare.
Daniel Cho is a financial writer for Select Debt Relief specializing in consumer debt and alternatives to bankruptcy. Currently he studies Business and Theatre Performances at the University of California at Berkeley where he is an active member of the Lambda Phi Epsilon Brotherhood- Delta Chapter, and Theatre Rice- Modern Asian American Theatre Performances.
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