Many people in Glendale and the surrounding communities know what it’s like to be harassed by a debt collector, but very few know these five debt collection secrets – and these secrets can help you minimize stress so you’re better-equipped to deal with the debt collectors who keep bothering you.
5 Debt Collection Secrets That Collection Agencies Won’t Tell You
There are plenty of things debt collectors won’t tell you… but by law, they’re required to tell you how much your alleged debt is and to which creditor you owe. They do have a few debt collection secrets they hope you never find out, though.
Here are five of them.
#1. “Refusal to pay” means absolutely nothing.
Sometimes a debt collector will say, “We’re going to inform your creditor of your refusal to pay.”
Well, no kidding – your creditor already figured out that you weren’t paying the bill, right before they sold it to a collection agency.
The truth: Your original creditor has absolutely nothing to do with your debt once it’s with a collection agency. The original creditor writes it off as an “unrecoverable loss,” so why would it care that you’re not paying the collection agency?
#2. If you tell a debt collector your employer doesn’t let you chat while you’re at work, he or she legally has to stop calling you there.
The Fair Debt Collection Practices Act, or FDCPA, requires debt collectors to stop calling you at work as soon as you tell them you’re not allowed to take calls like these.
#3. “We’ll publish your name” or “We’ll tell your family” is baloney – and it’s illegal.
Debt collectors can’t threaten to publish your name on a list of people who don’t pay their debts or, for the most part, discuss your debt with anyone but you or your attorney. Unfortunately, a lot of harassment by debt collectors involves threats like these.
#4. Debt collectors work on commission.
Many debt collectors work on what’s called a sliding scale commission. The faster they get you to pay what they claim you owe, the higher their commission will be. Other things you should know:
- Sometimes debt collectors have quotas to meet, so they’re more willing to negotiate a settlement with you when they’re shy of a goal
- Sometimes creditors pull accounts back from collections, and some debt collectors are more willing to “wheel and deal” when that’s about to happen
- A smaller, lump-sum payment can be an acceptable alternative to making monthly payments over time, because it means the debt collector gets his or her whole commission at once
#5. Debt collectors have to sue you to take your stuff.
While they may say otherwise, debt collectors usually have to drag you to court if they want to go after your property or assets if they’re trying to get you to pay unsecured debt. They can’t threaten to sue you, though, unless they fully intend to – that’s a protection offered under the FDCPA, too.
And is a debt collector really going to hire local representation (local to you, not to them) to collect a few hundred dollars? It doesn’t seem likely, does it?
(Check out 5 Ways to Push Back Against Debt Collectors for some great tips on what to do when debt collectors bother you.)
What if a Debt Collector Violates Your Rights?
If you suspect a debt collector has violated your rights under the Fair Debt Collection Practices Act, you may have legal recourse. Sometimes knowing these five debt collection secrets can help you understand when a debt collector is violating your rights, too.
Call us immediately at 818-659-8324 or fill out the form below for a free case review. We’ll look over the facts and determine whether a debt collector likely violated your rights under the Fair Debt Collection Practices Act today.