Help – The Debt Collectors Are Calling

When you get a call from a debt collector it is because you have a bill that has gone unpaid for several months. The company that you owe the money to has probably sent you several bills or reminder notices. If you have not contacted the company, paid the bill in full, or at least part of the bill, the company no longer considers this an open bill. It is now called bad debt.

Debt collection agencies know that you will avoid contact with them, just as you have with the company you owe money to. They tend to be more direct and forceful in their efforts, as they have been hired to do a job. Yes, at this point you are no longer considered a customer, you are a debtor. This is not a badge of honor and it is a label you should do everything you can to avoid.

A credit reporting agency will keep tabs on your payment habits and regularity, and often rely on the information they receive from debt collection agencies to do so. 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.

Generally, there is no escaping debt collectors, who use a number of methods to find you – even if you move house. They will even go so far as to call neighbors or your employer to track you down. Yes, it is annoying and can even be humiliating. But that’s their job. They have been hired to collect the money that you owe. 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.

Although there are some disreputable agencies, the debt collection industry is actually heavily regulated at the Federal level. There are rules that guide their conduct, the way they treat the debtor, and how often they are allowed to call you. If you believe that you do not owe money to the original company, you should contact them immediately.You can also try working with the debt collector to work out the confusion. But however you choose to do it, make sure that you keep copies of all of your paperwork and any communication regarding the issue. You should also track the calls and letters that the agency sends to you.

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.

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Help – The Debt Collectors Are Calling

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