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Balanced Life Tip: Coping With Collection Agents
As our economy continues to tighten many people will find it more difficult to manage their debt and eventually
some will be have to deal with collection agents. Credit card debt is usually unsecured, that is, there is no
collateral held against the debt. If consumers don’t pay, creditors can place negative remarks on their credit
reports but there is nothing to repossess. They cannot touch assets without taking legal action. Most often,
creditors merely call it a loss and sell off old unpaid debt to a collection agency.
The creditor may be done with the account but for the consumer, the ordeal is just starting. If you find yourself
in that position, knowing some simple truths about the working with collectors can make this time less
stressful and can help prevent you from making costly mistakes.
Open your mail. You will officially know what is going on with your account by mail. As companies give up on
their ability to collect from you, they will transfer, actually sell, your account to another agency—often for
pennies on the dollar. They must officially let you know when your account has been transferred. This is
done through the mail. You need to know whom to contact about your account. Additionally, every time your
account is transferred it is actually worth less to the collection agency which translates into more negotiating
power for you.
Answer the phone. Ignoring the phone only makes them call more often. When you speak to an agent, don’t
argue, don’t whine about your situation, and don’t plead your case. It won’t do any good. Collection agents
are on commission. They are interested only in money. They hear the same reasons and/or excuses all day,
every day. They aren’t interested in your special circumstances and can do next to nothing to help you make it
better.
They will call you on your cell phone, call you at home or call you at work if they have the number. If you don’t
want to deal with telephone calls at all, confirm the address of the agency. Send them a letter stating that they
may only contact you by mail. Get a return receipt for the letter you send. You may need to do this every time
your account is sold to another agency.
On the phone, be nice but firm. Working in collections is one of the most difficult jobs in the world.
Collectors spend their whole day talking to fearful, angry, bitter, stressed and evasive people. Being pleasant
and polite to them will make the conversation easier for both of you. Calmly assure the collection agent that
your intention is to pay your debts in full when you have the money to do so. When they pressure you to make
arrangements to pay, simply reaffirm what you’ve already said and apologize for not being able to do more at
the present time. Never mention bankruptcy. To a collection agent, bankruptcy means you have no intention
of paying your debts.
Don’t make promises you can’t keep. Many of people will make promises to collection agents just to end
the unpleasant call. Broken promises only result in more aggressive, less cooperative behavior from
collectors. This is why it is better to avoid setting up payment schedules. The one thing you should always
say to a debt collector is that you intend to pay your debts in full when it is possible to do so. >>read more
some will be have to deal with collection agents. Credit card debt is usually unsecured, that is, there is no
collateral held against the debt. If consumers don’t pay, creditors can place negative remarks on their credit
reports but there is nothing to repossess. They cannot touch assets without taking legal action. Most often,
creditors merely call it a loss and sell off old unpaid debt to a collection agency.
The creditor may be done with the account but for the consumer, the ordeal is just starting. If you find yourself
in that position, knowing some simple truths about the working with collectors can make this time less
stressful and can help prevent you from making costly mistakes.
Open your mail. You will officially know what is going on with your account by mail. As companies give up on
their ability to collect from you, they will transfer, actually sell, your account to another agency—often for
pennies on the dollar. They must officially let you know when your account has been transferred. This is
done through the mail. You need to know whom to contact about your account. Additionally, every time your
account is transferred it is actually worth less to the collection agency which translates into more negotiating
power for you.
Answer the phone. Ignoring the phone only makes them call more often. When you speak to an agent, don’t
argue, don’t whine about your situation, and don’t plead your case. It won’t do any good. Collection agents
are on commission. They are interested only in money. They hear the same reasons and/or excuses all day,
every day. They aren’t interested in your special circumstances and can do next to nothing to help you make it
better.
They will call you on your cell phone, call you at home or call you at work if they have the number. If you don’t
want to deal with telephone calls at all, confirm the address of the agency. Send them a letter stating that they
may only contact you by mail. Get a return receipt for the letter you send. You may need to do this every time
your account is sold to another agency.
On the phone, be nice but firm. Working in collections is one of the most difficult jobs in the world.
Collectors spend their whole day talking to fearful, angry, bitter, stressed and evasive people. Being pleasant
and polite to them will make the conversation easier for both of you. Calmly assure the collection agent that
your intention is to pay your debts in full when you have the money to do so. When they pressure you to make
arrangements to pay, simply reaffirm what you’ve already said and apologize for not being able to do more at
the present time. Never mention bankruptcy. To a collection agent, bankruptcy means you have no intention
of paying your debts.
Don’t make promises you can’t keep. Many of people will make promises to collection agents just to end
the unpleasant call. Broken promises only result in more aggressive, less cooperative behavior from
collectors. This is why it is better to avoid setting up payment schedules. The one thing you should always
say to a debt collector is that you intend to pay your debts in full when it is possible to do so. >>read more