As a consumer in debt you should be aware of everything to do with that debt including what happens if you don’t pay it back. Bill collectors are a vital part of the American economy, and in 2010 more than 10,000 collection agencies collected over $8 billion. In this economy that $8 billion had a huge impact on business owners across the country in helping them recover bad debt, make a profit and stay in business. If you are in debt here are 8 things a bill collector doesn’t have to tell you but you might want to be aware of:
1. Your rights. As a debtor it is up to you to make yourself familiar with your rights under the law. It isn’t anyone else’s responsibility to make sure that you are informed about your debt, the terms, and the collection of your debt or the laws regarding any of those things.
2. You can make payments. It is better if you can pay off your debt once it is placed with an agency and the sooner the better but if you can’t, you can make payments.
3. Collection agencies do not have the authority to offer you a settlement amount. Collection agencies work for the creditor, the original person you owe the money to. Only the creditor can authorize a settlement once they place an account with an agency or accept a payment in full for a lesser amount.
4. If a debt has passed the statute of limitations. Hopefully you know what you owe, who you owe it to and how much you owe. If you owe an old debt, it doesn’t go away until you pay it, so if you suddenly get a call about an old debt you know you didn’t pay, it may be outside the statute of limitations BUT that does not mean a collection agency can’t try to collect it.
5. Collection agencies are a service business that helps businesses across America. They are a vital part of this economy keeping the cash flowing in this country. Most of the bad press you read about and see on television is about debt buyers, not collection agencies – totally different services.
6. Their client can sue you if you don’t pay. This can result in a judgment, garnishment and attachment of any assets you have, including bank accounts, pay checks, property, homes, boats or cars.
7. If you send a collection agency a cease and desist letter they can only accelerate your account to more aggressive action. Once they receive that letter from you they cannot contact you and so are forced to take some type of legal action to get paid. This is worse for you in the long run.
8. When you send a letter to a collection agency telling them to stop calling you, they will stop calling you but your debt does not go away. You still owe the money and the creditor and the agency are being forced to collect in another manner other than contacting you. If they can’t call you to get payment, they may have no other option than to pursue legal action on the debt. Don’t force someone to pursue you legally!
