Are The Debt Collectors Looking For You?
If you receive a call from a debt collector, it means you have an unpaid bill - that has been in arrears for possibly a few months
. If you have ignored the letters from the company that you owe money to, and have made no attempts to contact them or endeavor to pay the bills, you are considered a bad debt.
Debt collection agencies are hired by a company to collect the money owed to them. Debt collectors are more aggressive in their efforts, as they know that you have in all likelihood been avoiding any contact with the company, and are likely to ignore their efforts as well. You are not their customer, just a debtor, a label you should try to avoid if at all possible, as it is not an honorable one.
Credit reporting agencies often receive their information from debt collection agencies. These agencies keep track of your credit record. Your credit record is used to indicate how good you are at paying your bills, and is referred to by mortgage companies, car dealers and other finance companies to determine your credit-worthiness.
There is very little you can do to avoid debt collectors, as they have various resources at their disposal to track you down, even if you move house. Because they have been hired to find you and collect the outstanding money, they will resort to embarrassing you by contacting your employer, neighbor or even your child's school in order to track you down. They will do everything they can to find you and collect the debt, as that not only provides their customer with better service - it is often the only way they can get paid for the job they have done.
Because there are Federal regulations governing the debt collection industry, their treatment of you should follow a particular code or guideline, although of course there are some agencies who will flaunt these regulations. If there is some confusion about the debt, either the amount or whether it actually is your debt, you should contact the company immediately. The debt collectors may be able to assist with sorting this type of situation out with you. Whether you are in the right or not, keep a detailed copy of all paperwork and any communication between the company or debt collectors and yourself.
One method of debt collection that contravenes the Fair Debt Collection Practices Act is the use of threats to recover the debt. Report any violations to the Better Business Bureau.
by: Kevin Flores
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