Debt collectors may seem intimidating as they are infamous for their aggressive and violent techniques, as they will harass and threaten debtors with various consequences. The following information will be helpful when dealing with debt collectors:
Understanding how debt collectors operate:
When consumers fall behind on payment obligations, they are likely to receive multiple notices demanding payment. For consumers that fail to pay, the creditor is likely to notify a debt collection agency, which will consequently result in the consumer being contacted by a debt collector.
Certain debt collectors are difficult and demanding right from the start, whereas others may start out by acting relatively friendly on the phone but if consumers don’t agree to pay immediately, they will turn up the pressure next time they phone.
Some debt collectors implement the deliberate strategy of starting out being really friendly in order to encourage consumers to let their guard down and say something that will help them collect debt. Other debt collectors are paid according to the number of collection calls they place or number of demand letters they send out, which is another method that offers them a financial incentive is being pushy and persistent or worse. Other debt collectors don’t work for creditors at all, but they buy creditor’s old debt, often at a discount. Then the debt collectors try to make a profit by collecting as much debt as possible.
Debt Collectors also know that statistically, the longer a debt goes unpaid, the less likely it is that they will ever collect it. This knowledge motivates them to start out strong and also encourages them to create a false sense of urgency when they talk to you. For example they may pressure you to commit to paying your debt by a specific deadline or according to a very short timetable.
If you don’t agree to their demands, they may try to scare you paying by threatening you with a lawsuit, the loss of your personal property, garnishment or seizing of all your income, even jail time – regardless of whether these consequences are likely to happen or are even legal.