To understand why collection agencies use scare tactics to try get you to pay your bills, you must understand how they work.
A collection agency's sole purpose for existing is to pursue outstanding debts from individuals or businesses.
They get your account by "buying" your debt from your original creditor for a lesser amount than you owe.
Generally your creditors will "sell" your debt to a collection agency if your balance is 90 days or more past due.
What this means is that the collection agency will pay your creditor a fraction of what you owe them, then attempt to retrieve the full balance from you.
The amount you pay the collection agency over the amount they paid for your debt is profit for them.
That is why they are so relentless.
They have essentially paid your bill off for a cheaper amount and now they want their money back, and then some, from you.
Some collection agencies will try to scare you into paying your debt.
It is good to know what tactics they may use so that you do not feel unnecessarily threatened.
Some scare tactics include: - Pretending they are one of your creditors attempting to verify personal information in order to bait you onto the phone or into confirming the person they are talking to is you.
- Sending letters on letterhead that resembles that of an attorney's office although the words "Attorney At Law" or "Esq.
" are not on it.
- Calling constantly on your home or cell phone from an "unknown number" multiple times each day, but leaving only one message.
- Leaving threatening messages attempting to take you to court with no basis for litigation.
- Taking advantage of your emotions when they talk to you.
They are trying to annoy you to the point that you will be willing to pay the full amount.
You can make collections calls stop.
The first thing you can do is exercise your right to not be contacted by phone.
The Fair Debt Collection Practices Act protects you from telephone harassment.
If you feel you are being harassed, the next time they call ask the caller for their contact information, your account number, and the balance due.
Write down the name of the caller, the name of the collection agency, their physical address, and their telephone number along with your account number and the balance due.
Do not get into an argument with the caller.
Instead, insist that they give you this information without discussing your payment at all.
When you write down all the information, say thank you and hang up.
You are going to send them a certified letter.
In this letter, state your name and your account number, and that you do not wish to be contacted by phone.
Include an address where you can be reached by mail instead.
Make sure the letter is typed and sign and date it.
Mail the letter to the collection agency by certified mail with a return receipt requested.
(Your local post office can help you with this.
) As soon as they receive your letter, they are not allowed to call you anymore.
If they do, it is a violation of your rights, and you can sue them for harassment.
Unfortunately when the collections calls stop, the debt does not disappear.
At this point, you should talk to a professional, and start debt counseling.
Did you know that depending on the type of debt you have, a professional debt negotiator could get your debt settled for 40-60% off the original amount you owe - and you will not be responsible for the rest? Take control and do not let collection agency scare tactics worry you.
Talk to a debt negotiation or credit repair professional about your bad credit, and repair it on your terms.
A negotiated payment is better than no payment at all.
Collectors know that.
They are willing to negotiate.
© 2008 - Ken S.