When you fall behind on your obligated monthly payments you are very likely to come into contact with a debt collector. This is because the creditor that you haven’t paid has turned the debt over to an outside debt collection agency. Known for their aggressive and intimidating techniques, dealing with a debt collector can sound like a daunting experience for anyone. This is why we are going to explain exactly what you need to know when dealing with them and what they can and can’t do.
Push Tactics
Debt collectors are paid according to the amount of collection calls they place or demand letters they send out, this is why they will call and harass you endlessly. What you need to remember is that they want to make you crack. They want you to pay your debt immediately, regardless of whether it is a financially sound decision at that time.
Others don’t work for creditors; they buy creditors old debts at a discount. They then try to make a profit by collecting as much as possible as quickly as possible.
They know that statistically the longer the debt goes unpaid, the less likely it is to be collected. This motivates them to go in strong and create a false sense of urgency to push you to pay immediately.
What debt collectors can’t do
Always be prepared when dealing with a debt collector. Knowing what they can and can’t do will protect your rights and avoid bullying.
According to the South African Council for Debt Collectors:
Debt Collectors MAY NOT:
• Call you before 8am or after 9pm unless you tell them it is okay to do so.
• Call you on a Sunday.
• Contact you at work if the collector knows that your employer does not want you to be contacted during these hours.
• Get in touch with your employer about a debt you owe.
• Contact your friends, neighbours or relatives unless they need your contact details but they can’t discuss the issue with them.
• Communicate with you about your debt by using a postcard or an envelope that clearly indicates that a debt collector sent it.
• Use a letter or envelope to communicate with you that appears to have come from a government agency or a court.
• Call you over and over again within a relatively short period of time. For example they can’t call you repeatedly in a single morning or afternoon.
• Swear or insult you during a conversation, or threaten you with loss of reputation or with jail time. They can however threaten you with realistic con
• Order you to accept calls from them.
• Deposit a post dated cheque you have given them before the date on the cheque.
• Collect more than you owe on a debt unless the contract you have with the creditor that turned your debt over to collections allows them to do so.
What debt collectors CAN do:
• Garnish your salary. If the court gives the debt collector permission to garnish your salary, it will issue an order requiring your employer to withhold a certain amount of money each month for a set period of time.
• Take one or more of your assets. If a debt collector gets permission to take an asset such as a boat or car, the asset is sold in a public auction and the proceeds are applied to your debt.
• Put a judgement lien on one of your assets. When a lien is placed on one of your assets you can’t sell it or borrow against it without paying the collector the money you owe.
