Debt Collection Information: Who is Calling you?
Agency Debt Collectors are widely known as the worst type of debt collection agents! Their computers contain your personal information, which is provided by the original creditor, or purchased from a data-mining company. When an outside agency gets your account, it has been “charged-off” for non-payment. Their auto-dialers fly through the numbers looking for the first call answered by a human. That’s why you sometimes get a recorded message telling you to call about “a very important matter.” They work on commission and don’t take time to respect humans or the law.
An agency collector’s commission ranges from 15-25% of what they can extract from you, plus bonuses if they hit a quota. Hard-working collectors can make $40-60K per year. The majority earn less because they routinely step over the line to increase their take.
Who Seeks a Career at a Debt Collection Agency?
In an industry where deception, craftiness, and deceit are rampant, you might imagine most honest people would seek work elsewhere, and you’re right. Statistics show that the average debt collector is male with a large ego, bounces from job to job, suffers low self-esteem, and enjoys using the telephone as an instrument of empowerment. Unsurprisingly, most have debt problems themselves.
Surveys across the country showed that some collectors begin their employment soon after being released from prison. Debt collection agencies appear and disappear from locations in a few days.
Due to the high pressure and constant stress, the debt collection business is plagued with high employee turnover. Continuous training of new collectors puts tremendous strain on the agencies and the employees. Every moment someone is in training, time is lost on the phone. Training is not as important as having someone making calls and intimidating consumers.
To overcome their insecurities, collectors use their position to take advantage of those they deem weaker. Some of their tactics include ignoring issues you present, threats, and intimidation, misrepresenting themselves, abusing and annoying you to push you as far as possible; it is psychological warfare. After all, a portion of what they collect from you becomes theirs. Unfortunately, far too few consumers complain about debt collectors overstepping their bounds because they are intimidated or embarrassed about their dilemma.
It’s not to say they are all bullies. Some agencies and collectors are honest, hard-working folks. However, our experience has shown that debt collectors can be pushy, overstep their boundaries, and seemingly force innocent people into making payments they may not be able to afford in the long run.
What Techniques Do Debt Collectors Employ?
You’ll hear standard phrases such as: “What is your intent” or “I’m going to recommend that our client take immediate legal action against you.” An innocent, unsuspecting consumer feels threatened, even terrorized by the antics of unscrupulous debt collectors. The worst ones will call you at work, violate third-party disclosure, or threaten you with arrest or wage garnishment if they don’t have the money today! They’ll try to persuade you to pay off old debts using your new credit card via Western Union wire transfers, bank drafting, debit checks, and cash. They will tell you your credit report will be clean if you send them money or if you will promise to pay them money.
You are entitled to be treated with truth, dignity, honesty, and respect for debt collection. If you believe that you are being mistreated for any reason, call us – you have rights, and no debt collector can take those from you.
Who and What is Covered by the FDCPA?
- Consumer – Any person who owes or is alleged to owe a consumer debt.
- Debt Collector – According to the FDCPA, a debt collector is anyone other than the creditor who regularly collects debts owed to others and includes attorneys who regularly collect debts.
- Consumer Debt – Any debt primarily for personal, family, or household purposes is covered under the FDCPA. Business, farming, and commercial debts are not covered. Alimony, child support, criminal fines, and tort claims are generally not considered debts within the meaning of the FDCPA.
