Are The Debt Collectors Looking For You?

If you have any bills that you have not paid for a few months, chances are you will be getting a call from a debt collector soon. You are now considered a bad debt, usually after attempts by the company to contact you have been ignored and you have not tried to contact them or make some sort of payment against the 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. 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.

Debt collectors are often permitted to report your information to the credit reporting agencies. These are the people responsible for tracking your bill-paying habits. Credit card issuers, car dealers, mortgage companies and even stores use the information from your credit report to determine whether you are a customer who is likely to pay their bills.

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. Many collection agencies only earn their fee when they have collected money from the debtor, so it is in their interest to do everything possible to find you and convince you to pay the debt. One of the reasons they are so determined to find you is that they only get paid for their services once you have paid off the debt.

The debt collection industry is regulated by Federal rules and guidelines to ensure that your rights are not violated too, despite some disreputable companies’ methods. Any dispute regarding the existence of the debt should be addressed with the company, or can be worked out with the assistance of the debt collector. 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.

If the agency is using threatening tactics against you, even if you do owe the money, you should immediately report them to the Better Business Bureau. This is a violation of the Fair Debt Collection Practices Act, the federal law that guides the practices of the debt collection industry.

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